
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC11408a]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                    CHAPTER 119--HOMELESS ASSISTANCE
 
                    SUBCHAPTER IV--HOUSING ASSISTANCE
 
                Part G--Rural Homeless Housing Assistance
 
Sec. 11408a. Use of FMHA inventory for transitional housing for 
        homeless persons and for turnkey housing
        

(a) In general

    The Secretary of Agriculture (in this section referred to as the 
``Secretary'') shall, on a priority basis, lease or sell program and 
nonprogram inventory properties held by the Secretary under title V of 
the Housing Act of 1949 [42 U.S.C. 1471 et seq.]--
        (1) to provide transitional housing; and
        (2) to provide turnkey housing for tenants of such transitional 
    housing and for eligible families.

(b) Priority

    The priority uses of inventory property under this section shall not 
have a higher priority than--
        (1) the disposition of such property by sale to eligible 
    families; or
        (2) the disposition of such property by transfer for use as 
    rental housing by eligible families.

(c) Transitional housing

                        (1) Leases authorized

        The Secretary shall lease inventory properties to public 
    agencies and nonprofit organizations to provide transitional housing 
    for homeless families and individuals and to provide such agencies 
    the option to provide turnkey housing opportunities for homeless 
    persons and other inadequately housed families.

                   (2) Rental to eligible families

        A public agency or nonprofit organization may rent housing 
    leased to it under paragraph (1) to a family for up to 10 years and 
    may, during that period, assist the tenant in obtaining a loan and 
    credit assistance under title V of the Housing Act of 1949 [42 
    U.S.C. 1471 et seq.] to purchase the housing from the Secretary.

(d) Lease procedures

                   (1) Identification of property

        Upon receipt by the Secretary of written notification from a 
    public agency or nonprofit organization that it proposes to lease a 
    property for the purpose of providing transitional housing or for 
    the purpose of providing transitional housing and turnkey housing 
    opportunities, the Secretary shall--
            (A) withdraw the property from the market for not more than 
        30 days for the purpose of negotiations under subparagraph (B);
            (B) negotiate a lease agreement with the organization or 
        agency; and
            (C) if a lease is agreed to, commence the repairs necessary 
        to make the property meet standards for decent, safe, and 
        sanitary housing.

                           (2) Lease terms

        A lease of inventory property under this section shall--
            (A) be for a period of not more than 10 years;
            (B) provide for the payment of $1 for the 10-year lease; and
            (C) provide the nonprofit organization or public agency--
                (i) the right to use the property for transitional 
            housing; and
                (ii) the option to arrange for the sale of the property 
            to an eligible purchaser.

(e) Purchase procedures

                   (1) Identification of property

        Upon receipt by the Secretary of written notification from a 
    public agency or nonprofit organization that it proposes to purchase 
    a property for the purpose of providing transitional housing or for 
    the purpose of providing transitional housing and turnkey housing 
    opportunities, the Secretary shall--
            (A) withdraw the property from the market for not more than 
        30 days for the purpose of negotiations under subparagraph (B);
            (B) negotiate a purchase agreement with the organization or 
        agency; and
            (C) if a purchase agreement is agreed to, commence the 
        repairs necessary to make the property meet standards for 
        decent, safe, and sanitary housing.

                         (2) Purchase terms

        A purchase of inventory property under this section shall 
    provide for a purchase price equal to not more than the fair market 
    value of the property minus 10 percent.

(f) Employment of homeless individuals

    A public agency or nonprofit organization may lease or purchase 
property under this section only if the agency or organization, to the 
maximum extent practicable, involves homeless individuals and families, 
through employment, volunteer services, or otherwise, in maintaining, 
operating, and renovating any properties leased or acquired under this 
section and in providing any services for occupants of properties 
assisted under this section.

(g) Participation of homeless individuals

                           (1) In general

        The Secretary shall, by regulation, require each public agency 
    and nonprofit organization leasing or purchasing property under this 
    section to provide for the participation of not less than 1 homeless 
    individual or former homeless individual on the board of directors 
    or other equivalent policy making entity of such agency or 
    organization, to the extent that such organization or applicant 
    considers and makes policies and decisions regarding any property 
    acquired under this section.

                             (2) Waiver

        The Secretary may grant a waiver to a public agency or nonprofit 
    organization that is unable to meet the requirement of paragraph 
    (1), if the agency or organization agrees to otherwise consult with 
    homeless or formerly homeless individuals in considering and making 
    such policies and decisions.

(h) Budget compliance

    The authority provided to the Secretary under this section shall be 
effective only to the extent approved in advance in appropriations Acts.

(Pub. L. 100-77, title IV, Sec. 592[492], as added Pub. L. 102-550, 
title XIV, Sec. 1414, Oct. 28, 1992, 106 Stat. 4041.)

                       References in Text

    The Housing Act of 1949, referred to in subsecs. (a) and (c)(2), is 
act July 15, 1949, ch. 338, 63 Stat. 413, as amended. Title V of the Act 
is classified generally to subchapter III (Sec. 1471 et seq.) of chapter 
8A of this title. For complete classification of this Act to the Code, 
see Short Title note set out under section 1441 of this title and 
Tables.
