
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: 42USC12746]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                CHAPTER 130--NATIONAL AFFORDABLE HOUSING
 
             SUBCHAPTER II--INVESTMENT IN AFFORDABLE HOUSING
 
                  Part A--HOME Investment Partnerships
 
Sec. 12746. Participation by States and local governments

    The Secretary shall designate a State or unit of general local 
government to be a participating jurisdiction when it complies with 
procedures that the Secretary shall establish by regulation, which 
procedures shall only provide for the following:

                           (1) Allocation

        Not later than 20 days after funds to carry out this part become 
    available (or, during the first year after November 28, 1990, not 
    later than 20 days after (A) funds to carry out this part are 
    provided in an appropriations Act, or (B) regulations to implement 
    this part are promulgated, whichever is later), the Secretary shall 
    allocate funds in accordance with section 12747 of this title and 
    promptly notify each jurisdiction receiving a formula allocation of 
    its allocation amount. If a jurisdiction is not already a 
    participating jurisdiction, the Secretary shall inform the 
    jurisdiction in writing how the jurisdiction may become a 
    participating jurisdiction.

                            (2) Consortia

        A consortium of geographically contiguous units of general local 
    government shall be deemed to be a unit of general local government 
    for purposes of this subchapter if the Secretary determines that the 
    consortium--
            (A) has sufficient authority and administrative capability 
        to carry out the purposes of this subchapter on behalf of its 
        member jurisdictions, and
            (B) will, according to a written certification by the State 
        (or States, if the consortium includes jurisdictions in more 
        than one State), direct its activities to alleviation of housing 
        problems within the State or States.

                           (3) Eligibility

        (A) Except as provided in paragraph (10), a jurisdiction 
    receiving a formula allocation under section 12747 of this title 
    shall be eligible to become a participating jurisdiction if its 
    formula allocation is $750,000 or greater, or if the Secretary finds 
    that--
            (i) the jurisdiction has a local housing authority and has 
        demonstrated a capacity to carry out provisions of this part, 
        and
            (ii) the State has authorized the Secretary to transfer to 
        the jurisdiction a portion of the State's allocation that is 
        equal to or greater than the difference between the 
        jurisdiction's formula allocation and $750,000, or the State or 
        jurisdiction has made available from the State's or 
        jurisdiction's own sources an equal amount for use by the 
        jurisdiction in conformance with the provisions of this part.

        (B) If a jurisdiction has met the requirements of subparagraph 
    (A), the jurisdiction's formula allocation for a fiscal year shall 
    subsequently be deemed to equal the sum of the jurisdiction's 
    allocation under section 12747(a)(1) of this title and the amount 
    made available to the jurisdiction under subparagraph (A)(ii).

                          (4) Notification

        If an eligible jurisdiction notifies the Secretary in writing, 
    not later than 30 days after receiving notification under paragraph 
    (1), of its intention to become a participating jurisdiction, the 
    Secretary shall reserve an amount equal to the jurisdiction's 
    allocation (plus any reallocations for which the jurisdiction is 
    eligible under section 12747(d)(1) of this title) pending the 
    jurisdiction's designation as a participating jurisdiction. The 
    Secretary shall reallocate, in accordance with paragraph (6) of this 
    section, any funds reserved under the previous sentence if the 
    Secretary determines that the jurisdiction will not meet the 
    requirements for designation as a participating jurisdiction within 
    a reasonable period of time.

                     (5) Submission of strategy

        Not later than 90 days after providing notification under 
    paragraph (4), an eligible jurisdiction shall submit to the 
    Secretary a comprehensive housing affordability strategy in 
    accordance with section 12705 of this title.

                          (6) Reallocation

        If the Secretary determines that a jurisdiction has failed to 
    meet the requirements of the previous 3 paragraphs or if the 
    Secretary, after providing for amendments and resubmissions in 
    accordance with section 12705(c)(3) of this title, disapproves the 
    jurisdiction's comprehensive housing affordability strategy, the 
    Secretary shall reallocate any funds reserved for the jurisdiction 
    as follows:

        (A) State

            If a State has failed to meet the requirements, the 
        Secretary shall--
                (i) make any funds reserved for the State available by 
            direct reallocation among applications submitted by units of 
            general local government within the State or consortia that 
            include units of general local government within the State, 
            insofar as approvable applications meeting the selection 
            criteria under section 12747(c) of this title are received 
            within 12 months after the funds become available for the 
            direct reallocation, and
                (ii) reallocate the remainder by formula in accordance 
            with section 12747(b) of this title.

        (B) Local

            If a unit of general local government has failed to meet the 
        requirements and is located in a State that is a participating 
        jurisdiction, the Secretary shall reallocate to the State any 
        funds reserved for the locality, with preference going to the 
        provision of affordable housing within the locality.

        (C) Direct reallocation

            If a unit of general local government has failed to meet the 
        requirements and is located in a State that is not a 
        participating jurisdiction, the Secretary shall--
                (i) make any funds reserved for the locality available 
            for use within the State by direct reallocation among units 
            of general local government and community housing 
            development organizations, insofar as approvable 
            applications meeting the selection criteria under section 
            12747(c) of this title are received within 12 months after 
            the funds become available for the direct reallocation with 
            priority going to applications for affordable housing within 
            the locality, and
                (ii) reallocate the remainder in accordance with section 
            12747(b) of this title.

        (D) Certain jurisdictions deemed to be participating 
                jurisdictions

            If a State or unit of general local government is meeting 
        the requirements of paragraphs (3), (4), and (5), it shall be 
        deemed to be a participating jurisdiction for purposes of 
        reallocation under this paragraph.

                           (7) Designation

        The Secretary shall designate an eligible jurisdiction to be a 
    participating jurisdiction as soon as its comprehensive housing 
    affordability strategy is approved in accordance with section 12705 
    of this title.

                     (8) Continuous designation

        Once a State or unit of general local government is designated a 
    participating jurisdiction, it shall remain a participating 
    jurisdiction for subsequent fiscal years, except as provided in 
    paragraph (9). The provisions of paragraphs (3) through (6) shall 
    not apply to participating jurisdictions.

                           (9) Revocation

        The Secretary may revoke a jurisdiction's designation as a 
    participating jurisdiction if--
            (A) the Secretary finds, after reasonable notice and 
        opportunity for hearing, that the jurisdiction is unwilling or 
        unable to carry out the provisions of this subchapter, or
            (B) the jurisdiction's allocation falls below $750,000 for 3 
        consecutive years, below $625,000 for 2 consecutive years, or 
        the jurisdiction does not receive a formula allocation of 
        $500,000 or more in any 1 year, except as provided in paragraph 
        (10).

    If a jurisdiction's designation as a participating jurisdiction is 
    revoked, any remaining line of credit in the jurisdiction's HOME 
    Investment Trust Fund established under section 12748 of this title 
    shall be reallocated in accordance with paragraph (6) of this 
    section.

                      (10) Threshold reduction

        If the amount appropriated pursuant to section 12724 of this 
    title for any fiscal year is less than $1,500,000,000, then this 
    section shall be applied during that year--
            (A) by substituting ``$500,000'' for ``$750,000'' both 
        places it appears in paragraph (3); and
            (B) by substituting ``$500,000'', ``$410,000'', and 
        ``$335,000'' for ``$750,000'', ``$625,000'', and ``$500,000'', 
        respectively, where they appear in paragraph (9).

(Pub. L. 101-625, title II, Sec. 216, Nov. 28, 1990, 104 Stat. 4103; 
Pub. L. 102-550, title II, Sec. 202(a), Oct. 28, 1992, 106 Stat. 3751.)


                               Amendments

    1992--Par. (3)(A). Pub. L. 102-550, Sec. 202(a)(1), substituted 
``Except as provided in paragraph (10), a jurisdiction'' for ``A 
jurisdiction''.
    Par. (9)(B). Pub. L. 102-550, Sec. 202(a)(2), inserted ``, except as 
provided in paragraph (10)'' after ``in any 1 year''.
    Par. (10). Pub. L. 102-550, Sec. 202(a)(3), added par. (10).


                    Effective Date of 1992 Amendment

    Amendment by Pub. L. 102-550 applicable to unexpended funds 
allocated under subchapter II of this chapter in fiscal year 1992, 
except as otherwise specifically provided, see section 223 of Pub. L. 
102-550, set out as a note under section 12704 of this title.


                    Applicability of Grant Thresholds

    Section 202(c) of Pub. L. 102-550 provided that: ``Notwithstanding 
any other provision of law, the grant thresholds provided for in section 
216 [42 U.S.C. 12746], as amended by this section, and the grant 
thresholds provided for in section 217(b) of the Cranston-Gonzalez 
National Affordable Housing Act [42 U.S.C. 12747(b)], as amended by this 
section, shall apply.''

                  Section Referred to in Other Sections

    This section is referred to in sections 12704, 12747, 12750 of this 
title.
