
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: 42USC12750]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                CHAPTER 130--NATIONAL AFFORDABLE HOUSING
 
             SUBCHAPTER II--INVESTMENT IN AFFORDABLE HOUSING
 
                  Part A--HOME Investment Partnerships
 
Sec. 12750. Matching requirements


(a) Contribution

    Each participating jurisdiction shall make contributions to housing 
that qualifies as affordable housing under this subchapter that total, 
throughout a fiscal year, not less than 25 percent of the funds drawn 
from the jurisdiction's HOME Investment Trust Fund in such fiscal year. 
Such contributions shall be in addition to any amounts made available 
under section 12746(3)(A)(ii) of this title.

(b) Recognition

                           (1) In general

        A contribution shall be recognized for purposes of subsection 
    (a) of this section only if it--
            (A) is made with respect to housing that qualifies as 
        affordable housing under section 12745 of this title; or
            (B) is made with respect to any portion of a project not 
        less than 50 percent of the units of which qualify as affordable 
        housing under section 12745 of this title.

                     (2) Administrative expenses

        Contributions for administrative expenses may not be recognized 
    for purposes of subsection (a) of this section.

(c) Form

    Such contributions may be in the form of--
        (1) 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;
        (2) the value of taxes, fees, or other charges that are normally 
    and customarily imposed but are waived, foregone, or deferred in a 
    manner that achieves affordability of housing assisted under this 
    subchapter;
        (3) the value of land or other real property as appraised 
    according to procedures acceptable to the Secretary;
        (4) the value of investment in on-site and off-site 
    infrastructure directly required for affordable housing assisted 
    under this subchapter;
        (5) Redesignated (4)
        (6) up to--
            (A) 50 percent of proceeds from bond financing validly 
        issued by a State or local government, agency or instrumentality 
        thereof, or political subdivision thereof, and repayable with 
        revenues derived from a multifamily affordable housing project 
        financed, and
            (B) 25 percent of proceeds from bond financing validly 
        issued by a State or local government, agency or instrumentality 
        thereof, or political subdivision thereof, and repayable with 
        revenues derived from a single-family project financed,

    but not more than 25 percent of the contribution required under 
    subsection (a) of this section may be derived from these sources;
        (7) the reasonable value of any site-preparation and 
    construction materials and any donated or voluntary labor in 
    connection with the site-preparation for, or construction or 
    rehabilitation of, affordable housing; and
        (8) such other contributions to affordable housing as the 
    Secretary considers appropriate.

(d) Reduction of requirement

                           (1) In general

        The Secretary shall reduce the matching requirement under 
    subsection (a) of this section with respect to any funds drawn from 
    a jurisdiction's HOME Investment Trust Fund Account during a fiscal 
    year by--
            (A) 50 percent for a jurisdiction that certifies that it is 
        in fiscal distress; and
            (B) 100 percent for a jurisdiction that certifies that it is 
        in severe fiscal distress.

                           (2) Definitions

        For purposes of this section--
            (A) ``fiscal distress'' means a jurisdiction other than a 
        State that satisfies 1 of the distress criteria set forth in 
        paragraph (3); and
            (B) ``severe fiscal distress'' means a jurisdiction other 
        than a State that satisfies both of the distress criteria set 
        forth in paragraph (3).

                        (3) Distress criteria

        For purposes of a jurisdiction other than a State certifying 
    that it is distressed, the following criteria shall apply:

        (A) Poverty rate

            The average poverty rate in the jurisdiction for the 
        calendar year immediately preceding the year in which its fiscal 
        year begins was equal to or greater than 125 percent of the 
        average national poverty rate during such calendar year (as 
        determined according to information of the Bureau of the 
        Census).

        (B) Per capita income

            The average per capita income in the jurisdiction for the 
        calendar year immediately preceding the year in which its fiscal 
        year begins was less than 75 percent of the average national per 
        capita income during such calendar year (as determined according 
        to information of the Bureau of the Census).

                             (4) States

        In determining the degree to which a jurisdiction that is a 
    State is distressed, the Secretary shall take into consideration the 
    State's fiscal capacity and expenditure needs as determined by a 
    national organization which compiles the relevant data.

                    (5) Waiver in disaster areas

        If a participating jurisdiction is located in an area in which a 
    declaration of a disaster pursuant to the Robert T. Stafford 
    Disaster Relief and Emergency Assistance Act [42 U.S.C. 5121 et 
    seq.] is in effect for any part of a fiscal year, the Secretary may 
    reduce the matching requirement for that fiscal year under 
    subsection (a) of this section with respect to any funds drawn from 
    a jurisdiction's HOME Investment Trust Fund Account during that 
    fiscal year by up to 100 percent.

(Pub. L. 101-625, title II, Sec. 220, Nov. 28, 1990, 104 Stat. 4111; 
Pub. L. 102-550, title II, Secs. 207(c), 210(a)-(c), Oct. 28, 1992, 106 
Stat. 3753, 3755; Pub. L. 103-233, title II, Sec. 204, Apr. 11, 1994, 
108 Stat. 364.)

                       References in Text

    The Robert T. Stafford Disaster Relief and Emergency Assistance Act, 
referred to in subsec. (d)(5), is Pub. L. 93-288, May 22, 1974, 88 Stat. 
143, as amended, which is classified principally to chapter 68 
(Sec. 5121 et seq.) of this title. For complete classification of this 
Act to the Code, see Short Title note set out under section 5121 of this 
title and Tables.


                               Amendments

    1994--Subsec. (a). Pub. L. 103-233 amended heading and text of 
subsec. (a) generally. Prior to amendment, text read as follows: ``Each 
participating jurisdiction shall make contributions to housing that 
qualifies as affordable housing under this subchapter that total, 
throughout a fiscal year, not less than--
        ``(1) 25 percent of the total funds drawn from the 
    jurisdiction's HOME Investment Trust Fund in that fiscal year with 
    respect to rental assistance, housing rehabilitation and substantial 
    rehabilitation; and
        ``(2) 30 percent of the total funds drawn from the 
    jurisdiction's HOME Investment Trust Fund in that fiscal year with 
    respect to new construction.
Such contributions shall be in addition to any amounts made available 
under section 12746(3)(A)(ii) of this title.''
    1992--Subsec. (a). Pub. L. 102-550, Sec. 210(a)(4), substituted 
``housing that qualifies as affordable housing under this subchapter'' 
for ``affordable housing assisted under this subchapter'' in 
introductory provisions.
    Subsec. (a)(1). Pub. L. 102-550, Sec. 210(a)(1), substituted ``, 
housing rehabilitation and substantial rehabilitation; and'' for ``and 
housing rehabilitation;''.
    Subsec. (a)(2). Pub. L. 102-550, Sec. 210(a)(2), substituted ``30'' 
for ``33'' and ``new construction.'' for ``substantial rehabilitation; 
and''.
    Subsec. (a)(3). Pub. L. 102-550, Sec. 210(a)(3), struck out par. (3) 
which read as follows: ``50 percent of the total funds drawn from the 
jurisdiction's HOME Investment Trust Fund in that fiscal year with 
respect to new construction.''
    Subsec. (b)(2). Pub. L. 102-550, Sec. 207(c)(1), substituted ``may 
not be recognized for purposes of subsection (a) of this section'' for 
``shall be recognized only up to an amount equal to 7 percent of funds 
provided for investment under this subchapter''.
    Subsec. (c)(2). Pub. L. 102-550, Sec. 207(c)(2), redesignated par. 
(3) as (2) and struck out former par. (2) which read as follows: 
``payment of administrative expenses, as defined by the Secretary, from 
non-Federal resources, which may include funds from a grant made under 
section 5306(b) or section 5306(d) of this title;''.
    Subsec. (c)(3). Pub. L. 102-550, Sec. 210(b)(1), which directed the 
striking of ``and'' at end of par. (4), was executed by striking ``and'' 
at end of par. (3) to reflect the probable intent of Congress and the 
redesignation of par. (4) as (3). See below.
    Pub. L. 102-550, Sec. 207(c)(2)(B), redesignated par. (4) as (3). 
Former par. (3) redesignated (2).
    Subsec. (c)(4). Pub. L. 102-550, Sec. 210(b)(2), which directed the 
substitution of a semicolon for the period at end of par. (5), was 
executed by making the substitution at end of par. (4) to reflect the 
probable intent of Congress and the redesignation of par. (5) as (4). 
See below.
    Pub. L. 102-550, Sec. 207(c)(2)(B), redesignated par. (5) as (4). 
Former par. (4) redesignated (3).
    Subsec. (c)(5). Pub. L. 102-550, Sec. 207(c)(2)(B), redesignated 
par. (5) as (4).
    Subsec. (c)(6) to (8). Pub. L. 102-550, Sec. 210(b)(3), added pars. 
(6) to (8).
    Subsec. (d). Pub. L. 102-550, Sec. 210(c), added subsec. (d) and 
struck out former subsec. (d) which read as follows: ``If a jurisdiction 
demonstrates to the satisfaction of the Secretary that a reduction of 
the matching requirement specified in subsection (a) of this section is 
necessary to permit the jurisdiction to carry out the purposes of this 
subchapter, the Secretary may reduce the matching requirement during a 
period not to exceed 3 years after the jurisdiction is first designated 
as a participating jurisdiction. Such reduction shall be not more than 
75 percent in the first year, not more than 50 percent in the second 
year, and not more than 25 percent in the third year.''


                    Effective Date of 1994 Amendment

    Amendment by Pub. L. 103-233 applicable with respect to any amounts 
made available to carry out this subchapter after Apr. 11, 1994, and any 
amounts made available to carry out this subchapter before that date 
that remain uncommitted on that date, with Secretary to issue any 
regulations necessary to carry out such amendment not later than end of 
45-day period beginning on that date, see section 209 of Pub. L. 103-
233, set out as a note under section 5301 of this title.


                    Effective Date of 1992 Amendment

    Section 210(d) of Pub. L. 102-550 provided that: ``The amendments 
made by this section [amending this section] shall apply with respect to 
fiscal year 1993 and each fiscal year thereafter.''
    Amendment by section 207(c) of 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.

                  Section Referred to in Other Sections

    This section is referred to in sections 1437aaa-2, 12747 of this 
title.
