
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC12771]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                CHAPTER 130--NATIONAL AFFORDABLE HOUSING
 
             SUBCHAPTER II--INVESTMENT IN AFFORDABLE HOUSING
 
                  Part B--Community Housing Partnership
 
Sec. 12771. Set-aside for community housing development 
        organizations
        

(a) In general

    For a period of 24 months after funds under part A of this 
subchapter are made available to a jurisdiction, the jurisdiction shall 
reserve not less than 15 percent of such funds for investment only in 
housing to be developed, sponsored, or owned by community housing 
development organizations. Each participating jurisdiction shall make 
reasonable efforts to identify community housing development 
organizations that are capable or can reasonably be expected to become 
capable of carrying out elements of the jurisdiction's housing strategy 
and to encourage such community housing development organizations to do 
so. If during the first 24 months of its participation under this 
subchapter, a participating jurisdiction is unable to identify a 
sufficient number of capable community housing development 
organizations, then up to 20 percent of the funds allocated to that 
jurisdiction under this section, but not to exceed $150,000, may be made 
available to carry out activities that develop the capacity of community 
housing development organizations in that jurisdiction. A participating 
jurisdiction is authorized to enter into contracts with community 
housing development organizations to carry out this section.

(b) Recapture and reuse

    If any funds reserved under subsection (a) of this section remain 
uninvested for a period of 24 months, then the Secretary shall deduct 
such funds from the line of credit in the participating jurisdiction's 
HOME Investment Trust Fund and make such funds available by direct 
reallocation (1) to other participating jurisdictions for affordable 
housing developed, sponsored or owned by community housing development 
organizations, or (2) to nonprofit intermediary organizations to carry 
out activities that develop the capacity of community housing 
development organizations consistent with section 12773 of this title, 
with preference to community housing development organizations serving 
the jurisdiction from which the funds were recaptured.

(c) Direct reallocation criteria

    Insofar as practicable, direct reallocations under this section 
shall be made according to the selection criteria established under 
section 12747(c) of this title.

(Pub. L. 101-625, title II, Sec. 231, Nov. 28, 1990, 104 Stat. 4114; 
Pub. L. 102-550, title II, Sec. 212(a), (b), Oct. 28, 1992, 106 Stat. 
3757.)


                               Amendments

    1992--Subsec. (a). Pub. L. 102-550 substituted ``24'' for ``18'' in 
first sentence and inserted after second sentence ``If during the first 
24 months of its participation under this subchapter, a participating 
jurisdiction is unable to identify a sufficient number of capable 
community housing development organizations, then up to 20 percent of 
the funds allocated to that jurisdiction under this section, but not to 
exceed $150,000, may be made available to carry out activities that 
develop the capacity of community housing development organizations in 
that jurisdiction.''
    Subsec. (b). Pub. L. 102-550, Sec. 212(a), substituted ``24'' for 
``18''.


                    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.

                  Section Referred to in Other Sections

    This section is referred to in section 12772 of this title.
