
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document affected by Public Law 106-569 Section 202]
[CITE: 42USC12805]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                CHAPTER 130--NATIONAL AFFORDABLE HOUSING
 
             SUBCHAPTER II--INVESTMENT IN AFFORDABLE HOUSING
 
                    Part D--Specified Model Programs
 
Sec. 12805. Sweat equity model program


(a) In general

    The Secretary shall make available a model program to provide grants 
to public and private nonprofit organizations and community housing 
development organizations to provide technical and supervisory 
assistance to low-income and very low-income families, including the 
homeless, in acquiring, rehabilitating, and constructing housing by the 
self-help housing method.

(b) Rehabilitation of properties

    The program shall target for rehabilitation properties which have 
been acquired by the Federal, State, or local governments.

(c) Homeownership opportunities through sweat equity

    (1) The program shall utilize the skilled or unskilled labor of 
eligible families in exchange for acquisition of the property.
    (2) Training shall be provided to eligible families in building and 
home maintenance skills.

(d) Rental opportunities through sweat equity

    (1) The program shall include rental opportunities for eligible 
families which will help expand the stock of affordable housing which is 
most appropriate for the target group.
    (2) The use of the tenant's skilled or unskilled labor shall be 
encouraged in lieu of or as a supplement to rent payments by the tenant.

(e) ``Self-help housing'' defined

    The term ``self-help housing'' means the same as in section 1490c of 
this title.

(f) Additional restrictions

    The guidelines for the model program shall generally comport with 
the additional protections and restrictions specified under section 
1490c of this title.

(Pub. L. 101-625, title II, Sec. 255, Nov. 28, 1990, 104 Stat. 4121.)


               Assistance for Self-Help Housing Providers

    Pub. L. 104-120, Sec. 11, Mar. 28, 1996, 110 Stat. 841, as amended 
by Pub. L. 105-276, title V, Sec. 599E(a), Oct. 21, 1998, 112 Stat. 
2663, provided that:
    ``(a) Grant Authority.--The Secretary of Housing and Urban 
Development may, to the extent amounts are available to carry out this 
section and the requirements of this section are met, make grants for 
use in accordance with this section to national and regional 
organizations and consortia that have experience in providing or 
facilitating self-help housing homeownership opportunities.
    ``(b) Goals and Accountability.--In making grants under this 
section, the Secretary shall take such actions as may be necessary to 
ensure that--
        ``(1) assistance provided under this section is used to 
    facilitate and encourage innovative homeownership opportunities 
    through the provision of self-help housing, under which the 
    homeowner contributes a significant amount of sweat equity toward 
    the construction of the new dwelling;
        ``(2) assistance provided under this section for land 
    acquisition and infrastructure development results in the 
    development of not less than 4,000 new dwellings;
        ``(3) the dwellings constructed in connection with assistance 
    provided under this section are quality dwellings that comply with 
    local building and safety codes and standards and are available at 
    prices below the prevailing market prices;
        ``(4) the provision of assistance under this section establishes 
    and fosters a partnership between the Federal Government and 
    organizations and consortia, resulting in efficient development of 
    affordable housing with minimal governmental intervention, limited 
    governmental regulation, and significant involvement by private 
    entities;
        ``(5) activities to develop housing assisted pursuant to this 
    section involve community participation in which volunteers assist 
    in the construction of dwellings; and
        ``(6) dwellings are developed in connection with assistance 
    under this section on a geographically diverse basis, which includes 
    areas having high housing costs, rural areas, and areas underserved 
    by other homeownership opportunities that are populated by low-
    income families unable to otherwise afford housing.
If, at any time, the Secretary determines that the goals under this 
subsection cannot be met by providing assistance in accordance with the 
terms of this section, the Secretary shall immediately notify the 
applicable Committees in writing of such determination and any proposed 
changes for such goals or this section.
    ``(c) National Competition.--The Secretary shall select 
organizations and consortia referred to in subsection (a) to receive 
grants through a national competitive process, which the Secretary shall 
establish.
    ``(d) Use.--
        ``(1) Purpose.--Amounts from grants made under this section, 
    including any recaptured amounts, shall be used only for eligible 
    expenses in connection with developing new decent, safe, and 
    sanitary nonluxury dwellings in the United States for families and 
    persons who otherwise would be unable to afford to purchase a 
    dwelling.
        ``(2) Eligible expenses.--For purposes of paragraph (1), the 
    term `eligible expenses' means costs only for the following 
    activities:
            ``(A) Land acquisition.--Acquiring land (including financing 
        and closing costs).
            ``(B) Infrastructure improvement.--Installing, extending, 
        constructing, rehabilitating, or otherwise improving utilities 
        and other infrastructure.
    Such term does not include any costs for the rehabilitation, 
    improvement, or construction of dwellings.
    ``(e) Establishment of Grant Fund.--
        ``(1) In general.--Any amounts from any grant made under this 
    section shall be deposited by the grantee organization or consortium 
    in a fund that is established by such organization or consortium for 
    such amounts, administered by such organization or consortium, and 
    available for use only for the purposes under subsection (d). Any 
    interest, fees, or other earnings of the fund shall be deposited in 
    the fund and shall be considered grant amounts for purposes of this 
    section.
        ``(2) Assistance to affiliates.--Any organization or consortia 
    that receives a grant under this section may use amounts in the fund 
    established for such organization or consortia pursuant to paragraph 
    (1) for the purposes under subsection (d) by providing assistance 
    from the fund to local affiliates of such organization or consoria. 
    [sic]
    ``(f) Requirements for Assistance.--The Secretary may make a grant 
to an organization or consortium under subsection (a) only pursuant to--
        ``(1) an expression of interest by such organization or 
    consortia to the Secretary for a grant for such purposes;
        ``(2) a determination by the Secretary that the organization or 
    consortia has the capability and has obtained financial commitments 
    (or has the capacity to obtain financial commitments) necessary to--
            ``(A) develop not less than 30 dwellings in connection with 
        the grant amounts; and
            ``(B) otherwise comply with a grant agreement under 
        subsection (i); and
        ``(3) a grant agreement entered into under subsection (i).
    ``[(g) Repealed. Pub. L. 105-276, title V, Sec. 599E(a)(6), Oct. 21, 
1998, 112 Stat. 2664.]
    ``(h) Geographical Diversity.--In making grants under subsection 
(a), the Secretary shall ensure that grants are provided and grant 
amounts are used in a manner that results in national geographic 
diversity among housing developed using grant amounts under this 
section.
    ``(i) Grant Agreement.--A grant under this section shall be made 
only pursuant to a grant agreement entered into by the Secretary and the 
organization or consortia receiving the grant, which shall--
        ``(1) require such organization or consortia to use grant 
    amounts only as provided in this section;
        ``(2) provide for the organization or consortia to develop a 
    specific and reasonable number of dwellings using the grant amounts, 
    which number shall be established taking into consideration costs 
    and economic conditions in the areas in which the dwellings will be 
    developed, but in no case shall be less than 30;
        ``(3) require the organization or consortia to use the grant 
    amounts in a manner that leverages other sources of funding (other 
    than grants under this section), including private or public funds, 
    in developing the dwellings;
        ``(4) require the organization or consortia to comply with the 
    other provisions of this section;
        ``(5) provide that if the organization or consortia has not used 
    any grant amounts within 24 months after such amounts are first 
    disbursed to the organization or consortia (or, in the case of grant 
    amounts from amounts made available for fiscal year 1996 to carry 
    out this section, within 36 months), the Secretary shall recapture 
    such unused amounts; and
        ``(6) contain such other terms as the Secretary may require to 
    provide for compliance with subsection (b) and the requirements of 
    this section.
    ``(j) Fulfillment of Grant Agreement.--If the Secretary determines 
that an organization or consortia awarded a grant under this section has 
not, within 24 months after grant amounts are first made available to 
the organization or consortia (or, in the case of grant amounts from 
amounts made available for fiscal year 1996 to carry out this section, 
within 36 months), substantially fulfilled the obligations under the 
grant agreement, including development of the appropriate number of 
dwellings under the agreement, the Secretary shall use any such 
undisbursed amounts remaining from such grant for other grants in 
accordance with this section.
    ``(k) Records and Audits.--During the period beginning upon the 
making of a grant under this section and ending upon close-out of the 
grant under subsection (l)--
        ``(1) the organization awarded the grant shall keep such records 
    and adopt such administrative practices as the Secretary may require 
    to ensure compliance with the provisions of this section and the 
    grant agreement; and
        ``(2) the Secretary and the Comptroller General of the United 
    States, and any of their duly authorized representatives, shall have 
    access for the purpose of audit and examination to any books, 
    documents, papers, and records of the grantee organization or 
    consortia and its affiliates that are pertinent to the grant made 
    under this section.
    ``(l) Close-Out.--The Secretary shall close out a grant made under 
this section upon determining that the aggregate amount of any 
assistance provided from the fund established under subsection (e)(1) by 
the grantee organization or consortium exceeds the amount of the grant. 
For purposes of this paragraph, any interest, fees, and other earnings 
of the fund shall be excluded from the amount of the grant.
    ``(m) Environmental Review.--A grant under this section shall be 
considered to be funds for a special project for purposes of section 
305(c) of the Multifamily Housing Property Disposition Reform Act of 
1994 [42 U.S.C. 3547].
    ``(n) Report to Congress.--Not later than 90 days after close-out of 
all grants under this section is completed, the Secretary shall submit a 
report to the applicable Committees describing the grants made under 
this section, the grantees, the housing developed in connection with the 
grant amounts, and the purposes for which the grant amounts were used.
    ``(o) Definitions.--For purposes of this section, the following 
definitions shall apply:
        ``(1) Applicable committees.--The term `applicable Committees' 
    means the Committee on Banking and Financial Services of the House 
    of Representatives and the Committee on Banking, Housing, and Urban 
    Affairs of the Senate.
        ``(2) Secretary.--The term `Secretary' means the Secretary of 
    Housing and Urban Development.
        ``(3) United states.--The term `United States' includes the 
    States of the United States, the District of Columbia, the 
    Commonwealth of Puerto Rico, the Commonwealth of the Northern 
    Mariana Islands, Guam, the Virgin Islands, American Samoa, and any 
    other territory or possession of the United States.
    ``(p) Authorization of Appropriations.--To carry out this section, 
there are authorized to be appropriated for fiscal years 1999 and 2000 
such sums as may be necessary.
    ``(q) Regulations.--The Secretary shall issue any final regulations 
necessary to carry out this section not later than 30 days after the 
date of the enactment of this Act [Mar. 28, 1996]. The regulations shall 
take effect upon issuance and may not exceed, in length, 5 full pages in 
the Federal Register.''
    [Pub. L. 105-276, title V, Sec. 599E(b), Oct. 21, 1998, 112 Stat. 
2664, provided that: ``Notwithstanding the amendments made by subsection 
(a) [amending section 11 of Pub. L. 104-120, set out above], any grant 
under section 11 of the Housing Opportunity Program Extension Act of 
1996 [Pub. L. 104-120] (42 U.S.C. 12805 note) from amounts appropriated 
in fiscal year 1998 or any prior fiscal year shall be governed by the 
provisions of such section 11 as in effect immediately before the 
enactment of this Act [Oct. 21, 1998], except that the amendments made 
by paragraphs (8) and (9) of subsection (a) of this section shall apply 
to such grants.'']
    [Pub. L. 105-276, title V, Sec. 599E(c), Oct. 21, 1998, 112 Stat. 
2664, provided that: ``This section [amending section 11 of Pub. L. 104-
120, set out above, and enacting provisions set out as a note above] 
shall take effect, and the amendments made by this section are made on, 
and shall apply beginning upon, the date of the enactment of this Act 
[Oct. 21, 1998].'']


  Funding for Self-Help Housing Assistance, National Cities in Schools 
 Community Development Program, and Capacity Building Through National 
                    Community Development Initiative

    Pub. L. 104-120, Sec. 12, Mar. 28, 1996, 110 Stat. 845, provided 
that:
    ``(a) Authority to Use Assisted Housing Amounts.--To the extent and 
for the purposes specified in subsection (b), the Secretary of Housing 
and Urban Development may use amounts in the account of the Department 
of Housing and Urban Development known as the Annual Contributions for 
Assisted Housing account, but only such amounts which--
        ``(1) have been appropriated for a fiscal year that occurs 
    before the fiscal year for which the Secretary uses the amounts; and
        ``(2) have been obligated before becoming available for use 
    under this section.
    ``(b) Fiscal Year 1996.--Of the amounts described in subsection (a), 
$60,000,000 shall be available to the Secretary of Housing and Urban 
Development for fiscal year 1996 in the following amounts for the 
following purposes:
        ``(1) Self-help housing assistance.--$40,000,000 for carrying 
    out section 11 of this Act [set out above].
        ``(2) National cities in schools community development 
    program.--$10,000,000 for carrying out section 930 of the Housing 
    and Community Development Act of 1992 (Public Law 102-550; 106 Stat. 
    3887).
        ``(3) Capacity building through national community development 
    initiative.--$10,000,000 for carrying out section 4 of the HUD 
    Demonstration Act of 1993 (42 U.S.C. 9816 note).''
