
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: 42USC12873]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                CHAPTER 130--NATIONAL AFFORDABLE HOUSING
 
 SUBCHAPTER IV--HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE FAMILY 
                                  HOMES
 
           Part A--HOPE for Homeownership of Multifamily Units
 
Sec. 12873. Implementation grants


(a) Grants

    The Secretary is authorized to make implementation grants to 
applicants for the purpose of carrying out homeownership programs 
approved under this part.

(b) Eligible activities

    Implementation grants may be used for activities to carry out 
homeownership programs (including programs for cooperative ownership), 
including the following activities:
        (1) Architectural and engineering work.
        (2) Acquisition of the eligible property for the purpose of 
    transferring ownership to eligible families in accordance with a 
    homeownership program that meets the requirements under this part.
        (3) Rehabilitation of any property covered by the homeownership 
    program, in accordance with standards established by the Secretary.
        (4) Abatement of lead-based paint hazards, as required by 
    section 4822(a) of this title.
        (5) Administrative costs of the applicant, which may not exceed 
    15 percent of the amount of the assistance provided under this 
    section.
        (6) Development of resident management corporations and resident 
    management councils, but only if the applicant has not received 
    assistance under section 12872 \1\ of this title for such 
    activities.
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    \1\ See References in Text note below.
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        (7) Counseling and training of homebuyers and homeowners under 
    the homeownership program.
        (8) Relocation of tenants who elect to move.
        (9) Any necessary temporary relocation of tenants during 
    rehabilitation.
        (10) Planning for establishment of for- or not-for-profit small 
    businesses by or on behalf of residents, job training, and other 
    activities that promote economic self-sufficiency of homebuyers and 
    homeowners of the property covered by the homeownership program and 
    economic development of the neighborhood.
        (11) Funding of operating expenses and replacement reserves of 
    the property covered by the homeownership program.
        (12) Legal fees.
        (13) Defraying costs for the ongoing training needs of the 
    recipient that are related to developing and carrying out the 
    homeownership program.
        (14) Economic development activities that promote economic self-
    sufficiency of homebuyers, residents, and homeowners under the 
    homeownership program.

(c) Matching funding

                           (1) In general

        Each recipient shall assure that contributions equal to not less 
    than 33 percent of the grant amounts made available under this 
    section, excluding any amounts provided for post-sale operating 
    expense, shall be provided from non-Federal sources to carry out the 
    homeownership program.

                              (2) Form

        Such contributions may be in the form of--
            (A) 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;
            (B) payment of administrative expenses, as defined by the 
        Secretary, from non-Federal resources, including funds from a 
        grant made under section 5306(b) or section 5306(d) of this 
        title;
            (C) the value of taxes, fees, or other charges that are 
        normally and customarily imposed but are waived, foregone, or 
        deferred in a manner that facilitates the implementation of a 
        homeownership program assisted under this part;
            (D) the value of land or other real property as appraised 
        according to procedures acceptable to the Secretary;
            (E) the value of investment in on-site and off-site 
        infrastructure required for a homeownership program assisted 
        under this part; or
            (F) such other in-kind contributions as the Secretary may 
        approve.

    Contributions for administrative expenses shall be recognized only 
    up to an amount equal to 7 percent of the total amount of grants 
    made available under this section.

(d) \2\ Application
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    \2\ So in original. Two subsecs. (d) have been enacted.
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                       (1) Form and procedure

        An application for an implementation grant shall be submitted by 
    an applicant in such form and in accordance with such procedures as 
    the Secretary shall establish.

                      (2) Minimum requirements

        The Secretary shall require that an application contain at a 
    minimum--
            (A) a request for an implementation grant, specifying the 
        amount of the grant requested and its proposed uses;
            (B) if applicable, an application for assistance under 
        section 1437f of this title, specifying the proposed uses of 
        such assistance and the period during which the assistance will 
        be needed;
            (C) a description of the qualifications and experience of 
        the applicant in providing low-income housing;
            (D) a description of the proposed homeownership program, 
        consistent with section 12874 \3\ of this title and the other 
        requirements of this part, specifying the activities proposed to 
        be carried out and their estimated costs, identifying reasonable 
        schedules for carrying it out, and demonstrating the program 
        will comply with the affordability requirements under section 
        12874(b) \3\ of this title;
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    \3\ See References in Text note below.
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            (E) identification and description of the property involved, 
        and a description of the composition of the tenants, including 
        family size and income;
            (F) a description of and commitment for the resources that 
        are expected to be made available to provide the matching 
        funding required under subsection (c) of this section and of 
        other resources that are expected to be made available in 
        support of the homeownership program;
            (G) identification and description of the financing proposed 
        for any (i) rehabilitation and (ii) acquisition (I) of the 
        property, by an entity for transfer to eligible families, and 
        (II) by eligible families of ownership interests in, or shares 
        representing, units in the project;
            (H) the proposed sales price, the basis for such price 
        determination, and terms to an entity, if any, that will 
        purchase the property for resale to eligible families;
            (I) the proposed sales prices, if any, and terms to eligible 
        families;
            (J) any proposed restrictions on the resale of units under a 
        homeownership program;
            (K) identification and description of the entity that will 
        operate and manage the property;
            (L) a certification by the public official responsible for 
        submitting the comprehensive housing affordability strategy 
        under section 12705 of this title that the proposed activities 
        are consistent with the approved housing strategy of the State 
        or unit of general local government within which the project is 
        located (or, during the first 12 months after November 28, 1990, 
        that the application is consistent with such other existing 
        State or local housing plan or strategy that the Secretary shall 
        determine to be appropriate); and
            (M) a certification that the applicant will comply with the 
        requirements of the Fair Housing Act [42 U.S.C. 3601 et seq.], 
        title VI of the Civil Rights Act of 1964 [42 U.S.C. 2000d et 
        seq.], section 504 of the Rehabilitation Act of 1973 [29 U.S.C. 
        794], and the Age Discrimination Act of 1975 [42 U.S.C. 6101 et 
        seq.], and will affirmatively further fair housing.

(d) \4\ Selection criteria
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    \4\ So in original. Two subsecs. (d) have been enacted.
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    The Secretary shall establish selection criteria for assistance 
under this section, which shall include--
        (1) the qualifications or potential capabilities of the 
    applicant;
        (2) the feasibility of the homeownership program;
        (3) the extent of tenant interest in the development of a 
    homeownership program for the property;
        (4) the potential for developing an affordable homeownership 
    program and the suitability of the property for homeownership;
        (5) national geographic diversity among housing for which 
    applicants are selected to receive assistance;
        (6) the extent to which a sufficient supply of affordable rental 
    housing of the type assisted under this title \5\ exists in the 
    locality, so that the implementation of the homeownership program 
    will not appreciably reduce the number of such rental units 
    available to residents currently residing in such units or eligible 
    for residency in such units; and
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    \5\ See References in Text note below.
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        (7) such other factors as the Secretary determines to be 
    appropriate for purposes of carrying out the program established by 
    the \6\ part in an effective and efficient manner.
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    \6\ So in original. Probably should be ``this''.
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(e) Approval

    The Secretary shall notify each applicant, not later than 6 months 
after the date of the submission of the application, whether the 
application is approved or not approved. The Secretary may approve the 
application for an implementation grant with a statement that the 
application for the section 8 [42 U.S.C. 1437f] assistance for residents 
of the project not purchasing units is conditionally approved, subject 
to the availability of appropriations in subsequent fiscal years.

(Pub. L. 101-625, title IV, Sec. 423, Nov. 28, 1990, 104 Stat. 4163; 
Pub. L. 102-550, title X, Sec. 1012(i)(2), Oct. 28, 1992, 106 Stat. 
3906.)

                       References in Text

    Section 12872 of this title, referred to in subsec. (b)(6), was in 
the original ``section 322'' and was translated as reading ``section 
422'', meaning section 422 of Pub. L. 101-625, to reflect the probable 
intent of Congress. Section 322 of Pub. L. 101-625 amended section 1708 
of Title 12, Banks and Banking.
    Section 12874 of this title and section 12874(b) of this title, 
referred to in subsec. (d)(2)(D), were in the original ``section 324'' 
and ``section 324(b)'', respectively, and were translated as reading 
``section 424'' and ``section 424(b)'', respectively, meaning section 
424 of Pub. L. 101-625, to reflect the probable intent of Congress. 
Section 324 of Pub. L. 101-625, which proposed an amendment to section 
1709 of Title 12, never took effect pursuant to section 351 of Pub. L. 
101-625. Such section 324 did not contain a subsec. (b).
    The Fair Housing Act, referred to in subsec. (d)(2)(M), is title 
VIII of Pub. L. 90-284, Apr. 11, 1968, 82 Stat. 81, as amended, which is 
classified principally to subchapter I (Sec. 3601 et seq.) of chapter 45 
of this title. For complete classification of this Act to the Code, see 
Short Title note set out under section 3601 of this title and Tables.
    The Civil Rights Act of 1964, referred to in subsec. (d)(2)(M), is 
Pub. L. 88-352, July 2, 1964, 78 Stat. 241, as amended. Title VI of the 
Act is classified generally to subchapter V (Sec. 2000d et seq.) of 
chapter 21 of this title. For complete classification of this Act to the 
Code, see Short Title note set out under section 2000a of this title and 
Tables.
    The Age Discrimination Act of 1975, referred to in subsec. 
(d)(2)(M), is title III of Pub. L. 94-135, Nov. 28, 1975, 89 Stat. 728, 
as amended, which is classified generally to chapter 76 (Sec. 6101 et 
seq.) of this title. For complete classification of this Act to the 
Code, see Short Title note set out under section 6101 of this title and 
Tables.
    This title, referred to in subsec. (d)(6), means title IV of Pub. L. 
101-625, known as the Homeownership and Opportunity Through HOPE Act, 
and probably should have been ``this subtitle'', meaning subtitle B 
(Secs. 421-431) of title IV of Pub. L. 101-625, which is classified 
principally to this part. For complete classification of title IV of 
Pub. L. 101-625 to the Code, see Short Title note set out under section 
1437aaa of this title and Tables.


                               Amendments

    1992--Subsec. (b)(4) to (14). Pub. L. 102-550 added par. (4) and 
redesignated former pars. (4) to (13) as (5) to (14), respectively.

                  Section Referred to in Other Sections

    This section is referred to in section 12875 of this title.
