
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: 42USC12894]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                CHAPTER 130--NATIONAL AFFORDABLE HOUSING
 
 SUBCHAPTER IV--HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE FAMILY 
                                  HOMES
 
          Part B--HOPE for Homeownership of Single Family Homes
 
Sec. 12894. Homeownership program requirements


(a) In general

    A homeownership program under this part shall provide for 
acquisition by eligible families of ownership interests in, or shares 
representing, units in an eligible property under any arrangement 
determined by the Secretary to be appropriate, such as cooperative 
ownership (including limited equity cooperative ownership) and fee 
simple ownership (including condominium ownership), for occupancy by the 
eligible families.

(b) Affordability

    A homeownership program under this part shall provide for the 
establishment of sales prices (including principal, insurance, taxes, 
and interest and closing costs) for initial acquisition of the property, 
and for sales to eligible families, such that the eligible family shall 
not be required to expend more than 30 percent of the adjusted income of 
the family per month to complete a sale under the homeownership program.

(c) Eligible property

    A property may not participate in a homeownership program under this 
part unless all tenants or occupants of the property (at the time of \1\ 
the application for the implementation grant covering the property is 
filed with the Secretary) participate in the homeownership program.
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    \1\ So in original. The word ``of'' probably should not appear.
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(d) Plan

    A homeownership program under this part shall provide, and include a 
plan, for--
        (1) identifying and selecting eligible families to participate 
    in the homeownership program;
        (2) providing relocation assistance to families who elect to 
    move; and
        (3) ensuring continued affordability of the property to 
    homebuyers and homeowners.

(e) Housing quality standards

    The application shall include a plan ensuring that the unit--
        (1) will be free from any defects that pose a danger to health 
    or safety before transfer of an ownership interest in, or shares 
    representing, a unit to an eligible family; and
        (2) will, not later than 2 years after the transfer to an 
    eligible family, meet minimum housing standards established by the 
    Secretary for the purpose of this title.\2\
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    \2\ So in original. See References in Text note below.
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(f) Preference for acquisition of vacant units

    Each homeownership program under this part shall provide that, in 
making vacant units in eligible properties available for acquisition by 
eligible families, preference shall be given to eligible families who 
reside in public or Indian housing.

(Pub. L. 101-625, title IV, Sec. 444, Nov. 28, 1990, 104 Stat. 4176; 
Pub. L. 102-550, title I, Sec. 181(f), Oct. 28, 1992, 106 Stat. 3736.)

                       References in Text

    This title, referred to in subsec. (e)(2), is title IV of Pub. L. 
101-625, Nov. 28, 1990, 104 Stat. 4148, known as the Homeownership and 
Opportunity Through HOPE Act, which enacted this subchapter and 
subchapter II-A (Sec. 1437aaa et seq.) of chapter 8 of this title, 
amended sections 1437c, 1437f, 1437l, 1437p, 1437r, and 1437s of this 
title and section 1709 of Title 12, Banks and Banking, and enacted 
provisions set out as notes under sections 1437c, 1437aa, and 1437aaa of 
this title. For complete classification of title IV to the Code, see 
Short Title note set out under section 1437aaa of this title and Tables.


                               Amendments

    1992--Subsec. (f). Pub. L. 102-550 added subsec. (f).

                  Section Referred to in Other Sections

    This section is referred to in section 12893 of this title.
