
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: 42USC12898a]

 
                 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. 12898a. Enterprise zone homeownership opportunity grants


(a) Statement of purpose

    It is the purpose of this section--
        (1) to encourage homeownership by families in the United States 
    who are not otherwise able to afford homeownership;
        (2) to encourage the redevelopment of economically depressed 
    areas; and
        (3) to provide better housing opportunities in federally 
    approved and equivalent State-approved enterprise zones.

(b) Definitions

    For purposes of this section the following definitions shall apply:

                              (1) Home

        The term ``home'' means any 1- to 4-family dwelling. Such term 
    includes any dwelling unit in a condominium project or cooperative 
    project consisting of not more than 4 dwelling units, any town 
    house, and any manufactured home.

                  (2) Metropolitan statistical area

        The term ``metropolitan statistical area'' means a metropolitan 
    statistical area as established by the Office of Management and 
    Budget.

                     (3) Nonprofit organization

        The term ``nonprofit organization'' means a private nonprofit 
    corporation, or other private nonprofit legal entity, that is 
    approved by the Secretary as to financial responsibility.

                            (4) Secretary

        The term ``Secretary'' means the Secretary of Housing and Urban 
    Development.

                              (5) State

        The term ``State'' means each of the several States, the 
    District of Columbia, the Commonwealth of Puerto Rico, the Virgin 
    Islands, Guam, American Samoa, the Northern Mariana Islands, the 
    Trust Territory of the Pacific Islands, and any other territory or 
    possession of the United States.

                (6) Unit of general local government

        The term ``unit of general local government'' means any borough, 
    city, county, parish, town, township, village, or other general 
    purpose political subdivision of a State.

(c) Assistance to nonprofit organizations

                           (1) In general

        The Secretary may provide assistance to nonprofit organizations 
    to carry out enterprise zone homeownership opportunity programs to 
    promote homeownership in federally approved and equivalent State-
    approved enterprise zones in accordance with the provisions of this 
    section. Such assistance shall be made in the form of grants.

                          (2) Applications

        Applications for assistance under this section shall be made in 
    such form, and in accordance with such procedures, as the Secretary 
    may prescribe.

(d) Eligible uses of assistance

                           (1) In general

        Any nonprofit organization receiving assistance under this 
    section shall use such assistance to provide loans to families 
    purchasing homes constructed or rehabilitated in accordance with an 
    enterprise zone homeownership opportunity program approved under 
    this section.

                      (2) Specific requirements

        Each loan made to a family under this subsection shall--
            (A) be secured by a second mortgage held by the Secretary on 
        the property involved;
            (B) be in an amount not exceeding $15,000;
            (C) bear no interest; and
            (D) be repayable to the Secretary upon the sales, lease, or 
        other transfer of such property.

(e) Program requirements

                           (1) In general

        Assistance provided under this section may be used only in 
    connection with an enterprise zone homeownership opportunity program 
    of construction or rehabilitation of homes.

                           (2) Family need

        Each family purchasing a home under this section shall--
            (A) have a family income on the date of such purchase that 
        is not more than the median income for a family of 4 persons 
        (adjusted for family size) in the metropolitan statistical area 
        in which a federally approved or equivalent State-approved 
        enterprise zone is located; and
            (B) not have owned a home during the 3-year period preceding 
        such purchase.

                           (3) Downpayment

        Each family purchasing a home under this section shall make a 
    downpayment of not less than 5 percent of the sale price of such 
    home.

                       (4) Leasing prohibition

        No family purchasing a home under this section may lease such 
    home.

(f) Terms and conditions of assistance

                       (1) Local consultation

        No proposed enterprise zone homeownership opportunity program 
    may be approved by the Secretary under this section unless the 
    applicant involved demonstrates to the satisfaction of the Secretary 
    that--
            (A) it has consulted with and received the support of 
        residents of the neighborhood in which such program is to be 
        located; and
            (B) it has the approval of each unit of general local 
        government in which such program is to be located.

                        (2) Program schedule

        Each applicant for assistance under this section shall submit to 
    the Secretary an estimated schedule for completion of its proposed 
    enterprise zone homeownership opportunity program, which schedule 
    shall have been agreed to by each unit of general local government 
    in which such program is to be located.

                            (3) Location

        All homes constructed or rehabilitated under such program will 
    be located in federally approved or equivalent State-approved 
    enterprise zones.

                         (4) Sales contracts

        Sales contracts entered into under such program will contain 
    provisions requiring repayment of any loan made under this section 
    upon the sale or other transfer of the home involved, unless the 
    Secretary approves a transfer of such home without repayment (in 
    which case the second mortgage held by the Secretary on such home 
    shall remain in force until such loan is fully repaid).

(g) Program selection criteria

                           (1) In general

        In selecting enterprise zone homeownership opportunity programs 
    for assistance under this section from among eligible programs, the 
    Secretary shall make such selection on the basis of the extent to 
    which--
            (A) non-Federal public or private entities will contribute 
        land necessary to make each program feasible;
            (B) non-Federal public and private financial or other 
        contributions (including tax abatements, waivers of fees related 
        to development, waivers of construction, development, or zoning 
        requirements, and direct financial contributions) will reduce 
        the cost of home \1\ constructed or rehabilitated under each 
        program;
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    \1\ So in original. Probably should be ``homes''.
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            (C) each program will produce the greatest number of units 
        for the least amount of assistance provided under this section, 
        taking into consideration the cost differences among different 
        market areas; and
            (D) each program provides for the involvement of local 
        residents in the planning, and construction or rehabilitation, 
        of homes.

                            (2) Exception

        To the extent that non-Federal public entities are prohibited by 
    the law of any State from making any form of contribution described 
    in subparagraph (A) or (B) of paragraph (1), the Secretary shall not 
    consider such form of contribution in evaluating such program.

(h) Regulations

    Not later than 180 days after October 28, 1992, the Secretary shall 
issue final regulations to carry out the provisions of this title.\2\ 
Any such regulations shall be issued in accordance with section 553 of 
title 5, notwithstanding the provisions of subsection (a)(2) of such 
section.
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    \2\ So in original. Probably should be ``this section.''
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(i) Funding

    There are authorized to be appropriated to carry out this section 
$30,000,000 in each of fiscal years 1993 and 1994.

(Pub. L. 102-550, title I, Sec. 186, Oct. 28, 1992, 106 Stat. 3748.)

                          Codification

    Section was enacted as part of the Housing and Community Development 
Act of 1992, and not as part of subtitle C (Secs. 441-448) of title IV 
of Pub. L. 101-625 which comprises this part.

          Termination of Trust Territory of the Pacific Islands

    For termination of Trust Territory of the Pacific Islands, see note 
set out preceding section 1681 of Title 48, Territories and Insular 
Possessions.
