
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 106-400 Section 2]
[CITE: 42USC12899d]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                CHAPTER 130--NATIONAL AFFORDABLE HOUSING
 
 SUBCHAPTER IV--HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE FAMILY 
                                  HOMES
 
                   Part C--HOPE for Youth: Youthbuild
 
Sec. 12899d. Youthbuild program requirements


(a) Residential rental housing

    Each residential rental housing project receiving assistance under 
this part shall meet the following requirements:

         (1) Occupancy by low- and very low-income families

        In the project--
            (A) at least 90 percent of the units shall be occupied, or 
        available for occupancy, by individuals and families with 
        incomes less than 60 percent of the area median income, adjusted 
        for family size; and
            (B) the remaining units shall be occupied, or available for 
        occupancy, by low-income families.

                       (2) Tenant protections

        (A) Lease

            The lease between a tenant and an owner of residential 
        rental housing assisted under this part shall be for not less 
        than 1 year, unless otherwise mutually agreed to by the tenant 
        and the owner, and shall contain such terms and conditions as 
        the Secretary shall determine to be appropriate.

        (B) Termination of tenancy

            An owner shall not terminate the tenancy or refuse to renew 
        the lease of a tenant of residential rental housing assisted 
        under this title \1\ except for serious or repeated violation of 
        the terms and conditions of the lease, for violation of 
        applicable Federal, State, or local law, or for other good 
        cause. Any termination or refusal to renew must be preceded by 
        not less than 30 days by the owner's service upon the tenant of 
        a written notice specifying the grounds for the action.
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    \1\ See References in Text note below.
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        (C) Maintenance and replacement

            The owner of residential rental housing assisted under this 
        part shall maintain the premises in compliance with all 
        applicable housing quality standards and local code 
        requirements.

        (D) Tenant selection

            The owner of residential rental housing assisted under this 
        part shall adopt written tenant selection policies and criteria 
        that--
                (i) are consistent with the purpose of providing housing 
            for very low-income and low-income families and individuals;
                (ii) are reasonably related to program eligibility and 
            the applicant's ability to perform the obligations of the 
            lease;
                (iii) give reasonable consideration to the housing needs 
            of families that would qualify for a preference under any 
            system of preferences established under section 1437d(c)(1) 
            of this title; and
                (iv) provide for (I) the selection of tenants from a 
            written waiting list in the chronological order of their 
            application, to the extent practicable, and (II) for the 
            prompt notification in writing of any rejected applicant of 
            the grounds for any rejection.

                  (3) Limitation on rental payments

        Tenants in each project shall not be required to pay rent in 
    excess of the amount provided under section 1437a(a) of this title.

                    (4) Tenant participation plan

        For each project owned by a nonprofit organization, the 
    organization shall provide a plan for and follow a program of tenant 
    participation in management decisions.

               (5) Prohibition against discrimination

        A unit in a project assisted under this part may not be refused 
    for leasing to a family holding tenant-based assistance under 
    section 1437f of this title because of the status of the prospective 
    tenant as a holder of such assistance.

(b) Transitional housing

    Each transitional housing project receiving assistance under this 
part shall adhere to the requirements regarding service delivery, 
housing standards, and rent limitations applicable to comparable housing 
receiving assistance under title IV of the Stewart B. McKinney Homeless 
Assistance Act [42 U.S.C. 11361 et seq.].

(c) Limitations on profits for rental and transitional housing

                    (1) Monthly rental limitation

        The aggregate monthly rental for each eligible project may not 
    exceed the operating costs of the project (including debt service, 
    management, adequate reserves, and other operating costs) plus a 6 
    percent return on any equity investment of the project owner.

                 (2) Profit limitations on partners

        A nonprofit organization that receives assistance under this 
    part for a project shall agree to use any profit received from the 
    operation, sale, or other disposition of the project for the purpose 
    of providing housing for low- and moderate-income families. Profit-
    motivated partners in a nonprofit partnership may receive--
            (A) not more than a 6 percent return on their equity 
        investment from project operations; and
            (B) upon disposition of the project, not more than an amount 
        equal to their initial equity investment plus a return on that 
        investment equal to the increase in the Consumer Price Index for 
        the geographic location of the project since the time of the 
        initial investment of such partner in the project.

(d) Homeownership

    Each homeownership project that receives assistance under this part 
shall comply with the requirements of part A or part B of this 
subchapter.

(e) Restrictions on conveyance

    The ownership interest in a project that receives assistance under 
this part may not be conveyed unless the instrument of conveyance 
requires a subsequent owner to comply with the same restrictions imposed 
upon the original owner.

(f) Conversion of transitional housing

    The Secretary may waive the requirements of subsection (b) of this 
section to permit the conversion of a transitional housing project to a 
permanent housing project only if such housing would meet the 
requirements for residential rental housing specified in this section.

(g) Period of restrictions

    A project that receives assistance under this part shall comply with 
the requirements of this section for the remaining useful life of the 
property.

(Pub. L. 101-625, title IV, Sec. 455, as added Pub. L. 102-550, title I, 
Sec. 164, Oct. 28, 1992, 106 Stat. 3728; amended Pub. L. 105-276, title 
V, Sec. 514(a)(2)(B), Oct. 21, 1998, 112 Stat. 2547.)

                       References in Text

    This title, referred to in subsec. (a)(2)(B), 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 D of 
title IV of Pub. L. 101-625, as added by Pub. L. 102-550, which is 
classified generally 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.
    The Stewart B. McKinney Homeless Assistance Act, referred to in 
subsec. (b), is Pub. L. 100-77, July 22, 1987, 101 Stat. 482, as 
amended. Title IV of the Act is classified principally to subchapter IV 
(Sec. 11361 et seq.) of chapter 119 of this title. For complete 
classification of this Act to the Code, see Short Title note set out 
under section 11301 of this title and Tables.


                               Amendments

    1998--Subsec. (a)(2)(D)(iii). Pub. L. 105-276 substituted ``any 
system of preferences established under section 1437d(c)(1) of this 
title'' for ``section 1437d(c)(4)(A) of this title''.
