
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: 42USC1437aaa-2]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                      CHAPTER 8--LOW-INCOME HOUSING
 
         SUBCHAPTER II-A--HOPE FOR PUBLIC HOUSING HOMEOWNERSHIP
 
Sec. 1437aaa-2. 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 subchapter.

(b) Eligible activities

    Implementation grants may be used for activities to carry out 
homeownership programs (including programs for cooperative ownership) 
that meet the requirements under this subchapter, including the 
following activities:
        (1) Architectural and engineering work.
        (2) Implementation of the homeownership program, including 
    acquisition of the public housing project from a public housing 
    agency for the purpose of transferring ownership to eligible 
    families in accordance with a homeownership program that meets the 
    requirements under this subchapter.
        (3) Rehabilitation of any public housing project 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 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 1437aaa-1 of this title for such 
    activities.
        (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) Funding of operating expenses and replacement reserves of 
    the project covered by the homeownership program, except that the 
    amount of assistance for operating expenses shall not exceed the 
    amount the project would have received if it had continued to 
    receive such assistance from the Operating Fund, with adjustments 
    comparable to those that would have been made under section 1437g of 
    this title, and except that implementation grants may not be used 
    under this paragraph to fund operating expenses for scattered site 
    public housing acquired under a homeownership program.
        (11) Implementation of a replacement housing plan.
        (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 25 percent of the grant amount made available under this 
    section, excluding any amounts provided for post-sale operating 
    expenses and replacement housing, 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 Federal tax expenditures or funds from a grant made 
        under section 5306(b) of this title 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) of this title 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 subchapter;
            (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 subchapter; 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.

                    (3) Reduction of requirement

        The Secretary shall reduce the matching requirement for 
    homeownership programs carried out under this section in accordance 
    with the formula established under section 220(d) of the Cranston-
    Gonzalez National Affordable Housing Act [42 U.S.C. 12750(d)].

(d) Application

                       (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, which shall specify 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 housing for low-income families;
            (D) a description of the proposed homeownership program, 
        consistent with section 1437aaa-3 of this title and the other 
        requirements of this subchapter, which shall specify the 
        activities proposed to be carried out and their estimated costs, 
        identifying reasonable schedules for carrying it out, and 
        demonstrating that the program will comply with the 
        affordability requirements under section 1437aaa-3(b) of this 
        title;
            (E) identification and description of the public housing 
        project or projects 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, where applicable, by a resident council or other 
        entity for transfer to eligible families, and (II) by eligible 
        families of ownership interests in, or shares representing, 
        units in the project;
            (H) if the applicant is not a public housing agency, the 
        proposed sales price, if any, the basis for such price 
        determination, and terms to the applicant;
            (I) the estimated 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 105 of the Cranston-Gonzalez National Affordable 
        Housing Act [42 U.S.C. 12705] 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 794 of title 29, and the Age Discrimination Act 
        of 1975 [42 U.S.C. 6101 et seq.], and will affirmatively further 
        fair housing.

(e) Selection criteria

    The Secretary shall establish selection criteria for a national 
competition for assistance under this section, which shall include--
        (1) the ability of the applicant to develop and carry out the 
    proposed homeownership program, taking into account the quality of 
    any related ongoing program of the applicant, and the extent of 
    tenant interest in the development of a homeownership program and 
    community support;
        (2) the feasibility of the homeownership program;
        (3) the extent to which current tenants and other eligible 
    families will be able to afford the purchase;
        (4) the quality and viability of the proposed homeownership 
    program, including the viability of the economic self-sufficiency 
    plan;
        (5) the extent to which funds for activities that do not qualify 
    as eligible activities will be provided in support of the 
    homeownership program;
        (6) whether the approved comprehensive housing affordability 
    strategy for the jurisdiction within which the public housing 
    project is located includes the proposed homeownership program as 
    one of the general priorities identified pursuant to section 
    105(b)(7) of the Cranston-Gonzalez National Affordable Housing Act 
    [42 U.S.C. 12705(b)(7)];
        (7) national geographic diversity among housing for which 
    applicants are selected to receive assistance; and
        (8) the extent to which a sufficient supply of affordable rental 
    housing exists in the locality, so that the implementation of the 
    homeownership program will not reduce the number of such rental 
    units available to residents currently residing in such units or 
    eligible for residency in such units.

(f) Location within participating jurisdictions

    The Secretary may approve applications for grants under this 
subchapter only for public housing projects located within the 
boundaries of jurisdictions--
        (1) which are participating jurisdictions under title III of the 
    Cranston-Gonzalez National Affordable Housing Act; or
        (2) on behalf of which the agency responsible for affordable 
    housing has submitted a housing strategy or plan.

(g) 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 
replacement housing and for residents of the project not purchasing 
units is conditionally approved, subject to the availability of 
appropriations in subsequent fiscal years.

(Sept. 1, 1937, ch. 896, title III, Sec. 303, as added Pub. L. 101-625, 
title IV, Sec. 411, Nov. 28, 1990, 104 Stat. 4150; amended Pub. L. 102-
550, title I, Sec. 181(b), (c), (g)(1), title X, Sec. 1012(h)(2), Oct. 
28, 1992, 106 Stat. 3735, 3736, 3906; Pub. L. 105-276, title V, 
Sec. 519(c)(1), Oct. 21, 1998, 112 Stat. 2561.)

                       References in Text

    This subchapter, referred to in subsecs. (b) (introductory 
provisions) and (c)(2)(C), (E), was in the original ``this subtitle'', 
and was translated as reading ``this title'', meaning title III of act 
Sept. 1, 1937, ch. 896, as added by Pub. L. 101-625, to reflect the 
probable intent of Congress, because title III of act Sept. 1, 1937, 
does not contain subtitles.
    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 of chapter 45 (Sec. 3601 et seq.) 
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.
    The Cranston-Gonzalez National Affordable Housing Act, referred to 
in subsec. (f)(1), is Pub. L. 101-625, Nov. 28, 1990, 104 Stat. 4079. 
Title III of the Act enacted subchapter III (Sec. 12851 et seq.) of 
chapter 130 of this title and sections 1735f-17 and 1735f-18 of Title 
12, Banks and Banking, amended sections 1703, 1708, 1709, 1715d, 1715z-
20, 1721, and 1735f-9 of Title 12, and enacted provisions set out as 
notes under sections 1703, 1709, 1713, and 1735f-18 of Title 12. For 
complete classification of this Act to the Code, see Short Title note 
set out under section 12701 of this title and Tables.


                               Amendments

    1998--Subsec. (b)(10). Pub. L. 105-276 substituted ``such assistance 
from the Operating Fund'' for ``such assistance under section 1437g of 
this title''.
    1992--Subsec. (b)(2). Pub. L. 102-550, Sec. 181(g)(1)(A), struck out 
``(not including scattered site single family housing of a public 
housing agency)'' after ``public housing project''.
    Subsec. (b)(4) to (8). Pub. L. 102-550, Sec. 1012(h)(2), added par. 
(4) and redesignated former pars. (4) to (7) as (5) to (8), 
respectively. Former par. (8) redesignated (9).
    Subsec. (b)(9). Pub. L. 102-550, Sec. 1012(h)(2)(A), redesignated 
par. (8) as (9). Former par. (9) redesignated (10).
    Pub. L. 102-550, Sec. 181(g)(1)(B), which directed insertion of ``, 
and except that implementation grants may not be used under this 
paragraph to fund operating expenses for scattered site public housing 
acquired under a homeownership program'' before period at end of section 
``303(b)(9) of the Cranston-Gonzalez National Affordable Housing Act (42 
U.S.C. 1437aaa-2(b)(9))'', was executed by making the insertion before 
period at end of subsec. (b)(9) of this section, which is section 303 of 
the United States Housing Act of 1937, to reflect the probable intent of 
Congress.
    Subsec. (b)(10) to (14). Pub. L. 102-550, Sec. 1012(h)(2)(A), 
redesignated pars. (9) to (13) as (10) to (14), respectively.
    Subsec. (c)(1). Pub. L. 102-550, Sec. 181(b)(1), inserted ``and 
replacement housing'' after ``expenses''.
    Subsec. (c)(3). Pub. L. 102-550, Sec. 181(b)(2), added par. (3).
    Subsec. (e)(8). Pub. L. 102-550, Sec. 181(c), struck out ``of the 
type assisted under this subchapter'' after ``rental housing'' and 
``appreciably'' before ``reduce''.


                    Effective Date of 1998 Amendment

    Amendment by title V of Pub. L. 105-276 effective and applicable 
beginning upon Oct. 1, 1999, except as otherwise provided, with 
provision that Secretary may implement amendment before such date, 
except to extent that such amendment provides otherwise, and with 
savings provision, see section 503 of Pub. L. 105-276, set out as a note 
under section 1437 of this title.

                  Section Referred to in Other Sections

    This section is referred to in section 1437aaa-4 of this title.
