
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 106-377 Section 1(a)(1)[214(b)]]
[CITE: 42USC1437v]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                      CHAPTER 8--LOW-INCOME HOUSING
 
            SUBCHAPTER I--GENERAL PROGRAM OF ASSISTED HOUSING
 
Sec. 1437v. Demolition, site revitalization, replacement 
        housing, and tenant-based assistance grants for projects
        

(a) Purposes

    The purpose of this section is to provide assistance to public 
housing agencies for the purposes of--
        (1) improving the living environment for public housing 
    residents of severely distressed public housing projects through the 
    demolition, rehabilitation, reconfiguration, or replacement of 
    obsolete public housing projects (or portions thereof);
        (2) revitalizing sites (including remaining public housing 
    dwelling units) on which such public housing projects are located 
    and contributing to the improvement of the surrounding neighborhood;
        (3) providing housing that will avoid or decrease the 
    concentration of very low-income families; and
        (4) building sustainable communities.

(b) Grant authority

    The Secretary may make grants as provided in this section to 
applicants whose applications for such grants are approved by the 
Secretary under this section.

(c) Contribution requirement

                           (1) In general

        The Secretary may not make any grant under this section to any 
    applicant unless the applicant certifies to the Secretary that the 
    applicant will--
            (A) supplement the aggregate amount of assistance provided 
        under this section with an amount of funds from sources other 
        than this section equal to not less than 5 percent of the amount 
        provided under this section; and
            (B) in addition to supplemental amounts provided in 
        accordance with subparagraph (A), if the applicant uses more 
        than 5 percent of the amount of assistance provided under this 
        section for services under subsection (d)(1)(L) of this section, 
        provide supplemental funds from sources other than this section 
        in an amount equal to the amount so used in excess of 5 percent.

                       (2) Supplemental funds

        In calculating the amount of supplemental funds provided by a 
    grantee for purposes of paragraph (1), the grantee may include 
    amounts from other Federal sources, any State or local government 
    sources, any private contributions, the value of any donated 
    material or building, the value of any lease on a building, the 
    value of the time and services contributed by volunteers, and the 
    value of any other in-kind services or administrative costs 
    provided.

                            (3) Exemption

        If assistance provided under this subchapter will be used only 
    for providing tenant-based assistance under section 1437f of this 
    title or demolition of public housing (without replacement), the 
    Secretary may exempt the applicant from the requirements under 
    paragraph (1)(A).

(d) Eligible activities

                           (1) In general

        Grants under this section may be used for activities to carry 
    out revitalization programs for severely distressed public housing, 
    including--
            (A) architectural and engineering work;
            (B) redesign, rehabilitation, or reconfiguration of a 
        severely distressed public housing project, including the site 
        on which the project is located;
            (C) the demolition, sale, or lease of the site, in whole or 
        in part;
            (D) covering the administrative costs of the applicant, 
        which may not exceed such portion of the assistance provided 
        under this section as the Secretary may prescribe;
            (E) payment of reasonable legal fees;
            (F) providing reasonable moving expenses for residents 
        displaced as a result of the revitalization of the project;
            (G) economic development activities that promote the 
        economic self-sufficiency of residents under the revitalization 
        program;
            (H) necessary management improvements;
            (I) leveraging other resources, including additional housing 
        resources, retail supportive services, jobs, and other economic 
        development uses on or near the project that will benefit future 
        residents of the site;
            (J) replacement housing (including appropriate homeownership 
        downpayment assistance for displaced residents or other 
        appropriate replacement homeownership activities) and rental 
        assistance under section 1437f of this title;
            (K) transitional security activities; and
            (L) necessary supportive services, except that not more than 
        15 percent of the amount of any grant may be used for activities 
        under this paragraph.

             (2) Endowment trust for supportive services

        In using grant amounts under this section made available in 
    fiscal year 2000 or thereafter for supportive services under 
    paragraph (1)(L), a public housing agency may deposit such amounts 
    in an endowment trust to provide supportive services over such 
    period of time as the agency determines. Such amounts shall be 
    provided to the agency by the Secretary in a lump sum when requested 
    by the agency, shall be invested in a wise and prudent manner, and 
    shall be used (together with any interest thereon earned) only for 
    eligible uses pursuant to paragraph (1)(L). A public housing agency 
    may use amounts in an endowment trust under this paragraph in 
    conjunction with other amounts donated or otherwise made available 
    to the trust for similar purposes.

(e) Application and selection

                           (1) Application

        An application for a grant under this section shall demonstrate 
    the appropriateness of the proposal in the context of the local 
    housing market relative to other alternatives, and shall include 
    such other information and be submitted at such time and in 
    accordance with such procedures, as the Secretary shall prescribe.

                       (2) Selection criteria

        The Secretary shall establish selection criteria for the award 
    of grants under this section and shall include such factors as--
            (A) the relationship of the grant to the public housing 
        agency plan for the applicant and how the grant will result in a 
        revitalized site that will enhance the neighborhood in which the 
        project is located and enhance economic opportunities for 
        residents;
            (B) the capability and record of the applicant public 
        housing agency, or any alternative management entity for the 
        agency, for managing large-scale redevelopment or modernization 
        projects, meeting construction timetables, and obligating 
        amounts in a timely manner;
            (C) the extent to which the applicant could undertake such 
        activities without a grant under this section;
            (D) the extent of involvement of residents, State and local 
        governments, private service providers, financing entities, and 
        developers, in the development of a revitalization program for 
        the project;
            (E) the need for affordable housing in the community;
            (F) the supply of other housing available and affordable to 
        families receiving tenant-based assistance under section 1437f 
        of this title;
            (G) the amount of funds and other resources to be leveraged 
        by the grant;
            (H) the extent of the need for, and the potential impact of, 
        the revitalization program; and
            (I) such other factors as the Secretary considers 
        appropriate.

               (3) Applicability of selection criteria

        The Secretary may determine not to apply certain of the 
    selection criteria established pursuant to paragraph (2) when 
    awarding grants for demolition only, tenant-based assistance only, 
    or other specific categories of revitalization activities. This 
    section may not be construed to require any application for a grant 
    under this section to include demolition of public housing or to 
    preclude use of grant amounts for rehabilitation or rebuilding of 
    any housing on an existing site.

(f) Cost limits

    Subject to the provisions of this section, the Secretary--
        (1) shall establish cost limits on eligible activities under 
    this section sufficient to provide for effective revitalization 
    programs; and
        (2) may establish other cost limits on eligible activities under 
    this section.

(g) Disposition and replacement

    Any severely distressed public housing disposed of pursuant to a 
revitalization plan and any public housing developed in lieu of such 
severely distressed housing, shall be subject to the provisions of 
section 1437p of this title. Severely distressed public housing 
demolished pursuant to a revitalization plan shall not be subject to the 
provisions of section 1437p of this title.

(h) Administration by other entities

    The Secretary may require a grantee under this section to make 
arrangements satisfactory to the Secretary for use of an entity other 
than the public housing agency to carry out activities assisted under 
the revitalization plan, if the Secretary determines that such action 
will help to effectuate the purposes of this section.

(i) Withdrawal of funding

    If a grantee under this section does not proceed within a reasonable 
timeframe, in the determination of the Secretary, the Secretary shall 
withdraw any grant amounts under this section that have not been 
obligated by the public housing agency. The Secretary shall redistribute 
any withdrawn amounts to one or more other applicants eligible for 
assistance under this section or to one or more other entities capable 
of proceeding expeditiously in the same locality in carrying out the 
revitalization plan of the original grantee.

(j) Definitions

    For purposes of this section, the following definitions shall apply:

                            (1) Applicant

        The term ``applicant'' means--
            (A) any public housing agency that is not designated as 
        troubled pursuant to section 1437d(j)(2) of this title;
            (B) any public housing agency for which a private housing 
        management agent has been selected, or a receiver has been 
        appointed, pursuant to section 1437d(j)(3) of this title; and
            (C) any public housing agency that is designated as troubled 
        pursuant to section 1437d(j)(2) of this title and that--
                (i) is so designated principally for reasons that will 
            not affect the capacity of the agency to carry out a 
            revitalization program;
                (ii) is making substantial progress toward eliminating 
            the deficiencies of the agency; or
                (iii) is otherwise determined by the Secretary to be 
            capable of carrying out a revitalization program.

               (2) Severely distressed public housing

        The term ``severely distressed public housing'' means a public 
    housing project (or building in a project)--
            (A) that--
                (i) requires major redesign, reconstruction or 
            redevelopment, or partial or total demolition, to correct 
            serious deficiencies in the original design (including 
            inappropriately high population density), deferred 
            maintenance, physical deterioration or obsolescence of major 
            systems and other deficiencies in the physical plant of the 
            project;
                (ii) is a significant contributing factor to the 
            physical decline of and disinvestment by public and private 
            entities in the surrounding neighborhood;
                (iii)(I) is occupied predominantly by families who are 
            very low-income families with children, are unemployed, and 
            dependent on various forms of public assistance; or
                (II) has high rates of vandalism and criminal activity 
            (including drug-related criminal activity) in comparison to 
            other housing in the area;
                (iv) cannot be revitalized through assistance under 
            other programs, such as the program for capital and 
            operating assistance for public housing under this chapter, 
            or the programs under sections 1437g and 1437l of this title 
            (as in effect before the effective date under under \1\ 
            section 503(a) \1\ the Quality Housing and Work 
            Responsibility Act of 1998), because of cost constraints and 
            inadequacy of available amounts; and
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    \1\ So in original.
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                (v) in the case of individual buildings, is, in the 
            Secretary's determination, sufficiently separable from the 
            remainder of the project of which the building is part to 
            make use of the building feasible for purposes of this 
            section; or

            (B) that was a project described in subparagraph (A) that 
        has been legally vacated or demolished, but for which the 
        Secretary has not yet provided replacement housing assistance 
        (other than tenant-based assistance).

                       (3) Supportive services

        The term ``supportive services'' includes all activities that 
    will promote upward mobility, self-sufficiency, and improved quality 
    of life for the residents of the public housing project involved, 
    including literacy training, job training, day care, transportation, 
    and economic development activities.

(k) Grantee reporting

    The Secretary shall require grantees of assistance under this 
section to report the sources and uses of all amounts expended for 
revitalization plans.

(l) Annual report

    The Secretary shall submit to the Congress an annual report setting 
forth--
        (1) the number, type, and cost of public housing units 
    revitalized pursuant to this section;
        (2) the status of projects identified as severely distressed 
    public housing;
        (3) the amount and type of financial assistance provided under 
    and in conjunction with this section; and
        (4) the recommendations of the Secretary for statutory and 
    regulatory improvements to the program established by this section.

(m) Funding

                 (1) Authorization of appropriations

        There are authorized to be appropriated for grants under this 
    section $600,000,000 for fiscal year 1999 and such sums as may be 
    necessary for each of fiscal years 2000, 2001, and 2002.

           (2) Technical assistance and program oversight

        Of the amount appropriated pursuant to paragraph (1) for any 
    fiscal year, the Secretary may use up to 2 percent for technical 
    assistance or contract expertise. Such assistance or contract 
    expertise may be provided directly or indirectly by grants, 
    contracts, or cooperative agreements, and shall include training, 
    and the cost of necessary travel for participants in such training, 
    by or to officials of the Department of Housing and Urban 
    Development, of public housing agencies, and of residents.

(n) Sunset

    No assistance may be provided under this section after September 30, 
2002.

(Sept. 1, 1937, ch. 896, title I, Sec. 24, as added Pub. L. 102-550, 
title I, Sec. 120, Oct. 28, 1992, 106 Stat. 3695; amended Pub. L. 104-
99, title IV, Sec. 402(d)(6)(A)(vi), Jan. 26, 1996, 110 Stat. 43; Pub. 
L. 104-330, title V, Sec. 501(b)(9), Oct. 26, 1996, 110 Stat. 4042; Pub. 
L. 105-276, title V, Sec. 535(a), Oct. 21, 1998, 112 Stat. 2581.)

                       References in Text

    Section 1437l of this title, referred to in subsec. (j)(2)(A)(iv), 
was repealed by Pub. L. 105-276, title V, Sec. 522(a), Oct. 21, 1998, 
112 Stat. 2564.
    Section 503(a) of the Quality Housing and Work Responsibility Act of 
1998, referred to in subsec. (j)(2)(A)(iv), is section 503(a) of Pub. L. 
105-276, which is set out as an Effective Date of 1998 Amendment note 
under section 1437 of this title.


                               Amendments

    1998--Pub. L. 105-276 amended section generally. Prior to amendment, 
section authorized planning grants for development of revitalization 
programs for severely distressed public housing and implementation 
grants to carry out revitalization programs for such housing, authorized 
exceptions to general program rules, established Office of Severely 
Distressed Public Housing Revitalization, and required annual report to 
Congress.
    1996--Subsec. (e). Pub. L. 104-99 temporarily substituted 
``Exception'' for ``Exceptions'' in subsec. heading and struck out ``(1) 
Long-term viability.--'' before ``The Secretary may waive'' and par. (2) 
which read as follows:
    ``(2) Selection of tenants.--For projects revitalized under this 
section, a public housing agency may select tenants pursuant to a local 
system of preferences, in lieu of selecting tenants pursuant to the 
preferences specified under section 1437d(c)(4)(A)(i) of this title. 
Such local system shall be established in writing and shall respond to 
local housing needs and priorities as determined by the public housing 
agency. The public housing agency shall hold 1 or more public hearings 
to obtain the views of low-income tenants and other interested parties 
on the housing needs and priorities of the agency's jurisdiction.'' See 
Effective and Termination Dates of 1996 Amendments note below.
    Subsec. (h)(3). Pub. L. 104-330 struck out ``, except that it does 
not include any Indian housing authority'' after ``section 1437a(b) of 
this title''.


                    Effective Date of 1998 Amendment

    Pub. L. 105-276, title V, Sec. 535(b), Oct. 21, 1998, 112 Stat. 
2586, provided that: ``The amendment made by this section [amending this 
section] is made on, and shall apply beginning upon, the date of the 
enactment of this Act [Oct. 21, 1998].''


           Effective and Termination Dates of 1996 Amendments

    Amendment by Pub. L. 104-330 effective Oct. 1, 1997, except as 
otherwise expressly provided, see section 107 of Pub. L. 104-330, set 
out as an Effective Date note under section 4101 of Title 25, Indians.
    Amendment by Pub. L. 104-99 effective Jan. 26, 1996, only for fiscal 
years 1996, 1997, and 1998, and to cease to be effective Oct. 21, 1998, 
see section 402(f) of Pub. L. 104-99, as amended, and section 514(f) of 
Pub. L. 105-276, set out as notes under section 1437a of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 1437c, 1437d of this title.
