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42 U.S.C. § 12752 — Allocation of resources

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42 U.S.C. § 12752 — Allocation of resources

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Source location: Title 42, Chapter 130, § 12752; chapter-130-national-affordable-housing.md

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**(a) In general** (1) **States and units of general local government** — After reserving amounts under paragraph (3) for the insular areas, the Secretary shall allocate funds approved in an appropriation Act to carry out this subchapter by formula as provided in subsection (b). Of the funds made available under the preceding sentence, the Secretary shall initially allocate 60 percent among units of general local government and 40 percent among States. (2) **Repealed. Pub. L. 104–330, title V, § 505(a)(1)(B), Oct. 26, 1996, 110 Stat. 4044** (3) **11 See 1992 Amendment note below. Insular areas** — For each fiscal year, of any amounts approved in appropriation Acts to carry out this subchapter, the Secretary shall reserve for grants to the insular areas the greater of (A) $750,000, or (B) 0.2 percent of the amounts appropriated under such Acts. The Secretary shall provide for the distribution of amounts reserved under this paragraph among the insular areas pursuant to specific criteria for such distribution, which shall be contained in a regulation issued by the Secretary. **(b) Formula allocation** (1) **In general** (A) *Basic formula* — The Secretary shall establish in 22 So in original. Probably should be “by”. regulation an allocation formula that reflects each jurisdiction’s share of total need among eligible jurisdiction 33 So in original. Probably should be “jurisdictions”. for an increased supply of affordable housing for very low-income and low-income families of different size, as identified by objective measures of inadequate housing supply, substandard housing, the number of low-income families in housing likely to be in need of rehabilitation, the costs of producing housing, poverty, and the relative fiscal incapacity of the jurisdiction to carry out housing activities eligible under [section 12742 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section12742&num=0&edition=prelim) without Federal assistance. Allocation among units of general local government shall take into account the housing needs of metropolitan cities, urban counties, and approved consortia of units of general local government. (B) *Source of data* — The data to be used for formula allocation of funds within a fiscal year shall be data obtained from a standard source that are available to the Secretary 90 days prior to the beginning of that fiscal year. (C) *Use of basic formula* — The basic formula established under subparagraph (A) shall be used for all formula allocations and reallocations provided for in this part. (D) *Weights* — When allocation is made among States, the Secretary shall apply the formula in subparagraph (A) giving 20 percent weight to measures of need for the whole State and 80 percent weight to measures of need among units of general local government that are not receiving an allocation under [section 12746(1) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section12746/1&num=0&edition=prelim). (E) *Adjustments* — In developing the basic formula in subparagraph (A), the Secretary shall (i) avoid the allocation of an excessively large share of amounts made available under this part to any one State or unit of general local government, and (ii) take into account the need for a geographic distribution of amounts made available under this part that appropriately reflects the housing need in each region of the Nation. (F) *Consultation* — The Secretary shall develop the formula in subparagraph (A) in ongoing consultation with (i) the Subcommittee on Housing and Urban Affairs of the Committee on Banking, Housing, and Urban Affairs of the Senate, (ii) the Subcommittee on Housing and Community Development of the Committee on Banking, Finance and Urban Affairs of the House of Representatives, and (iii) organizations representing States and units of general local government. Not less than 60 days prior to publishing a formula for comment, the Secretary shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Banking, Finance and Urban Affairs of the House of Representatives a copy of the formula the Secretary intends to propose. (2) **Minimum State allocation** (A) *In general* — If the formula, when applied to funds approved under this section in appropriations Acts for a fiscal year, would allocate less than $3,000,000 to any State, the allocation for such State shall be $3,000,000, and the increase shall be deducted pro rata from the allocations of other States. (B) *Increased minimum allocation* — If no unit of general local government within a State receives an allocation under paragraph (3), the State’s allocation shall be increased by $500,000. Priority for use of such increased allocation shall go to the provision of affordable housing within the boundaries of metropolitan cities, urban counties, and approved consortia within the State, based on the need for such funds. The increased allocation to a State under the preceding sentence shall be derived by a pro rata deduction from the allocations to units of general local government in all States, except that such pro rata deduction shall not reduce the allocation of any unit of general local government below $500,000. (3) **Minimum local allocation** — The Secretary shall allocate funds available for formula allocation to units of general local government that, as of the end of the previous fiscal year, qualified as metropolitan cities, urban counties, and consortia approved by the Secretary in accordance with [section 12746(2) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section12746/2&num=0&edition=prelim) so that, when all such funds are initially allocated by formula, jurisdictions that are allocated an amount of $500,000 or more, and participating jurisdictions (other than consortia that fail to renew the membership of all of their member jurisdictions) that are allocated an amount less than $500,000, shall receive an allocation. Prior to announcing initial allocations, the Secretary shall successively recalculate the allocations to jurisdictions under this subsection so that the maximum number of such jurisdictions can receive initial allocations, except as provided in paragraph (4). (4) **Threshold reduction** — If the amount appropriated pursuant to [section 12724 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section12724&num=0&edition=prelim) for any fiscal year is less than $1,500,000,000, then this section shall be applied during that year by substituting “$335,000” for “$500,000” where it appears in paragraph (3). **(c) Criteria for direct reallocation** The Secretary shall establish objective criteria for making direct reallocations to any participating jurisdiction and other eligible entities. A jurisdiction shall be eligible for a direct reallocation under this subsection only if the jurisdiction, in a form acceptable to the Secretary, submits an application that demonstrates to the satisfaction of the Secretary that the jurisdiction is engaged, or has made good faith efforts to engage, in cooperative efforts between the State and appropriate participating jurisdictions within the State to develop, coordinate, and implement housing strategies under this subchapter. The Secretary shall by regulation establish objective selection criteria for such direct reallocations, which criteria shall take into account— (1) the applicant’s demonstrated commitment to expand the supply of affordable rental housing, including units developed by public housing agencies, as indicated by the additional number of units of affordable housing made available through production or rehabilitation within the previous 2 years, making adjustment for regional variations in construction and rehabilitation costs and giving special consideration to the number of additional units made available under this subchapter through production or rehabilitation, including units developed by public housing agencies, in relation to the amounts made available under this program; (2) the applicant’s actions that— (A) direct funds made available under this part to benefit very low-income families, with a range of incomes, in amounts that exceed the income targeting requirements of [section 12744 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section12744&num=0&edition=prelim), with extra consideration given for activities that expand the supply of affordable housing for very low-income families whose incomes do not exceed 30 percent of the median family income for the area, as determined by the Secretary; (B) apply the tenant selection preference categories applicable under [section 1437f of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section1437f&num=0&edition=prelim) to the selection of tenants for housing assisted under this part; (C) provide matching resources in excess of funds required under [section 12750 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section12750&num=0&edition=prelim); and (D) stimulate a high degree of investment and participation in development by the private sector, including nonprofit organizations; and (3) the degree to which the applicant is pursuing policies that— (A) make existing housing more affordable; (B) remove or ameliorate any negative effects that public policies identified by the applicant pursuant to [section 12705(b)(4) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section12705/b/4&num=0&edition=prelim) may have on the cost of housing or the incentives to develop, maintain, or improve affordable housing in the jurisdiction; (C) preserve the affordability of privately-owned housing that is vulnerable to conversion, demolition, disinvestment, or abandonment; (D) increase the supply of housing that is affordable to very low-income and low-income persons, particularly in areas that are accessible to expanding job opportunities; and (E) remedy the effects of discrimination and improve housing opportunities for disadvantaged minorities. **(d) Reallocations** (1) **In general** — The Secretary shall make any reallocations periodically throughout each fiscal year so as to ensure that all funds to be reallocated are made available to eligible jurisdictions as soon as possible, consistent with orderly program administration. Jurisdictions eligible for such reallocations shall include participating jurisdictions and jurisdictions meeting the requirements of paragraphs (3), (4), and (5) of [section 12746 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section12746&num=0&edition=prelim). (2) **Commitments** — The Secretary shall establish procedures according to which participating jurisdictions may make commitments to invest funds made available under this section. Such procedures shall provide for appropriate stages of commitment of funds to a project from initial reservation through binding commitment. Notwithstanding any other provision of this subchapter, funds that the Secretary determines are needed to fulfill binding commitments shall not be available for reallocation. (3) **Limitation** — Unless otherwise specified in this part, any reallocation of funds from a State shall be made only among all participating States, and any reallocation of funds from units of general local government shall be made only among all participating units of general local government.

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42 U.S.C. § 1437f — Repealed. Pub. L. 93–383, title II, § 204, Aug. 22, 1974, 88 Stat. 668

### Statutory Notes Section, act Aug. 2, 1954, ch. 649, title VIII, § 815, 68 Stat. 647, required submission of specifications by applicants prior to award of any contract for construction of a project and submission of data with respect to acquisition of land prior to authorization to purchase such land.

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42 U.S.C. § 12724 — Termination of existing housing programs

**(a) In general** Except with respect to projects and programs for which binding commitments have been entered into prior to October 1, 1991, no new grants or loans shall be made after October 1, 1991, under— (1) section 17 of the United States Housing Act of 1937 [[42 U.S.C. 1437](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section1437&num=0&edition=prelim)o]; (2) section 312 of the Housing Act of 1964 [[42 U.S.C. 1452b](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section1452b&num=0&edition=prelim)]; (3) title VI of the Housing and Community Development Act of 1987; (4) section 8(e)(2) of the United States Housing Act of 1937 [[42 U.S.C. 1437f(e)(2)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section1437f/e/2&num=0&edition=prelim)], except for funds allocated under such section for single room occupancy dwellings as authorized by title IV of the McKinney-Vento Homeless Assistance Act [[42 U.S.C. 11360](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section11360&num=0&edition=prelim) et seq.]; and (5) section 810 of the Housing and Community Development Act of 1974 [[12 U.S.C. 1706e](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1706e&num=0&edition=prelim)]. **(b) Repeals** (1) **In general** — Except as provided in paragraph (2), effective on October 1, 1991, the provisions of law referred to in subsection (a) are repealed. (2) **No effect on SRO program** — The provision of law referred to in subsection (a)(4) shall remain in effect with respect to single room occupancy dwellings as authorized by title IV of the McKinney-Vento Homeless Assistance Act [[42 U.S.C. 11360](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-titl

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42 U.S.C. § 12750 — Qualification as affordable housing

**(a) Rental housing** (1) **Qualification** — Housing that is for rental shall qualify as affordable housing under this subchapter only if the housing— (A) bears rents not greater than the lesser of (i) the existing fair market rent for comparable units in the area as established by the Secretary under [section 1437f of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section1437f&num=0&edition=prelim), or (ii) a rent that does not exceed 30 percent of the adjusted income of a family whose income equals 65 percent of the median income for the area, as determined by the Secretary, with adjustment for number of bedrooms in the unit, except that the Secretary may establish income ceilings higher or lower than 65 percent of the median for the area on the basis of the Secretary’s findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes; (B) has not less than 20 percent of the units (i) occupied by very low-income families who pay as a contribution toward rent (excluding any Federal or State rental subsidy provided on behalf of the family) not more than 30 percent of the family’s monthly adjusted income as determined by the Secretary, or (ii) occupied by very low-income families and bearing rents not greater than the gross rent for rent-restricted residential units as determined under [section 42(g)(2) of title 26](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section42/g/2&num=0&edition=prelim); (C) is occupied only by households that qualify as low-income families; (D) is not refused for leasing to a holder of a voucher or certificate of eligibility under [section 1437f of this title](https://uscode.house.go

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42 U.S.C. § 12742 — Purposes

The purposes of this subchapter are— (1) to expand the supply of decent, safe, sanitary, and affordable housing, with primary attention to rental housing, for very low-income and low-income Americans; (2) to mobilize and strengthen the abilities of States and units of general local government throughout the United States to design and implement strategies for achieving an adequate supply of decent, safe, sanitary, and affordable housing; (3) to provide participating jurisdictions, on a coordinated basis, with the various forms of Federal housing assistance, including capital investment, mortgage insurance, rental assistance, and other Federal assistance, needed— (A) to expand the supply of decent, safe, sanitary, and affordable housing; (B) to make new construction, rehabilitation, substantial rehabilitation, and acquisition of such housing feasible; and (C) to promote the development of partnerships among the Federal Government, States and units of general local government, private industry, and nonprofit organizations able to utilize effectively all available resources to provide more of such housing; (4) to make housing more affordable for very low-income and low-income families through the use of tenant-based rental assistance; (5) to develop and refine, on an ongoing basis, a selection of model programs incorporating the most effective methods for providing decent, safe, sanitary, and affordable housing, and accelerate the application of such methods where appropriate throughout the United States to achieve the prudent and efficient use of funds made available under this subchapter; (6) to expand the capacity of nonprofit community housing development organizations to develop and manage decent, safe, sanitary, and affordable housing; (7) to ensure t

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42 U.S.C. § 3535 — Administrative provisions

**(a) Transfer of personnel, assets, etc.** The personnel employed in connection with, and the assets, liabilities, contracts, property, records, and unexpended balances of appropriations, authorizations, allocations, or other funds held, used, arising from, or available or to be made available in connection with, the functions, powers, and duties transferred by [section 3534 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section3534&num=0&edition=prelim) are hereby transferred with such functions, powers, and duties, respectively. **(b) Repealed. Pub. L. 90–448, title VIII, § 807(d), Aug. 1, 1968, 82 Stat. 544** **(c) Employment, compensation, authority, and duties of personnel** The Secretary is authorized, subject to the civil service and classification laws, to select, appoint, employ, and fix the compensation of such officers and employees, including attorneys, as shall be necessary to carry out the provisions of this chapter and to prescribe their authority and duties: Provided, That any other provision of law to the contrary notwithstanding, the Secretary may fix the compensation for not more than six positions in the Department at the annual rate applicable to positions in level V of the Executive Schedule provided by subchapter II of chapter 53 of title 5. **(d) Delegation of authority; rules and regulations** The Secretary may delegate any of his functions, powers, and duties to such officers and employees of the Department as he may designate, may authorize such successive redelegations of such functions, powers, and duties as he may deem desirable, and may make such rules and regulations as may be necessary to carry out his functions, powers, and duties. **(e) Temporary employment of experts or consultants; compensati

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2 U.S.C. § 21 — Oath of Senators

The oath of office shall be administered by the President of the Senate to each Senator who shall be elected, previous to his taking his seat.

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42 U.S.C. § 12838 — Audits by Comptroller General

**(a) Audits of HOME Investment Partnerships program** The Comptroller General, when the Comptroller General deems it to be appropriate or when requested by the Committee on Banking, Housing, and Urban Affairs of the Senate or the Committee on Banking, Finance and Urban Affairs of the House of Representatives, shall conduct a full financial audit of the records of the HOME Investment Partnerships program for any fiscal year. The report of the Comptroller General shall be submitted promptly to the Secretary and the Congress and shall be published. **(b) Audits of recipients** The financial transactions of participating jurisdictions and of other recipients of funds provided under this subchapter may, insofar as they relate to funds provided under this subchapter, be audited by the Government Accountability Office under such rules and regulations as may be prescribed by the Comptroller General of the United States. The representatives of the Government Accountability Office shall have access to all books, accounts, records, reports, files, and other papers, things, or property belonging to or in use by such recipients pertaining to such financial transactions and necessary to facilitate the audit.

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5 U.S.C. § 553 — Rule making

**(a)** This section applies, according to the provisions thereof, except to the extent that there is involved— (1) a military or foreign affairs function of the United States; or (2) a matter relating to agency management or personnel or to public property, loans, grants, benefits, or contracts. **(b)** General notice of proposed rule making shall be published in the Federal Register, unless persons subject thereto are named and either personally served or otherwise have actual notice thereof in accordance with law. The notice shall include— (1) a statement of the time, place, and nature of public rule making proceedings; (2) reference to the legal authority under which the rule is proposed; (3) either the terms or substance of the proposed rule or a description of the subjects and issues involved; and (4) the Internet address of a summary of not more than 100 words in length of the proposed rule, in plain language, that shall be posted on the Internet website under section 206(d) of the E-Government Act of 2002 ([44 U.S.C. 3501](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title44-section3501&num=0&edition=prelim) note) (commonly known as regulations.gov). Except when notice or hearing is required by statute, this subsection does not apply— (A) to interpretative rules, general statements of policy, or rules of agency organization, procedure, or practice; or (B) when the agency for good cause finds (and incorporates the finding and a brief statement of reasons therefor in the rules issued) that notice and public procedure thereon are impracticable, unnecessary, or contrary to the public interest. **(c)** After notice required by this section, the agency shall give interested persons an opportunity to participate in the rule making through subm

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42 U.S.C. § 12721 — Labor

**(a) In general** Any contract for the construction of affordable housing with 12 or more units assisted with funds made available under this part shall contain a provision requiring that not less than the wages prevailing in the locality, as predetermined by the Secretary of Labor pursuant to sections 3141–3144, 3146, and 3147 of title 40, shall be paid to all laborers and mechanics employed in the development of affordable housing involved, and participating jurisdictions shall require certification as to compliance with the provisions of this section prior to making any payment under such contract. **(b) Waiver** Subsection (a) shall not apply if the individual receives no compensation or is paid expenses, reasonable benefits, or a nominal fee to perform the services for which the individual volunteered and such persons are not otherwise employed at any time in the construction work.

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42 U.S.C. § 12746 — Authority

The Secretary is authorized to make funds available to participating jurisdictions for investment to increase the number of families served with decent, safe, sanitary, and affordable housing and expand the long-term supply of affordable housing in accordance with provisions of this part.

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