42 U.S.C. § 12749 — Repayment of investment

Page 8465 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 12749 1 So in original. Probably should be section ‘‘12753’’. Pub. L. 104–330, title V, § 505(b), Oct. 26, 1996, 110 Stat. 4044, provided that: ‘‘The amendments under subsection (a) [amending this section and section 12838 of this title] shall apply with respect to amounts made avail- able for assistance under title II of the Cranston-Gon- zalez National Affordable Housing Act [42 U.S.C. 12721 et seq.] for fiscal year 1998 and fiscal years thereafter.’’ EFFECTIVE DATE OF 1992 AMENDMENT Amendment by section 211(a)(2) of Pub. L. 102–550 ap- plicable with respect to fiscal year 1993 and thereafter, see section 211(b) of Pub. L. 102–550, set out as a note under section 12704 of this title. Amendment by sections 202(b) and 203(b) of Pub. L. 102–550 applicable to unexpended funds allocated under subchapter II of this chapter in fiscal year 1992, except as otherwise specifically provided, see section 223 of Pub. L. 102–550, set out as a note under section 12704 of this title. APPLICABILITY OF GRANT THRESHOLDS Grant thresholds provided for in subsec. (b) of this section as amended by Pub. L. 102–550 to apply notwith- standing any other provision of law, see section 202(c) of Pub. L. 102–550, set out as a note under section 12746 of this title. EXPEDITED ISSUANCE OF REGULATION Pub. L. 102–550, title II, § 211(a)(3), Oct. 28, 1992, 106 Stat. 3757, provided that: ‘‘The regulation referred to in the amendment made by paragraph (2)(D) [amending this section] shall take effect not later than the expira- tion of the 90-day period beginning on the date of the enactment of this Act [Oct. 28, 1992]. The regulation shall not be subject to the requirements of subsections (b) and (c) of section 553 of title 5, United States Code, or section 7(o) of the Department of Housing and Urban Development Act [42 U.S.C. 3535(o)].’’ § 12748. HOME Investment Trust Funds (a) Establishment The Secretary shall establish for each partici- pating jurisdiction a HOME Investment Trust Fund, which shall be an account (or accounts as provided in section 12749(c) of this title) for use solely to invest in affordable housing within the participating jurisdiction’s boundaries or within the boundaries of contiguous jurisdictions in joint projects which serve residents from both jurisdictions in accordance with the provisions of this part. (b) Line of credit The Secretary shall establish a line of credit in the HOME Investment Trust Fund of each participating jurisdiction, which line of credit shall include— (1) funds allocated or reallocated to the par- ticipating jurisdiction under section 12747 of this title, and (2) any payment or repayment made pursu- ant to section 12749 of this title. (c) Reductions A participating jurisdiction’s line of credit shall be reduced by— (1) funds drawn from the HOME Investment Trust Fund by the participating jurisdiction, (2) funds expiring under subsection (g), and (3) any penalties assessed by the Secretary under section 12754 1 of this title. (d) Certification A participating jurisdiction may draw funds from its HOME Investment Trust Fund, but not to exceed the remaining line of credit, only after providing certification that the funds shall be used pursuant to the participating jurisdiction’s approved housing strategy and in compliance with all requirements of this subchapter. When such certification is received, the Secretary shall immediately disburse such funds in accord- ance with the form of the assistance determined by the participating jurisdiction. (e) Investment within 15 days The participating jurisdiction shall, not later than 15 days after funds are drawn from the ju- risdiction’s HOME Investment Trust Fund, in- vest such funds, together with any interest earned thereon, in the affordable housing for which the funds were withdrawn. (f) No interest or fees The Secretary shall not charge any interest or levy any other fee with regard to funds in a HOME Investment Trust Fund. (g) Expiration of right to draw funds If any funds becoming available to a partici- pating jurisdiction under this subchapter are not placed under binding commitment to afford- able housing within 24 months after the last day of the month in which such funds are deposited in the jurisdiction’s HOME Investment Trust Fund, the jurisdiction’s right to draw such funds from the HOME Investment Trust Fund shall ex- pire. The Secretary shall reduce the line of cred- it in the participating jurisdiction’s HOME In- vestment Trust Fund by the expiring amount and shall reallocate the funds by formula in ac- cordance with section 12747(d) of this title. (h) Administrative provision The Secretary shall keep each participating jurisdiction informed of the status of its HOME Investment Trust Fund, including the status of amounts under various stages of commitment. (Pub. L. 101–625, title II, § 218, Nov. 28, 1990, 104 Stat. 4109; Pub. L. 102–550, title II, §§ 203(c), 221, Oct. 28, 1992, 106 Stat. 3752, 3762.) Editorial Notes AMENDMENTS 1992—Subsec. (a). Pub. L. 102–550, § 221, inserted ‘‘or within the boundaries of contiguous jurisdictions in joint projects which serve residents from both jurisdic- tions’’ after ‘‘boundaries’’. Subsec. (g). Pub. L. 102–550, § 203(c), substituted ‘‘If’’ for ‘‘Except as provided in section 12747(b)(1)(A)(ii) of this title, if’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1992 AMENDMENT Amendment by Pub. L. 102–550 applicable to unex- pended funds allocated under subchapter II of this chapter in fiscal year 1992, except as otherwise specifi- cally provided, see section 223 of Pub. L. 102–550, set out as a note under section 12704 of this title. § 12749. Repayment of investment (a) In general Any repayment of funds drawn from a jurisdic- tion’s HOME Investment Trust Fund, and any payment of interest or other return on the in- vestment of such funds, shall be deposited in Page 8466 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 12750 such jurisdiction’s HOME Investment Trust Fund, except that, if the jurisdiction is not a participating jurisdiction when such payment or repayment is made, the amount of such pay- ment or repayment shall be reallocated in ac- cordance with section 12747(d) of this title. (b) Assurance of repayment Each participating jurisdiction shall enter into an agreement with the Secretary ensuring that funds invested in affordable housing under this part are repayable when the housing no longer qualifies as affordable housing. Any re- payment under the previous sentence shall be for deposit in the HOME Investment Trust Fund of the jurisdiction making the investment; ex- cept that if such jurisdiction is not a partici- pating jurisdiction when such repayment is made, the amount of such repayment shall be reallocated in accordance with section 12747(d) of this title. (c) Availability The Secretary shall take such actions as are necessary to ensure that any repayments depos- ited in a HOME Investment Trust Fund in ac- cordance with this section shall be immediately available to the participating jurisdiction for in- vestment subject to the provisions of this part that apply to funds that are allocated under sec- tion 12747 of this title. Actions authorized under the preceding sentence may include authorizing the establishment for a participating jurisdic- tion of a HOME Investment Trust Fund account outside of the Federal Government that, under arrangements satisfactory to the Secretary, shall be used solely to invest in affordable hous- ing within the participating jurisdiction’s boundaries in accordance with the provisions of this subchapter. Such accounts shall be estab- lished in such a manner that repayments are not receipts or collections of the Federal Govern- ment. (Pub. L. 101–625, title II, § 219, Nov. 28, 1990, 104 Stat. 4110.) § 12750. Matching requirements (a) Contribution Each participating jurisdiction shall make contributions to housing that qualifies as af- fordable housing under this subchapter that total, throughout a fiscal year, not less than 25 percent of the funds drawn from the jurisdic- tion’s HOME Investment Trust Fund in such fis- cal year. Such contributions shall be in addition to any amounts made available under section 12746(3)(A)(ii) of this title. (b) Recognition (1) In general A contribution shall be recognized for pur- poses of subsection (a) only if it— (A) is made with respect to housing that qualifies as affordable housing under section 12745 of this title; or (B) is made with respect to any portion of a project not less than 50 percent of the units of which qualify as affordable housing under section 12745 of this title. (2) Administrative expenses Contributions for administrative expenses may not be recognized for purposes of sub- section (a). (c) Form Such contributions may be in the form of— (1) cash contributions from non-Federal re- sources, which may not include funds from a grant made under section 5306(b) or section 5306(d) of this title; (2) the value of taxes, fees, or other charges that are normally and customarily imposed but are waived, foregone, or deferred in a man- ner that achieves affordability of housing as- sisted under this subchapter; (3) the value of land or other real property as appraised according to procedures acceptable to the Secretary; (4) the value of investment in on-site and off-site infrastructure directly required for af- fordable housing assisted under this sub- chapter; (5) Redesignated (4) (6) up to— (A) 50 percent of proceeds from bond fi- nancing validly issued by a State or local government, agency or instrumentality thereof, or political subdivision thereof, and repayable with revenues derived from a mul- tifamily affordable housing project financed, and (B) 25 percent of proceeds from bond fi- nancing validly issued by a State or local government, agency or instrumentality thereof, or political subdivision thereof, and repayable with revenues derived from a sin- gle-family project financed, but not more than 25 percent of the contribu- tion required under subsection (a) may be de- rived from these sources; (7) the reasonable value of any site-prepara- tion and construction materials and any do- nated or voluntary labor in connection with the site-preparation for, or construction or re- habilitation of, affordable housing; and (8) such other contributions to affordable housing as the Secretary considers appro- priate. (d) Reduction of requirement (1) In general The Secretary shall reduce the matching re- quirement under subsection (a) with respect to any funds drawn from a jurisdiction’s HOME Investment Trust Fund Account during a fis- cal year by— (A) 50 percent for a jurisdiction that cer- tifies that it is in fiscal distress; and (B) 100 percent for a jurisdiction that cer- tifies that it is in severe fiscal distress. (2) Definitions For purposes of this section— (A) ‘‘fiscal distress’’ means a jurisdiction other than a State that satisfies 1 of the dis- tress criteria set forth in paragraph (3); and (B) ‘‘severe fiscal distress’’ means a juris- diction other than a State that satisfies both of the distress criteria set forth in paragraph (3).