42 U.S.C. § 12773 — Housing education and organizational

Page 8470 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 12772 consistent with section 12773 of this title, with preference to community housing development organizations serving the jurisdiction from which the funds were recaptured. (c) Direct reallocation criteria Insofar as practicable, direct reallocations under this section shall be made according to the selection criteria established under section 12747(c) of this title. (Pub. L. 101–625, title II, § 231, Nov. 28, 1990, 104 Stat. 4114; Pub. L. 102–550, title II, § 212(a), (b), Oct. 28, 1992, 106 Stat. 3757.) Editorial Notes AMENDMENTS 1992—Subsec. (a). Pub. L. 102–550 substituted ‘‘24’’ for ‘‘18’’ in first sentence and inserted after second sen- tence ‘‘If during the first 24 months of its participation under this subchapter, a participating jurisdiction is unable to identify a sufficient number of capable com- munity housing development organizations, then up to 20 percent of the funds allocated to that jurisdiction under this section, but not to exceed $150,000, may be made available to carry out activities that develop the capacity of community housing development organiza- tions in that jurisdiction.’’ Subsec. (b). Pub. L. 102–550, § 212(a), substituted ‘‘24’’ for ‘‘18’’. 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. § 12772. Project-specific assistance to community housing development organizations (a) In general Amounts reserved under section 12771 of this title may be used for activities eligible under section 12742 of this title and, in amounts not to exceed 10 percent of the amounts so reserved, for other activities specified under this section. (b) Project-specific technical assistance and site control loans (1) In general Amounts reserved under section 12771 of this title may be used to provide technical assist- ance and site control loans to community housing development organizations in the early stages of site development for an eligible project. Such loans shall not exceed amounts that the jurisdiction determines to be cus- tomary and reasonable project preparation costs allowable under paragraph (2). (2) Allowable expenses A loan under this subsection may be pro- vided to cover project expenses necessary to determine project feasibility (including costs of an initial feasibility study), consulting fees, costs of preliminary financial applications, legal fees, architectural fees, engineering fees, engagement of a development team, site con- trol and title clearance. (3) Repayment A community housing development organi- zation that receives a loan under this sub- section shall repay the loan to the partici- pating jurisdiction’s HOME Investment Trust Fund from construction loan proceeds or other project income. The participating jurisdiction may waive repayment of the loan, in part or in whole, if there are impediments to project de- velopment that the participating jurisdiction determines are reasonably beyond the control of the borrower. (c) Project-specific seed money loans (1) In general Amounts reserved under section 12771 of this title may be used to provide loans to commu- nity housing development organizations to cover preconstruction project costs that the jurisdiction determines to be customary and reasonable, including, but not limited to the costs of obtaining firm construction loan com- mitments, architectural plans and specifica- tions, zoning approvals, engineering studies and legal fees. (2) Eligible sponsors A loan under this subsection may be pro- vided only to a community housing develop- ment organization that has, with respect to the project concerned, site control, a prelimi- nary financial commitment, and a capable de- velopment team. (3) Repayment A community housing development organi- zation that receives a loan under this sub- section shall repay the loan to the jurisdic- tion’s HOME Investment Trust Fund from con- struction loan proceeds or other project in- come. The participating jurisdiction may waive repayment of the loan, in whole or in part, if there are impediments to project de- velopment that the participating jurisdiction determines are reasonably beyond the control of the borrower. (Pub. L. 101–625, title II, § 232, Nov. 28, 1990, 104 Stat. 4115.) § 12773. Housing education and organizational support (a) In general The Secretary is authorized to provide edu- cation and organizational support assistance, in conjunction with other assistance made avail- able under this part— (1) to facilitate the education of low-income homeowners and tenants; (2) to promote the ability of community housing development organizations, including community land trusts, to maintain, rehabili- tate and construct housing for low-income and moderate-income families in conformance with the requirements of this subchapter; and (3) to achieve the purposes under paragraphs (1) and (2) by helping women who reside in low- and moderate-income neighborhoods re- habilitate and construct housing in the neigh- borhoods. (b) Eligible activities Assistance under this section may be used only for the following eligible activities: (1) Organizational support Organizational support assistance may be made available to community housing devel- Page 8471 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 12773 opment organizations to cover operational ex- penses and to cover expenses for training and technical, legal, engineering and other assist- ance to the board of directors, staff, and mem- bers of the community housing development organization. (2) Housing education Housing education assistance may be made available to community housing development organizations to cover expenses for providing or administering programs for educating, counseling, or organizing homeowners and tenants who are eligible to receive assistance under other provisions of this subchapter. (3) Program-wide support of nonprofit develop- ment and management Technical assistance, training, and con- tinuing support may be made available to eli- gible community housing development organi- zations for managing and conserving prop- erties developed under this subchapter. (4) Benevolent loan funds Technical assistance may be made available to increase the investment of private capital in housing for very low-income families, par- ticularly by encouraging the establishment of benevolent loan funds through which private financial institutions will accept deposits at below-market interest rates and make those funds available at favorable rates to devel- opers of low-income housing and to low-in- come homebuyers. (5) Community development banks and credit unions Technical assistance may be made available to establish privately owned, local community development banks and credit unions to fi- nance affordable housing. (6) Community land trusts Organizational support, technical assist- ance, education, training, and continuing sup- port under this subsection may be made avail- able to community land trusts (as such term is defined in subsection (f)) and to community groups for the establishment of community land trusts. (7) Facilitating women in homebuilding profes- sions Technical assistance may be made available to businesses, unions, and organizations in- volved in construction and rehabilitation of housing in low- and moderate-income areas to assist women residing in the area to obtain jobs involving such activities, which may in- clude facilitating access by such women to, and providing, apprenticeship and other train- ing programs regarding nontraditional skills, recruiting women to participate in such pro- grams, providing continuing support for women at job sites, counseling and educating businesses regarding suitable work environ- ments for women, providing information to such women regarding opportunities for estab- lishing small housing construction and reha- bilitation businesses, and providing materials and tools for training such women (in an amount not exceeding 10 percent of any assist- ance provided under this paragraph). The Sec- retary shall give priority under this paragraph to providing technical assistance for organiza- tions rehabilitating single family or multi- family housing owned or controlled by the Secretary pursuant to title II of the National Housing Act [12 U.S.C. 1707 et seq.] and which have women members in occupations in which women constitute 25 percent or less of the total number of workers in the occupation (in this section referred to as ‘‘nontraditional oc- cupations’’). (c) Delivery of assistance The Secretary shall provide this assistance only through contract— (1) with a nonprofit intermediary organiza- tion that, in the determination of the Sec- retary— (A) customarily provides, in more than one community, services related to the provision of decent housing that is affordable to low- income and moderate-income persons or the revitalization of deteriorating neighbor- hoods; (B) has demonstrated experience in pro- viding a range of assistance (such as financ- ing, technical assistance, construction and property management assistance, capacity building and training) to community hous- ing development organizations or similar or- ganizations that engage in community revi- talization; (C) has demonstrated the ability to pro- vide technical assistance and training for community-based developers of affordable housing; (D) has described the uses to which such assistance will be put and the intended bene- ficiaries of the assistance; and (E) in the case of activities under sub- section (b)(7), is a community-based organi- zation (as such term is defined in section 4 of the Job Training Partnership Act) or public housing agency, which has demonstrated ex- perience in preparing women for apprentice- ship training in construction or admin- istering programs for training women for construction or other nontraditional occupa- tions (and such organizations may use as- sistance for activities under such subsection to employ women in housing construction and rehabilitation activities to the extent that the organization has the capacity to conduct such activities); or (2) with another organization, if a partici- pating jurisdiction demonstrates that the or- ganization is qualified to carry out eligible ac- tivities and that the jurisdiction would not be served in a timely manner by intermediaries specified under paragraph (1). Contracts under paragraph (2) shall be for ac- tivities specified in an application from the par- ticipating jurisdiction, which application shall include a certification that the activities are necessary to the effective implementation of the participating jurisdiction’s housing strategy. (d) Limitations Contracts under this section with any one con- tractor for a fiscal year may not— Page 8472 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 12774 (1) exceed 40 percent of the amount appro- priated for this section for such fiscal year; or (2) provide more than 20 percent of the oper- ating budget (which shall not include funds that are passed through to community hous- ing development organizations) of the con- tracting organization for any one year. (e) Single-State contractors Not less than 25 percent of the funds made available for this section in an appropriations Act in any fiscal year shall be made available for eligible contractors that have worked pri- marily in one State. The Secretary shall provide assistance under this section, to the extent ap- plications are submitted and approved, to con- tractors in each of the geographic regions hav- ing a regional office of the Department of Hous- ing and Urban Development. (f) ‘‘Community land trust’’ defined For purposes of this section, the term ‘‘com- munity land trust’’ means a community housing development organization (except that the re- quirements under subparagraphs (C) and (D) of section 12704(6) of this title shall not apply for purposes of this subsection)— (1) that is not sponsored by a for-profit orga- nization; (2) that is established to carry out the ac- tivities under paragraph (3); (3) that— (A) acquires parcels of land, held in per- petuity, primarily for conveyance under long-term ground leases; (B) transfers ownership of any structural improvements located on such leased parcels to the lessees; and (C) retains a preemptive option to pur- chase any such structural improvement at a price determined by formula that is designed to ensure that the improvement remains af- fordable to low- and moderate-income fami- lies in perpetuity; (4) whose corporate membership that is open to any adult resident of a particular geo- graphic area specified in the bylaws of the or- ganization; and (5) whose board of directors— (A) includes a majority of members who are elected by the corporate membership; and (B) is composed of equal numbers of (i) les- sees pursuant to paragraph (3)(B), (ii) cor- porate members who are not lessees, and (iii) any other category of persons described in the bylaws of the organization. (Pub. L. 101–625, title II, § 233, Nov. 28, 1990, 104 Stat. 4116; Pub. L. 102–550, title II, § 213, Oct. 28, 1992, 106 Stat. 3757; Pub. L. 111–8, div. I, title II, § 229(1), (2), Mar. 11, 2009, 123 Stat. 978.) Editorial Notes REFERENCES IN TEXT The National Housing Act, referred to in subsec. (b)(7), is act June 27, 1934, ch. 847, 48 Stat. 1246. Title II of the Act is classified principally to subchapter II (§ 1707 et seq.) of chapter 13 of Title 12, Banks and Bank- ing. For complete classification of this Act to the Code, see section 1701 of Title 12 and Tables. Section 4 of the Job Training Partnership Act, re- ferred to in subsec. (c)(1)(E), which was classified to section 1503 of Title 29, Labor, was repealed by Pub. L. 105–220, title I, § 199(b)(2), (c)(2)(B), Aug. 7, 1998, 112 Stat. 1059, effective July 1, 2000. Pursuant to former section 2940(b) of Title 29, references to a provision of the Job Training Partnership Act, effective Aug. 7, 1998, were deemed to refer to that provision or the corresponding provision of the Workforce Investment Act of 1998, Pub. L. 105–220, Aug. 7, 1998, 112 Stat. 936, and, effective July 1, 2000, were deemed to refer to the corresponding provi- sion of the Workforce Investment Act of 1998. The Workforce Investment Act of 1998 was repealed by Pub. L. 113–128, title V, §§ 506, 511(a), July 22, 2014, 128 Stat. 1703, 1705, effective July 1, 2015. Pursuant to section 3361(a) of Title 29, references to a provision of the Workforce Investment Act of 1998 are deemed to refer to the corresponding provision of the Workforce Inno- vation and Opportunity Act, Pub. L. 113–128, July 22, 2014, 128 Stat. 1425, effective July 1, 2015. For complete classification of the Job Training Partnership Act and the Workforce Investment Act of 1998 to the Code, see Tables. For complete classification of the Workforce Innovation and Opportunity Act to the Code, see Short Title note set out under section 3101 of title 29 and Ta- bles. AMENDMENTS 2009—Subsec. (d)(1). Pub. L. 111–8, § 229(1), substituted ‘‘40’’ for ‘‘20’’. Subsec. (e). Pub. L. 111–8, § 229(2), substituted ‘‘25’’ for ‘‘40’’. 1992—Subsec. (a)(2). Pub. L. 102–550, § 213(a)(1), in- serted ‘‘, including community land trusts,’’ after ‘‘or- ganizations’’. Subsec. (a)(3). Pub. L. 102–550, § 213(b)(1), added par. (3). Subsec. (b)(6). Pub. L. 102–550, § 213(a)(2), added par. (6). Subsec. (b)(7). Pub. L. 102–550, § 213(b)(2), added par. (7). Subsec. (c)(1)(E). Pub. L. 102–550, § 213(b)(3), added sub- par. (E). Subsec. (e). Pub. L. 102–550, § 213(b)(4), inserted at end ‘‘The Secretary shall provide assistance under this sec- tion, to the extent applications are submitted and ap- proved, to contractors in each of the geographic regions having a regional office of the Department of Housing and Urban Development.’’ Subsec. (f). Pub. L. 102–550, § 213(a)(3), added subsec. (f). 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. § 12774. Other requirements (a) Tenant participation plan A community housing development organiza- tion that receives assistance under this part shall provide a plan for and follow a program of tenant participation in management decisions and shall adhere to a fair lease and grievance procedure approved by the participating juris- diction. (b) Limitation on assistance A community housing development organiza- tion may not receive assistance under this sub- chapter for any fiscal year in an amount that provides more than 50 percent of the organiza- tion’s total operating budget in the fiscal year or $50,000 annually, whichever is greater.