42 U.S.C. § 12750 — Matching requirements

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). Page 8467 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 12750 (3) Distress criteria For purposes of a jurisdiction other than a State certifying that it is distressed, the fol- lowing criteria shall apply: (A) Poverty rate The average poverty rate in the jurisdic- tion for the calendar year immediately pre- ceding the year in which its fiscal year be- gins was equal to or greater than 125 percent of the average national poverty rate during such calendar year (as determined according to information of the Bureau of the Census). (B) Per capita income The average per capita income in the juris- diction for the calendar year immediately preceding the year in which its fiscal year begins was less than 75 percent of the aver- age national per capita income during such calendar year (as determined according to information of the Bureau of the Census). (4) States In determining the degree to which a juris- diction that is a State is distressed, the Sec- retary shall take into consideration the State’s fiscal capacity and expenditure needs as determined by a national organization which compiles the relevant data. (5) Waiver in disaster areas If a participating jurisdiction is located in an area in which a declaration of a disaster pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act [42 U.S.C. 5121 et seq.] is in effect for any part of a fiscal year, the Secretary may reduce the matching requirement for that fiscal year under subsection (a) with respect to any funds drawn from a jurisdiction’s HOME Investment Trust Fund Account during that fiscal year by up to 100 percent. (Pub. L. 101–625, title II, § 220, Nov. 28, 1990, 104 Stat. 4111; Pub. L. 102–550, title II, §§ 207(c), 210(a)–(c), Oct. 28, 1992, 106 Stat. 3753, 3755; Pub. L. 103–233, title II, § 204, Apr. 11, 1994, 108 Stat. 364.) Editorial Notes REFERENCES IN TEXT The Robert T. Stafford Disaster Relief and Emer- gency Assistance Act, referred to in subsec. (d)(5), is Pub. L. 93–288, May 22, 1974, 88 Stat. 143, which is classi- fied principally to chapter 68 (§ 5121 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 5121 of this title and Tables. AMENDMENTS 1994—Subsec. (a). Pub. L. 103–233 amended heading and text of subsec. (a) generally. Prior to amendment, text read as follows: ‘‘Each participating jurisdiction shall make contributions to housing that qualifies as affordable housing under this subchapter that total, throughout a fiscal year, not less than— ‘‘(1) 25 percent of the total funds drawn from the ju- risdiction’s HOME Investment Trust Fund in that fis- cal year with respect to rental assistance, housing re- habilitation and substantial rehabilitation; and ‘‘(2) 30 percent of the total funds drawn from the ju- risdiction’s HOME Investment Trust Fund in that fis- cal year with respect to new construction. Such contributions shall be in addition to any amounts made available under section 12746(3)(A)(ii) of this title.’’ 1992—Subsec. (a). Pub. L. 102–550, § 210(a)(4), sub- stituted ‘‘housing that qualifies as affordable housing under this subchapter’’ for ‘‘affordable housing assisted under this subchapter’’ in introductory provisions. Subsec. (a)(1). Pub. L. 102–550, § 210(a)(1), substituted ‘‘, housing rehabilitation and substantial rehabilita- tion; and’’ for ‘‘and housing rehabilitation;’’. Subsec. (a)(2). Pub. L. 102–550, § 210(a)(2), substituted ‘‘30’’ for ‘‘33’’ and ‘‘new construction.’’ for ‘‘substantial rehabilitation; and’’. Subsec. (a)(3). Pub. L. 102–550, § 210(a)(3), struck out par. (3) which read as follows: ‘‘50 percent of the total funds drawn from the jurisdiction’s HOME Investment Trust Fund in that fiscal year with respect to new con- struction.’’ Subsec. (b)(2). Pub. L. 102–550, § 207(c)(1), substituted ‘‘may not be recognized for purposes of subsection (a)’’ for ‘‘shall be recognized only up to an amount equal to 7 percent of funds provided for investment under this subchapter’’. Subsec. (c)(2). Pub. L. 102–550, § 207(c)(2), redesignated par. (3) as (2) and struck out former par. (2) which read as follows: ‘‘payment of administrative expenses, as de- fined by the Secretary, from non-Federal resources, which may include funds from a grant made under sec- tion 5306(b) or section 5306(d) of this title;’’. Subsec. (c)(3). Pub. L. 102–550, § 210(b)(1), which di- rected the striking of ‘‘and’’ at end of par. (4), was exe- cuted by striking ‘‘and’’ at end of par. (3) to reflect the probable intent of Congress and the redesignation of par. (4) as (3). See below. Pub. L. 102–550, § 207(c)(2)(B), redesignated par. (4) as (3). Former par. (3) redesignated (2). Subsec. (c)(4). Pub. L. 102–550, § 210(b)(2), which di- rected the substitution of a semicolon for the period at end of par. (5), was executed by making the substi- tution at end of par. (4) to reflect the probable intent of Congress and the redesignation of par. (5) as (4). See below. Pub. L. 102–550, § 207(c)(2)(B), redesignated par. (5) as (4). Former par. (4) redesignated (3). Subsec. (c)(5). Pub. L. 102–550, § 207(c)(2)(B), redesig- nated par. (5) as (4). Subsec. (c)(6) to (8). Pub. L. 102–550, § 210(b)(3), added pars. (6) to (8). Subsec. (d). Pub. L. 102–550, § 210(c), added subsec. (d) and struck out former subsec. (d) which read as follows: ‘‘If a jurisdiction demonstrates to the satisfaction of the Secretary that a reduction of the matching require- ment specified in subsection (a) of this section is nec- essary to permit the jurisdiction to carry out the pur- poses of this subchapter, the Secretary may reduce the matching requirement during a period not to exceed 3 years after the jurisdiction is first designated as a par- ticipating jurisdiction. Such reduction shall be not more than 75 percent in the first year, not more than 50 percent in the second year, and not more than 25 per- cent in the third year.’’ Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1994 AMENDMENT Amendment by Pub. L. 103–233 applicable with re- spect to any amounts made available to carry out this subchapter after Apr. 11, 1994, and any amounts made available to carry out this subchapter before that date that remain uncommitted on that date, with Secretary to issue any regulations necessary to carry out such amendment not later than end of 45-day period begin- ning on that date, see section 209 of Pub. L. 103–233, set out as a note under section 5301 of this title. EFFECTIVE DATE OF 1992 AMENDMENT Pub. L. 102–550, title II, § 210(d), Oct. 28, 1992, 106 Stat. 3756, provided that: ‘‘The amendments made by this section [amending this section] shall apply with re- Page 8468 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 12751 spect to fiscal year 1993 and each fiscal year there- after.’’ Amendment by section 207(c) of Pub. L. 102–550 appli- cable 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. § 12751. Private-public partnership Each participating jurisdiction shall make all reasonable efforts, consistent with the purposes of this subchapter, to maximize participation by the private sector, including nonprofit organiza- tions and for-profit entities, in the implementa- tion of the jurisdiction’s housing strategy, in- cluding participation in the financing, develop- ment, rehabilitation and management of afford- able housing. Nothing in the previous sentence shall preclude public housing authorities from fully participating in the implementation of a jurisdiction’s housing strategy. (Pub. L. 101–625, title II, § 221, Nov. 28, 1990, 104 Stat. 4112.) § 12752. Distribution of assistance (a) Local Each participating jurisdiction shall, insofar as is feasible, distribute assistance under this part geographically within its boundaries and among different categories of housing need, ac- cording to the priorities of housing need identi- fied in the jurisdiction’s approved housing strat- egy. (b) State Participating States shall be responsible for distributing assistance throughout the State ac- cording to the State’s assessment of the geo- graphical distribution of the housing need with- in the State, as identified in the State’s ap- proved housing strategy. Participating States shall distribute assistance to rural areas in amounts that take into account the nonmetro- politan share of the State’s total population and objective measures of rural housing need, such as poverty and substandard housing, as set forth in the State’s housing strategy approved under section 12705 of this title. To the extent the need is within the boundaries of a participating unit of general local government, the State and the unit of general local government shall coordi- nate activities to address that need. (Pub. L. 101–625, title II, § 222, Nov. 28, 1990, 104 Stat. 4112.) § 12753. Penalties for misuse of funds If the Secretary finds after reasonable notice and opportunity for hearing that a participating jurisdiction has failed to comply substantially with any provision of this part and until the Secretary is satisfied that there is no longer any such failure to comply, the Secretary shall re- duce the line of credit in the participating juris- diction’s HOME Investment Trust Fund by the amount of any expenditures that were not in ac- cordance with the requirements of this sub- chapter, and the Secretary may— (1) prevent withdrawals from the partici- pating jurisdiction’s HOME Investment Trust Fund for activities affected by such failure to comply; (2) restrict the participating jurisdiction’s activities under this subchapter to activities that conform to one or more model programs made available under section 12743 of this title; or (3) remove the participating jurisdiction from participation in allocations or realloca- tions of funds made available under this part. (Pub. L. 101–625, title II, § 223, Nov. 28, 1990, 104 Stat. 4112.) § 12754. Limitation on jurisdictions under court order (a) In general Notwithstanding any other provision of this Act, the Secretary shall ensure that funds pro- vided under this part are not employed to carry out housing remedies or to pay fines, penalties, or costs associated with an action in which— (1) a participating jurisdiction has been ad- judicated, by a Federal, State, or local court, to be in violation of title VI of the Civil Rights Act of 1964 [42 U.S.C. 2000d et seq.], the Fair Housing Act [42 U.S.C. 3601 et seq.], or any other Federal, State, or local law pro- moting fair housing or prohibiting discrimina- tion, or (2) a settlement has been entered into in any case where claims of such violations have been asserted against a participating jurisdiction, except to the extent permitted by subsection (b). (b) Remedial use of funds permitted In the case of settlement described in sub- section (a)(2), a jurisdiction may use funds pro- vided under this Act to carry out housing rem- edies with eligible activities. (Pub. L. 101–625, title II, § 224, Nov. 28, 1990, 104 Stat. 4113.) Editorial Notes REFERENCES IN TEXT This Act, referred to in text, is Pub. L. 101–625, Nov. 28, 1990, 104 Stat. 4079, known as the Cranston-Gonzalez National Affordable Housing Act. For complete classi- fication of this Act to the Code, see Short Title note set out under section 12701 of this title and Tables. The Civil Rights Act of 1964, referred to in subsec. (a)(1), is Pub. L. 88–352, July 2, 1964, 78 Stat. 241. Title VI of the Act is classified generally to subchapter V (§ 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 Fair Housing Act, referred to in subsec. (a)(1), is title VIII of Pub. L. 90–284, Apr. 11, 1968, 82 Stat. 81, which is classified principally to subchapter I (§ 3601 et seq.) of chapter 45 of this title. For complete classifica- tion of this Act to the Code, see Short Title note set out under section 3601 of this title and Tables. § 12755. Tenant and participant protections (a) Lease The lease between a tenant and an owner of af- fordable housing assisted under this subchapter for rental shall be for not less than one year, un- less by mutual agreement between the tenant and the owner, and shall contain such terms and conditions as the Secretary shall determine to be appropriate.