42 U.S.C. § 1485 — Housing and related facilities for elderly

Page 4774 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1485 1 See References in Text note below. 117–328, set out as a note under section 1701q of Title 12, Banks and Banking. EFFECTIVE DATE OF 2008 AMENDMENT Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of Title 7, Agriculture. CONSTRUCTION OF 2022 AMENDMENT Nothing in amendment made by Pub. L. 117–328 to be construed to preempt or limit applicability of certain State or local laws relating to smoke alarms, see sec- tion 601(i) of div. AA of Pub. L. 117–328, set out as a note under section 1701q of Title 12, Banks and Banking. CONSTRUCTION OF 2020 AMENDMENT Nothing in amendment made by Pub. L. 116–260 to be construed to preempt or limit applicability of certain State or local laws relating to carbon monoxide de- vices, see section 101(j) of div. Q of Pub. L. 116–260, set out as a note under section 1437a of this title. § 1485. Housing and related facilities for elderly persons and families or other persons and families of low income (a) Direct loans; authorization; terms and condi- tions; revolving fund; appropriation The Secretary is authorized to make loans to private nonprofit corporations and consumer co- operatives and Indian tribes to provide rental or cooperative housing and related facilities for el- derly or handicapped persons or families of low or moderate income or other persons and fami- lies of low income in rural areas, in accordance with terms and conditions substantially iden- tical with those specified in section 1472 of this title; except that— (1) no such loan shall exceed the develop- ment cost or the value of the security, which- ever is less; (2) such a loan may be made for a period of up to 30 years from the making of the loan; and (3) such a loan, when made to a consumer co- operative for cooperative housing purposes, may, notwithstanding any other provision of law, be made upon the condition that any per- son who is admitted as an eligible member and tenant of the cooperative may not subse- quently be deprived of his membership or ten- ancy by reason of his no longer meeting the income eligibility requirements established by the Secretary. There is authorized to be appropriated not to ex- ceed $50,000,000, which shall constitute a revolv- ing fund to be used by the Secretary in carrying out this subsection. (b) Insurance of loans; authorization; terms and conditions; utilization of Agricultural Credit Insurance Fund The Secretary is authorized to insure and make commitments to insure loans made to any individual, corporation, association, trust, In- dian tribe, or partnership to provide rental or cooperative housing and related facilities for el- derly or handicapped persons or families or other persons and families of moderate income in rural areas, in accordance with terms and conditions substantially identical with those specified in section 1472 of this title; except that— (1) no such loan shall exceed the develop- ment cost or the value of the security, which- ever is less; (2) such a loan may be made for a period of up to 30 years from the making of the loan, but the Secretary may provide for periodic payments based on an amortization schedule of 50 years with a final payment of the balance due at the end of the term of the loan; (3) for insuring such loans, the Secretary shall utilize the Agricultural Credit Insurance Fund subject to all the provisions of section 1929 of title 7 and the second and third sen- tences of section 1928 1 of title 7, including the authority in section 1929(f)(1) 1 of title 7 to uti- lize the insurance fund to make, sell, and in- sure loans which could be insured under this subsection; but the aggregate of the principal amounts of such loans made by the Secretary and not disposed of shall not exceed $10,000,000 outstanding at any one time; and the Sec- retary may take liens running to the United States though the notes may be held by other lenders; (4) such a loan, when made to a consumer co- operative for cooperative housing purposes, may, notwithstanding any other provision of law, be made upon the condition that any per- son who is admitted as an eligible member and tenant of the cooperative may not subse- quently be deprived of his membership or ten- ancy by reason of his no longer meeting the income eligibility requirements established by the Secretary; (5) loans may be made to owners who are otherwise eligible under this section to pur- chase and convert single-family residences to rental units of two or more dwellings; and (6) the Secretary may make a new loan to the current borrower to finance the final pay- ment of the original loan for an additional pe- riod not to exceed twenty years, if— (A) the Secretary determines— (i) it is more cost-efficient and serves the tenant base more effectively to maintain the current property than to build a new property in the same location; or (ii) the property has been maintained to such an extent that it warrants retention in the current portfolio because it can be expected to continue providing decent, safe, and affordable rental units for the balance of the loan; and (B) the Secretary determines— (i) current market studies show that a need for low-income rural rental housing still exists for that area; and (ii) any other criteria established by the Secretary has been met. (c) Equity recapture loans and loans to nonprofit organizations and public agencies With respect to a loan made or insured under subsection (a) or (b), the Secretary is authorized to— (1) make or insure an equity loan in the form of a supplemental loan for the purpose of eq- Page 4775 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1485 2 So in original. The word ‘‘for’’ probably should appear. uity takeout to the owner of housing financed with a loan made or insured under this section pursuant to a contract entered into before De- cember 15, 1989, for the purpose of extending the affordability of the housing for low income families or persons and very low-income fami- lies or persons for not less than 20 years, ex- cept that such loan may not exceed 90 percent of the value of the equity in the project as de- termined by the Secretary; (2) transfer and reamortize an existing loan in connection with assistance provided under paragraph (1); and (3) make or insure a loan to enable a non- profit organization or public agency to make a purchase described in section 1472(c)(5) of this title. (d) Construction requirements; detached units for cooperative housing No loan shall be made or insured under sub- section (a) or (b) unless the Secretary finds that the construction involved will be undertaken in an economical manner and will not be of elabo- rate or extravagant design or materials. How- ever, specifically designed equipment required by elderly or handicapped persons or families shall not be considered elaborate or extrava- gant. A loan may be made or insured under sub- section (a) or (b) with respect to detached units, including those on scattered sites, for coopera- tive housing. (e) Definitions As used in this section— (1) the term ‘‘housing’’ means new or exist- ing housing suitable for dwelling use by occu- pants eligible under this section, and such term also means manufactured home rental parks where either the lots or both the lots and the homes are available for use by occu- pants eligible under this section; and such term also means congregate housing facilities for elderly or handicapped persons or families who require some supervision and central services but are otherwise able to care for themselves; such housing for the handicapped may be utilized in conjunction with edu- cational and training facilities; (2) the term ‘‘related facilities’’ includes cafeterias or dining halls, community rooms or buildings, appropriate recreation facilities, and other essential service facilities; (3) the term ‘‘congregate housing’’ means housing in which (A) some of the units may not have kitchen facilities, and (B) there is a central dining facility to provide wholesome and economic meals for elderly or handicapped persons or families. (4) the term ‘‘development cost’’ means the costs of constructing, purchasing, improving, altering, or repairing new or existing housing and related facilities and purchasing and im- proving the necessary land, including nec- essary and appropriate fees and charges, ini- tial operating expenses up to 2 per centum of the aforementioned costs, approved by the Secretary, impact fees, local charges for in- stallation, provision, or use of infrastructure, and local assessments for public improvements and services imposed by State and local gov- ernments. Such fees and charges may include payments of qualified consulting organiza- tions or foundations which operate on a non- profit basis and which render services or as- sistance to nonprofit corporations or con- sumer cooperatives who provide housing and related facilities for low or moderate income families. Notwithstanding the first sentence of this paragraph, the term ‘‘development cost’’ shall not include any initial operating ex- penses in the case of any nonprofit corpora- tion or consumer cooperative that is financing housing under this section and has been allo- cated a low-income housing tax credit by a housing credit agency pursuant to section 42 of title 26. (f) Administrative expenses Amounts made available pursuant to section 1483 of this title shall be available for adminis- trative expenses incurred under this section. (g) Loans for financing transfers of memberships in cooperatives Notwithstanding the provisions of subsections (a) and (b) of this section, the Secretary may make and insure loans to consumer cooperatives to enable such cooperatives to finance the trans- fers of memberships in the cooperatives upon such terms and conditions as low- and moderate- income persons can reasonably afford, except that such loans shall not be made upon terms more favorable than are authorized under sec- tion 1490a(a) of this title, and that the total loan to a cooperative under this section shall not ex- ceed the value of the property. (h) Project transfers (1) Condition After August 6, 1996, the ownership or control of a project for which a loan is made or insured under this section may be transferred only if the Secretary determines that such transfer would further the provision of housing and related fa- cilities for low-income families or persons and would be in the best interests of residents and the Federal Government. (2) Actions to expedite project approvals (A) In general The Secretary shall take actions to facili- tate timely approval of requests to transfer ownership or control, for the purpose of re- habilitation or preservation, of multifamily housing projects for which assistance is pro- vided by the Secretary of Agriculture in con- junction with any low-income housing tax credits under section 42 of title 26 or tax-ex- empt housing bonds. (B) Consultation The Secretary of Agriculture shall consult with the Commissioner of the Internal Rev- enue Service and take such actions as are appropriate in conjunction with such con- sultation to simplify the coordination of rules, regulations, forms (including applica- tions forms for project transfers), and ap- proval requirements 2 multifamily housing projects for which assistance is provided by the Secretary of Agriculture in conjunction Page 4776 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1485 with any low-income housing tax credits under section 42 of title 26 or tax-exempt housing bonds. (C) Existing requirements Any actions taken pursuant to this para- graph shall be taken in a manner that pro- vides for full compliance with any existing requirements under law or regulation that are designed to protect families receiving Federal housing assistance, including in- come targeting, rent, and fair housing provi- sions, and shall also comply with require- ments regarding environmental review and protection and wages paid to laborers. (D) Recommendations In implementing the changes required under this paragraph, the Secretary shall so- licit recommendations regarding such changes from project owners and sponsors, investors and stakeholders in housing tax credits, State and local housing finance agencies, tenant advocates, and other stake- holders in such projects. (i) Limitations on cost increases after approval for project involving newly constructed or substantially rehabilitated units; applicable factors After approving a project involving newly con- structed or substantially rehabilitated units under this section, the Secretary shall limit cost increases to those approved by the Sec- retary. The Secretary may approve those in- creases only for unforeseen factors beyond the owner’s control, design changes required by the Secretary or the local government, or changes in financing approved by the Secretary. (j) Contract preferences for providing units in newly constructed projects For the purpose of achieving the lowest cost in providing units in newly constructed projects assisted under this section, the Secretary shall give a preference in entering into contracts under this section for projects which are to be located on specific tracts of land provided by States, units of local government, or others if the Secretary determines that the tract of land is suitable for such housing, and that affording such preference will be cost effective. (k) Management fees The Secretary shall assure that management fees are not excessive when a project developed under this section is managed by the developer or an affiliate of the developer. (l) Determination of market feasibility of project For purposes of determining the market feasi- bility of any project to be assisted under this section— (1) in the case of any applicant who applies for rental assistance payments under section 1490a of this title in connection with such project, the Secretary shall consider the avail- ability of such rental assistance payments with respect to the project and shall require such applicant to demonstrate that a market exists for persons and families eligible for such rental assistance payments; and (2) in the case of any applicant whose project is expected to utilize any assistance under a program of a State, or political subdivision thereof, that is similar to such assistance pay- ments under section 1490a of this title, the Secretary shall only require such applicant to demonstrate that— (A) a market exists for persons and fami- lies eligible for such program of assistance; (B) such program of assistance will provide rental assistance for a period of not less than five years, and, at the option of the ap- plicant, either that there is a reasonable as- surance that the contract for assistance will be extended or renewed, or for the term of the loan remaining after the period of such assistance, that an adequate rental market exists for the project without such assist- ance; and (C) during the term of such rental assist- ance contracts, such State or political sub- division shall make available the amounts required for such rental assistance not less than annually. (m) Standards for housing and related facilities rehabilitated or repaired; carbon monoxide detectors (1) The Secretary shall establish standards for housing and related facilities rehabilitated or repaired with amounts received under a loan made or insured under this section. Standards established by the Secretary under this sub- section shall provide that except for substantial rehabilitation the particular items or systems repaired or rehabilitated must meet appropriate levels of quality or performance comparable to those levels prescribed by the Secretary of Hous- ing and Urban Development for rehabilitation, but shall not require that such items or systems or the remainder of the property meet the standards which are applicable to new construc- tion. The Secretary shall ensure that standards prescribed under this subsection provide decent, safe, and sanitary housing and related facilities. (2) Housing and related facilities rehabilitated or repaired with amounts received under a loan made or insured under this section shall contain installed carbon monoxide alarms or detectors that meet or exceed— (A) the standards described in chapters 9 and 11 of the 2018 publication of the International Fire Code, as published by the International Code Council; or (B) any other standards as may be adopted by the Secretary, in collaboration with the Secretary of Housing and Urban Development, including any relevant updates to the Inter- national Fire Code, through a notice published in the Federal Register. (3) QUALIFYING SMOKE ALARMS (A) IN GENERAL.—Housing and related facili- ties rehabilitated or repaired with amounts re- ceived under a loan made or insured under this section shall contain qualifying smoke alarms that are installed in accordance with applica- ble codes and standards published by the Inter- national Code Council or the National Fire Protection Association and the requirements of the National Fire Protection Association Standard 72, or any successor standard, in each level and in or near each sleeping area in such dwelling unit, including in basements but Page 4777 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1485 3 So in original. Probably should be capitalized. excepting crawl spaces and unfinished attics, and in each common area in a project con- taining such a dwelling unit. (B) DEFINITIONS.—For purposes of this para- graph, the following definitions shall apply: (i) SMOKE ALARM DEFINED.—The term ‘‘smoke alarm’’ has the meaning given the term ‘‘smoke detector’’ in section 2225(d) of title 15. (ii) QUALIFYING SMOKE ALARM DEFINED.— The term ‘‘qualifying smoke alarm’’ means a smoke alarm that— (I) in the case of a dwelling unit built be- fore December 29, 2022, and not substan- tially rehabilitated after December 29, 2022— (aa)(AA) is hardwired; or (BB) uses 10-year non rechargeable, nonreplaceable primary batteries and is sealed, is tamper resistant, and contains silencing means; and (bb) provides notification for persons with hearing loss as required by the Na- tional Fire Protection Association Standard 72, or any successor standard; or (II) in the case of a dwelling unit built or substantially rehabilitated after December 29, 2022, is hardwired. (n) Assistance to projects located on more than one site The Secretary may not deny assistance under this section or section 1490a of this title on the basis that the project involved is to be located on more than one site. (o) Rental assistance payments as affecting as- sistance to projects or occupancy by eligible persons The Secretary may not (1) deny assistance under this section on the basis that rental as- sistance payments under section 1490a of this title may be required unless the authority to provide such assistance is not available; or (2) promulgate any regulation that would have the effect of denying occupancy to eligible persons on the basis that such persons require rental as- sistance payments under section 1490a of this title. (p) Occupancy by low income persons and fami- lies other than very low-income persons and families (1) To the extent assistance is available under section 1490a(a)(2) of this title, not more than 25 per centum of the dwelling units which were available for occupancy under this section prior to November 30, 1983, and which will be leased on or after November 30, 1983, shall be available for leasing by low income persons and families other than very low-income persons and fami- lies. (2) To the extent assistance is available under section 1490a(a)(2) of this title, not more than 5 per centum of the dwelling units which become available for occupancy under this section on or after November 30, 1983, shall be available for leasing by low income persons and families other than very low-income persons and fami- lies. (3) Units in projects financed under this sec- tion which become available for occupancy after November 30, 1983, shall not be available for oc- cupancy by persons and families other than very low-income persons and families if the authority to provide assistance for such persons is avail- able. (4) In projects financed under this section, units that have been allocated a low-income housing tax credit by a housing credit agency pursuant to section 42 of title 26 shall not be available for occupancy by persons or families other than persons or families with incomes not in excess of the qualifying income applicable to such units pursuant to subparagraph (A) or (B) of section 42(g)(1) of title 26. (5) The Secretary shall coordinate the proc- essing of any application for a loan under this section for a project and the processing of any application for assistance under section 1490a(a)(2) of this title with respect to housing units in the same project in an economical and efficient manner. At the time the Secretary en- ters into a commitment to make or insure a loan under this section the Secretary shall obli- gate amounts for assistance payments under section 1490a(a)(2) of this title for the project, to the extent that such amounts are available and the Secretary determines such assistance is nec- essary for the market feasibility of the project. (q) Determination of income of person or family occupying financed housing In determining the income of a person or fam- ily occupying housing financed under this sec- tion, the Secretary shall consider the value of that person’s or family’s assets in the same manner as the Secretary of Housing and Urban Development considers such value for the pur- pose of the United States Housing Act of 1937 [42 U.S.C. 1437 et seq.]. (r) Operating reserve and equity contribution re- quirements; regulations to implement adjust- ment by negotiated rulemaking procedure (1) the 3 Secretary— (A) may require that the initial operating reserve under this section may be in the form of an irrevocable letter of credit; and (B) except as provided in paragraph (2), may require not more than a 3 percent contribution to equity, except that the Secretary shall re- quire a 5 percent contribution in the case of a project that is allocated a low-income housing tax credit pursuant to section 42 of title 26. (2) The Secretary may adjust the amount of equity contribution to ensure that assistance provided is not more than is necessary to pro- vide affordable housing after taking account of assistance from all Federal, State, and local sources. (3) Not later than 60 days after August 6, 1996, the Secretary shall issue regulations to imple- ment subsection (r)(2) in accordance with the negotiated rulemaking procedures set forth in subchapter III of chapter 5 of title 5: Provided, That if the negotiated rulemaking is not com- pleted within the designated time, the Secretary shall proceed to promulgate regulations under the rulemaking authority contained in section 557 of title 5. Page 4778 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1485 (s) Limitation of fees on loans No fee other than a late fee may be imposed by or for the Secretary or any other Federal agency on or with respect to a loan made or insured under this section. (t) Equity takeout loans (1) Authority The Secretary is authorized to guarantee an equity loan (in the form of a supplemental loan) to an owner of housing financed with a loan made or insured under subsection (b), only if the Secretary determines, after taking into account local market conditions, that there is reasonable likelihood that the housing will continue as decent, safe, and sanitary housing for the remaining life of the original loan on the project made or insured under sub- section (b) and that such an equity loan is— (A) necessary to provide a fair return on the owner’s investment in the housing; (B) the least costly alternative for the Federal Government that is consistent with carrying out the purposes of this subsection; and (C) would not impose an undue hardship on tenants or an unreasonable cost to the Fed- eral Government. The amount of loans guaranteed under this subsection shall be subject to limits provided in appropriations Acts. (2) Timing The Secretary is authorized to guarantee an equity loan under this subsection after the ex- piration of the 20-year period beginning on the date that an existing loan under subsection (b) of this section was made or insured. Not more than one equity loan under this subsection may be provided for any project. (3) Amount of the takeout The amount of an equity loan under this subsection shall not exceed the difference be- tween the outstanding principal on debt se- cured by the project and 90 percent of the ap- praised value of the project. The appraised value of the project shall be determined by 2 independent appraisers, 1 of whom shall be se- lected by the Secretary and 1 of whom shall be selected by the owner. If the 2 appraisers fail to agree on the value of the project, the Sec- retary and the owner shall jointly select a third appraiser whose appraisal shall be bind- ing on the Secretary and the owner. The amount of the equity loan shall not exceed 30 percent of the amount of the original ap- praised value of the project made or insured under subsection (b). (4) Submission of plan An owner requesting an equity loan under this subsection shall submit a plan acceptable to the Secretary to ensure that the cost of am- ortizing an equity loan under paragraph (1) does not result in the displacement of very- low-income tenants or substantially alter the income mix of the tenants in the project. (5) Regulations The Secretary shall issue final regulations within 180 days from December 15, 1989. (6) Effective date The requirements of this subsection shall apply to any loan obligated under this section on or after December 15, 1989. This subsection shall not require retroactive reserve account payments with respect to any loan that was obligated on or after December 15, 1989, and on or before June 16, 1990, but reserve account payments shall be required for such loans be- ginning on November 28, 1990. (u) Reuse of loan authority Loan authority that is obligated under this section but that is not expended due to any ac- tion that removes the original borrower, may be reallocated to a different borrower during the same fiscal year in which the loan authority was obligated. Any loan authority under this section appropriated or made available within limits es- tablished in appropriations Acts shall remain available until expended. (v) Assumption of loans The Secretary may provide for the assumption or transfer of a loan or loan obligation under this section to any person or entity qualified to receive a loan or loan obligation under this sec- tion in any case of default or foreclosure with respect to the original borrower. The Secretary shall provide in each assumption or transfer under this subsection for the assumption of the obligations, rights, and interests under the terms of the loan or loan obligation or such other terms as the Secretary determines appro- priate. (w) Set-aside of rural rental housing funds (1) Authority Except as provided in paragraph (2), the Sec- retary shall set aside from amounts made available for each State for loans under this section, not less than 9 percent of the amounts available in each fiscal year. Amounts set aside shall be available only for nonprofit en- tities in the State, which may not be wholly or partially owned or controlled by a for-profit entity. A partnership, that has as its general partner a nonprofit entity or the nonprofit en- tity’s for-profit subsidiary, is eligible to re- ceive funds set aside under this subsection to sponsor a project which is receiving low-in- come housing tax credits authorized under section 42 of title 26. For the purposes of this subsection, a nonprofit entity is an organiza- tion that— (A) will own an interest in a project to be financed under this section and will materi- ally participate in the development and the operation of the project; (B) is a private organization that has non- profit, tax exempt status under section 501(c)(3) or section 501(c)(4) of title 26; (C) has among its purposes the planning, development, or management of low-income housing or community development projects; and (D) is not affiliated with or controlled by a for-profit organization. (2) Minimum State set-aside If the amount set aside under paragraph (1) for any State is less than $750,000 in any fiscal Page 4779 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1485 year, the Secretary shall pool such amount to- gether with set-aside amounts from other States whose set-aside is less than $750,000, and shall make such amounts available for such eligible entities under paragraph (1) in any such State. The Secretary shall establish a procedure to provide that any amounts pooled under this paragraph from the alloca- tion for any State in any fiscal year that are not obligated during a reasonable period in such year shall be made available for any such eligible entities under paragraph (1) in such State. The Secretary may provide amounts available for reallocation under this sub- section in excess of $750,000 in a given State, if such amounts are necessary to finance a project under this section. (3) Unused amounts (A) Equitable distribution Any amounts set aside under this sub- section from the allocation for any State that are not obligated by 9 months after the allocation, shall first be pooled and made available to any other eligible nonprofit en- tity in any State as defined in this sub- section. The Secretary shall make reason- able efforts to ensure that pooled funds are distributed under this subparagraph in an equitable manner. (B) Return to the States After funds have been pooled and obligated for 30 days, the Secretary shall return any remaining funds to the States on a propor- tional basis for use by any other eligible en- tity as defined in this section. (x) Uniform project costs; coordination of hous- ing resources and tax benefits The Secretary shall— (1) establish standard guidelines for State of- fices that describe allowable development costs which are required for development of all projects under this section, without regard to whether the project was allocated a low-in- come housing tax credit; (2) require each State to establish a process for coordinating the selection of projects under this section with the housing needs and priorities as established in a State comprehen- sive housing affordability strategy under sec- tion 12705 of this title and a low-income hous- ing tax credit allocation plan under section 42 of title 26; and (3) develop, in consultation with housing credit agencies (as that term is defined under section 42 of title 26), uniform procedures for identifying and sharing information on project costs, builder profit, identity of interests rela- tionships, and other factors, as appropriate, with the relevant housing credit agency for projects that are allocated a low-income hous- ing tax credit pursuant to section 42(h) of title 26 for the purpose of achieving compliance with section 3545(d) of this title. (y) Service coordinators (1) Grants The Secretary may make grants under this subsection, with respect to any project that the Secretary determines has a sufficient number of frail elderly residents, for the cost of employing or otherwise retaining the serv- ices of one or more individuals to coordinate services provided to frail elderly residents of the project (in this subsection referred to as a ‘‘service coordinator’’), who shall be respon- sible for— (A) assessing the supportive service needs of frail elderly residents of the project, based on objective criteria and interviews with such residents; (B) working with service providers to de- sign the provision of services to meet the needs of frail elderly residents of the project, taking into consideration the needs and de- sires of such residents and their ability and willingness to pay for such services, as ex- pressed by the residents; (C) mobilizing public and private resources to obtain funding for such services for such residents; (D) monitoring and evaluating the impact and effectiveness of any supportive services provided for such residents; (E) consulting and coordinating with any appropriate public and private agencies re- garding the provision of supportive services; and (F) performing such other duties that the Secretary deems appropriate to enable frail elderly persons residing in federally assisted housing to live with dignity and independ- ence. (2) Qualifications Individuals employed as service coordinators pursuant to this subsection shall meet the minimum qualifications and standards estab- lished under section 8011(d)(4) of this title for service coordinators under a congregate hous- ing services program. (3) Application and selection The Secretary shall provide for the form and manner of applications for grants under this subsection and for the selection of applicants to receive the grants. (4) ‘‘Frail elderly’’ defined For purposes of this subsection, the term ‘‘frail elderly’’ has the meaning given the term in section 8011(k) of this title. (z) Accounting and recordkeeping requirements (1) Accounting standards The Secretary shall require that borrowers in programs authorized by this section main- tain accounting records in accordance with generally accepted accounting principles for all projects that receive funds from loans made or guaranteed by the Secretary under this section. (2) Record retention requirements The Secretary shall require that borrowers in programs authorized by this section retain for a period of not less than 6 years and make available to the Secretary in a manner deter- mined by the Secretary, all records required to be maintained under this subsection and other records identified by the Secretary in applicable regulations. Page 4780 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1485 (aa) Double damages for unauthorized use of housing projects assets and income (1) Action to recover assets or income (A) In general The Secretary may request the Attorney General to bring an action in a United States district court to recover any assets or income used by any person in violation of the provisions of a loan made or guaranteed by the Secretary under this section or in violation of any applicable statute or regula- tion. (B) Improper documentation For purposes of this subsection, a use of assets or income in violation of the applica- ble loan, loan guarantee, statute, or regula- tion shall include any use for which the doc- umentation in the books and accounts does not establish that the use was made for a reasonable operating expense or necessary repair of the project or for which the docu- mentation has not been maintained in ac- cordance with the requirements of the Sec- retary and in reasonable condition for prop- er audit. (C) Definition For the purposes of this subsection, the term ‘‘person’’ means— (i) any individual or entity that borrows funds in accordance with programs author- ized by this section; (ii) any individual or entity holding 25 percent or more interest of any entity that borrows funds in accordance with pro- grams authorized by this section; and (iii) any officer, director, or partner of an entity that borrows funds in accordance with programs authorized by this section. (2) Amount recoverable (A) In general In any judgment favorable to the United States entered under this subsection, the At- torney General may recover double the value of the assets and income of the project that the court determines to have been used in violation of the provisions of a loan made or guaranteed by the Secretary under this section or any applicable statute or regula- tion, plus all costs related to the action, in- cluding reasonable attorney and auditing fees. (B) Application of recovered funds Notwithstanding any other provision of law, the Secretary may use amounts recov- ered under this subsection for activities au- thorized under this section and such funds shall remain available for such use until ex- pended. (3) Time limitation Notwithstanding any other provision of law, an action under this subsection may be com- menced at any time during the 6-year period beginning on the date that the Secretary dis- covered or should have discovered the viola- tion of the provisions of this section or any re- lated statutes or regulations. (4) Continued availability of other remedies The remedy provided in this subsection is in addition to and not in substitution of any other remedies available to the Secretary or the United States. (July 15, 1949, ch. 338, title V, § 515, as added Pub. L. 87–723, § 4(b), Sept. 28, 1962, 76 Stat. 671; amended Pub. L. 88–340, June 30, 1964, 78 Stat. 233; Pub. L. 88–560, title V, § 501(d) Sept. 2, 1964, 78 Stat. 796; Pub. L. 89–117, title X, § 1005(c), Aug. 10, 1965, 79 Stat. 501; Pub. L. 89–754, title VIII, §§ 804, 805, Nov. 3, 1966, 80 Stat. 1282; Pub. L. 91–78, § 1, Sept. 30, 1969, 83 Stat. 125; Pub. L. 91–152, title IV, § 413(a), Dec. 24, 1969, 83 Stat. 398; Pub. L. 91–609, title VIII, § 803(c), Dec. 31, 1970, 84 Stat. 1807; Pub. L. 93–117, § 13(b), Oct. 2, 1973, 87 Stat. 423; Pub. L. 93–383, title V, §§ 509(b), 510, Aug. 22, 1974, 88 Stat. 695; Pub. L. 95–60, § 4(b), June 30, 1977, 91 Stat. 258; Pub. L. 95–80, § 4(b), July 31, 1977, 91 Stat. 340; Pub. L. 95–128, title V, §§ 501(b), 507(a)(3), 508, Oct. 12, 1977, 91 Stat. 1138, 1140, 1141; Pub. L. 95–406, § 7(b), Sept. 30, 1978, 92 Stat. 881; Pub. L. 95–557, title V, § 501(e), Oct. 31, 1978, 92 Stat. 2111; Pub. L. 96–71, § 5(b), Sept. 28, 1979, 93 Stat. 502; Pub. L. 96–105, § 5(b), Nov. 8, 1979, 93 Stat. 795; Pub. L. 96–153, title V, § 501(f), Dec. 21, 1979, 93 Stat. 1134; Pub. L. 96–372, § 6(b), Oct. 3, 1980, 94 Stat. 1364; Pub. L. 96–399, title V, §§ 501(b), 502, 503, 507(c), Oct. 8, 1980, 94 Stat. 1668, 1670; Pub. L. 97–35, title III, § 351(b), Aug. 13, 1981, 95 Stat. 420; Pub. L. 97–289, § 3(a), Oct. 6, 1982, 96 Stat. 1231; Pub. L. 98–35, § 3(a), May 26, 1983, 97 Stat. 198; Pub. L. 98–109, § 4(a), Oct. 1, 1983, 97 Stat. 746; Pub. L. 98–181, title I [title V, §§ 511(b), 512], Nov. 30, 1983, 97 Stat. 1244; Pub. L. 98–479, title I, § 105(e), Oct. 17, 1984, 98 Stat. 2227; Pub. L. 99–120, § 3(a), Oct. 8, 1985, 99 Stat. 503; Pub. L. 99–156, § 3(a), Nov. 15, 1985, 99 Stat. 816; Pub. L. 99–219, § 3(a), Dec. 26, 1985, 99 Stat. 1731; Pub. L. 99–267, § 3(a), Mar. 27, 1986, 100 Stat. 74; Pub. L. 99–272, title III, § 3009(a), Apr. 7, 1986, 100 Stat. 105; Pub. L. 99–289, § 1(b), May 2, 1986, 100 Stat. 412; Pub. L. 99–345, § 1, June 24, 1986, 100 Stat. 673; Pub. L. 99–430, Sept. 30, 1986, 100 Stat. 986; Pub. L. 100–122, § 1, Sept. 30, 1987, 101 Stat. 793; Pub. L. 100–154, Nov. 5, 1987, 101 Stat. 890; Pub. L. 100–170, Nov. 17, 1987, 101 Stat. 914; Pub. L. 100–179, Dec. 3, 1987, 101 Stat. 1018; Pub. L. 100–200, Dec. 21, 1987, 101 Stat. 1327; Pub. L. 100–242, title II, §§ 242, 263, title III, §§ 301(e), 306, 307, 316(c), Feb. 5, 1988, 101 Stat. 1890, 1891, 1893, 1895, 1896, 1898; Pub. L. 100–628, title X, § 1042, Nov. 7, 1988, 102 Stat. 3273; Pub. L. 101–137, § 7(a), Nov. 3, 1989, 103 Stat. 825; Pub. L. 101–235, title II, § 207, title IV, § 402, Dec. 15, 1989, 103 Stat. 2042, 2048; Pub. L. 101–625, title VII, §§ 701(e), 712, 713, Nov. 28, 1990, 104 Stat. 4282, 4291, 4292; Pub. L. 102–142, title VII, § 743(a), Oct. 28, 1991, 105 Stat. 915; Pub. L. 102–230, § 4, Dec. 12, 1991, 105 Stat. 1721; Pub. L. 102–550, title VII, §§ 701(e), 707(a)–(f)(1), 708(a), Oct. 28, 1992, 106 Stat. 3834, 3836–3839; Pub. L. 104–120, § 4(b), (c), Mar. 28, 1996, 110 Stat. 835; Pub. L. 104–180, title VII, § 734(a), (c)(1), (2), (3)(C), (d), (e)(2), Aug. 6, 1996, 110 Stat. 1601–1603; Pub. L. 105–86, title VII, § 735(b), Nov. 18, 1997, 111 Stat. 2110; Pub. L. 105–276, title V, § 599C(b), Oct. 21, 1998, 112 Stat. 2661; Pub. L. 106–569, title VII, § 704, Dec. 27, 2000, 114 Stat. 3014; Pub. L. 110–289, div. B, title VIII, § 2833, July 30, 2008, 122 Stat. 2868; Pub. L. 116–260, div. Q, title I, § 101(f)(2), Dec. 27, 2020, 134 Stat. Page 4781 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1485 2164; Pub. L. 117–328, div. AA, title VI, § 601(e)(2), Dec. 29, 2022, 136 Stat. 5547.) Editorial Notes REFERENCES IN TEXT Section 1928 of title 7, referred to in subsec. (b)(3), was amended generally by Pub. L. 104–127, title VI, § 605, Apr. 4, 1996, 110 Stat. 1086, and, as so amended, consists of subsecs. (a) and (b) which are substantially similar to provisions formerly contained in the third sentence of such section. Section 1929(f)(1) of title 7, referred to in subsec. (b)(3), was repealed and section 1929(f)(2) was redesig- nated section 1929(f)(1) by Pub. L. 104–127, title VII, § 744, Apr. 4, 1996, 110 Stat. 1125. The United States Housing Act of 1937, referred to in subsec. (q), is act Sept. 1, 1937, ch. 896, as revised gen- erally by Pub. L. 93–383, title II, § 201(a), Aug. 22, 1974, 88 Stat. 653, which is classified generally to chapter 8 (§ 1437 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 1437 of this title and Tables. CODIFICATION Section 203(a) of Pub. L. 100–242, as amended, which was formerly set out in a note under section 1715l of Title 12, Banks and Banking, and which provided that on Nov. 28, 1990, the amendment made by section 263 of Pub. L. 100–242 is repealed and section is to read as it would without such amendment, was omitted in the general amendment of subtitle A of title II of Pub. L. 100–242 by Pub. L. 101–625. AMENDMENTS 2022—Subsec. (m)(3). Pub. L. 117–328 added par. (3). 2020—Subsec. (m). Pub. L. 116–260 designated existing provisions as par. (1) and added par. (2). 2008—Subsec. (h). Pub. L. 110–289, which directed amendment of subsec. (h) by inserting ‘‘(1) Condition’’ after ‘‘(h)’’ and adding par. (2), was executed by making the insertion after ‘‘(h) Project transfers’’ and adding par. (2), to reflect the probable intent of Congress. 2000—Subsec. (z). Pub. L. 106–569 added subsec. (z) and struck out heading and text of former subsec. (z). Text read as follows: ‘‘Whoever, as an owner, agent, or man- ager, or who is otherwise in custody, control, or posses- sion of property that is security for a loan made or in- sured under this section willfully uses, or authorizes the use, of any part of the rents, assets, proceeds, in- come, or other fund derived from such property, for any purpose other than to meet actual or necessary ex- penses of the property, or for any other purpose not au- thorized by this subchapter or the regulations adopted pursuant to this subchapter, shall be fined not more than $250,000 or imprisoned not more than 5 years, or both.’’ Subsec. (aa). Pub. L. 106–569 added subsec. (aa). 1998—Subsec. (b)(4) to (7). Pub. L. 105–276, § 599C(b)(1), redesignated pars. (5) to (7) as (4) to (6), respectively, and struck out former par. (4) which read as follows: ‘‘no loan shall be insured under this subsection after September 30, 1998;’’. Subsec. (w)(1). Pub. L. 105–276, § 599C(b)(2), substituted ‘‘each fiscal year’’ for ‘‘fiscal year 1998’’ in first sen- tence. 1997—Subsec. (a)(2). Pub. L. 105–86, § 735(b)(3)(A), sub- stituted ‘‘up to 30 years’’ for ‘‘up to fifty years’’. Subsec. (b)(2). Pub. L. 105–86, § 735(b)(3)(B)(i), added par. (2) and struck out former par. (2) which read as fol- lows: ‘‘provide for complete amortization by periodic payments within such term as the Secretary may pre- scribe;’’. Subsec. (b)(4). Pub. L. 105–86, § 735(b)(1), substituted ‘‘September 30, 1998’’ for ‘‘September 30, 1997’’. Subsec. (b)(7). Pub. L. 105–86, § 735(b)(3)(B)(ii)–(iv), added par. (7). Subsec. (w)(1). Pub. L. 105–86, § 735(b)(2), substituted ‘‘fiscal year 1998’’ for ‘‘fiscal year 1997’’. 1996—Subsec. (b)(4). Pub. L. 104–180, § 734(a)(1), sub- stituted ‘‘September 30, 1997’’ for ‘‘September 30, 1996’’. Pub. L. 104–120, § 4(b), substituted ‘‘September 30, 1996’’ for ‘‘September 30, 1994’’. Subsec. (c)(1). Pub. L. 104–180, § 734(c)(3)(C), sub- stituted ‘‘December 15, 1989’’ for ‘‘December 21, 1979’’. Subsec. (h). Pub. L. 104–180, § 734(c)(1), added subsec. (h). Subsec. (r). Pub. L. 104–180, § 734(d)(1), added subsec. (r) and struck out former subsec. (r) which read as fol- lows: ‘‘The Secretary— ‘‘(1) may require that the initial operating reserve under this section may be in the form of an irrev- ocable letter of credit; and ‘‘(2) may not require more than a 3 percent con- tribution to equity, except that the Secretary shall require a 5 percent contribution in the case of a project that is allocated a low-income housing tax credit pursuant to section 42 of title 26.’’ Subsec. (t)(4). Pub. L. 104–180, § 734(c)(2), redesignated par. (6) as (4) and struck out heading and text of former par. (4). Text read as follows: ‘‘For each initial loan made or insured under subsection (b) of this section pursuant to a contract entered into after the date this subsection takes effect, the owner shall make monthly payments from project income to the Secretary for de- posit in a reserve account for the project. Such month- ly payments shall, in the first year after the loan is made or insured, equal $2 for each unit in the project, and shall increase by $2 annually until the expiration of the 20-year period beginning on the date that the loan was made or insured, except that such initial pay- ments, any accrued payments, and annual increases shall not be required for a unit occupied by a low-in- come family or individual who is paying more than 30 percent of the family’s or individual’s adjusted income in rent. The rent on a unit for which payment is made under this paragraph shall be increased by the amount of such payment.’’ Subsec. (t)(5). Pub. L. 104–180, § 734(c)(2), redesignated par. (7) as (5) and struck out former par. (5) which read as follows: ‘‘(5) RESERVE ACCOUNT.— ‘‘(A) Payments under paragraph (4) shall be depos- ited in an interest bearing account that the Sec- retary shall establish for the project. ‘‘(B) The Secretary shall make available amounts in the reserve account only for payments of principal and interest on an equity loan under this subsection. Such payments shall be in amounts necessary to en- sure that rent payments made by low-income fami- lies residing in the housing do not exceed the max- imum rent under section 1490a(a)(2)(A) of this title; ‘‘(C) Any payments to the account, and interest on such payments, not expended in the project from which such payments were made, shall be used in other projects to make payments of principal and in- terest on an equity loan under this subsection. Such payments shall be in amounts necessary to ensure that rent payments made by low-income families re- siding in the housing do not exceed the maximum rent under section 1490a(a)(2)(A) of this title. ‘‘(D) The Secretary shall make payments from ac- counts under this paragraph only to the extent pro- vided in appropriations Acts.’’ Subsec. (t)(6) to (8). Pub. L. 104–180, § 734(c)(2)(B), re- designated pars. (6) to (8) as (4) to (6), respectively. Subsec. (w)(1). Pub. L. 104–180, § 734(a)(2), substituted ‘‘fiscal year 1997’’ for ‘‘fiscal year 1996’’. Pub. L. 104–120, § 4(c), substituted ‘‘fiscal year 1996’’ for ‘‘fiscal years 1993 and 1994’’. Subsec. (z). Pub. L. 104–180, § 734(d)(2), (e)(2), added subsec. (z) and struck out heading and text of former subsec. (z). Text consisted of 3 pars. which denied Sec- retary authority to refuse to make complying loan solely because facilities were in rural or remote area or to provide preference for project based on availability of particular essential service and required Secretary to give preference to proposed projects serving rural communities 20 or more miles from an urban area. Page 4782 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1485 1992—Subsec. (b)(4). Pub. L. 102–550, § 701(e), sub- stituted ‘‘1994’’ for ‘‘1992’’. Subsec. (e)(4). Pub. L. 102–550, § 707(a), struck out ‘‘and’’ before ‘‘initial operating expenses up to’’, in- serted ‘‘, impact fees, local charges for installation, provision, or use of infrastructure, and local assess- ments for public improvements and services imposed by State and local governments’’ after ‘‘approved by the Secretary’’, and inserted at end ‘‘Notwithstanding the first sentence of this paragraph, the term ‘development cost’ shall not include any initial operating expenses in the case of any nonprofit corporation or consumer co- operative that is financing housing under this section and has been allocated a low-income housing tax credit by a housing credit agency pursuant to section 42 of title 26.’’ Subsec. (l)(1). Pub. L. 102–550, § 707(b)(1), added par. (1) and struck out former par. (1) which read as follows: ‘‘in the case of any applicant whose project is expected to utilize rental assistance payments under section 1490a of this title, the Secretary shall only require such applicant to demonstrate that a market exists for per- sons and families eligible for such rental assistance payments; and’’. Subsec. (p)(4). Pub. L. 102–550, § 707(b)(2)(1), sub- stituted period at end for ‘‘, except when the Secretary determines that the continued vacancy of units that have been unoccupied for at least 6 months threatens the financial viability of the project. The preceding sentence shall not be interpreted as authorizing the Secretary to— ‘‘(A) limit the ability of a housing credit agency to require an owner of housing, in order to receive a low-income housing tax credit, to enter into a re- strictive covenant, in such form and for such period as the housing credit agency deems appropriate, to maintain the occupancy characteristics of the project as prescribed in section 42(h)(6) of title 26; or ‘‘(B) deny or delay closing of financing under this section by reason of the existence, or occupancy terms, of any such restrictive covenant.’’ Subsec. (p)(5). Pub. L. 102–550, § 707(b)(2)(2), added par. (5). Subsec. (r)(2). Pub. L. 102–550, § 707(c), inserted before period at end ‘‘, except that the Secretary shall require a 5 percent contribution in the case of a project that is allocated a low-income housing tax credit pursuant to section 42 of title 26’’. Subsec. (w)(1). Pub. L. 102–550, § 708(a)(1)–(3), sub- stituted ‘‘not less than 9 percent of the amounts avail- able in fiscal years 1993 and 1994’’ for ‘‘not less than 7 percent of the amounts available in fiscal year 1991 and not less than 9 percent of the amounts available in fis- cal year 1992’’ in first sentence, struck out ‘‘or under whole or partial control with a for-profit entity’’ after ‘‘by a for-profit entity’’ in second sentence, and in- serted at end ‘‘A partnership, that has as its general partner a nonprofit entity or the nonprofit entity’s for- profit subsidiary, is eligible to receive funds set aside under this subsection to sponsor a project which is re- ceiving low-income housing tax credits authorized under section 42 of title 26. For the purposes of this sub- section, a nonprofit entity is an organization that—’’ and subpars. (A) to (D). Subsec. (w)(2). Pub. L. 102–550, § 708(a)(4), inserted at end ‘‘The Secretary may provide amounts available for reallocation under this subsection in excess of $750,000 in a given State, if such amounts are necessary to fi- nance a project under this section.’’ Subsec. (w)(3). Pub. L. 102–550, § 708(a)(5), added par. (3) and struck out heading and text of former par. (3). Text read as follows: ‘‘Any amounts set aside or pooled under this subsection from the allocation for any State in any fiscal year that are not obligated by a reason- able date established by the Secretary (which shall be after the expiration of the period under paragraph (2)) shall be made available to any entity eligible under this section in such State.’’ Subsec. (x). Pub. L. 102–550, § 707(d), added subsec. (x). Subsec. (y). Pub. L. 102–550, § 707(e), added subsec. (y). Subsec. (z). Pub. L. 102–550, § 707(f)(1), added subsec. (z). 1991—Subsec. (b)(4). Pub. L. 102–142 substituted ‘‘1992’’ for ‘‘1991’’. Subsec. (p)(4). Pub. L. 102–230 inserted at end ‘‘The preceding sentence shall not be interpreted as author- izing the Secretary to—’’ and subpars. (A) and (B). 1990—Subsec. (b)(4). Pub. L. 101–625, § 701(e), sub- stituted ‘‘1991’’ for ‘‘1990’’. Subsec. (t)(3). Pub. L. 101–625, § 712(a)(1), substituted ‘‘original appraised value of the project’’ for ‘‘original loan on the project’’. Subsec. (t)(4). Pub. L. 101–625, § 712(a)(2), inserted ‘‘ini- tial’’ before ‘‘loan’’ in first sentence and inserted ‘‘ini- tial payments, any accrued payments, and’’ after ‘‘ex- cept that such’’ in second sentence. Subsec. (t)(8). Pub. L. 101–625, § 712(a)(3), added par. (8) and struck out former par. (8) which read as follows: ‘‘The requirements of this subsection shall apply to any applications for assistance under this section on or after the expiration of 180 days from December 15, 1989.’’ Subsec. (u). Pub. L. 101–625, § 712(b), inserted at end ‘‘Any loan authority under this section appropriated or made available within limits established in appropria- tions Acts shall remain available until expended.’’ Subsec. (v). Pub. L. 101–625, § 712(c), added subsec. (v). Subsec. (w). Pub. L. 101–625, § 713, added subsec. (w). 1989—Subsec. (b)(4). Pub. L. 101–137 substituted ‘‘Sep- tember 30, 1990’’ for ‘‘September 30, 1989’’. Subsec. (t). Pub. L. 101–235, § 207, added subsec. (t). Subsec. (u). Pub. L. 101–235, § 402, added subsec. (u). 1988—Subsec. (b)(4). Pub. L. 100–242, § 301(e), sub- stituted ‘‘September 30, 1989’’ for ‘‘March 15, 1988’’. Subsec. (c). Pub. L. 100–242, § 242(2), added subsec. (c). Former subsec. (c) redesignated (d). Subsecs. (d) to (g). Pub. L. 100–242, § 242(1), redesig- nated subsecs. (c) to (f) as (d) to (g), respectively. Subsec. (h). Pub. L. 100–628 struck out subsec. (h) which read as follows: ‘‘The Secretary shall limit in- creases in rents on or after November 30, 1983, for newly constructed or substantially rehabilitated projects as- sisted under this section to the lesser of the actual op- erating cost increases incurred or the amount of oper- ating cost increases incurred with respect to com- parable rental dwelling units of various sizes and types in the same market area which are suitable for occu- pancy by families and persons assisted under this sec- tion. Where no comparable dwelling units exist in the same market area, the Secretary shall have authority to approve such increases in accordance with the best available data regarding operating cost increases in rental dwelling units.’’ Pub. L. 100–242, § 242(1), redesignated subsec. (g) as (h). Former subsec. (h) redesignated (i). Subsecs. (i) to (p). Pub. L. 100–242, § 242(1), redesig- nated subsecs. (h) to (o) as (i) to (p), respectively. Subsec. (p)(1). Pub. L. 100–242, § 316(c), substituted ‘‘on or after such date’’ for ‘‘on or after such effective date’’, which for purposes of codification was translated as ‘‘on or after November 30, 1983’’, thus requiring no change in text. Subsec. (p)(4). Pub. L. 100–242, § 306, added par. (4). Subsec. (q). Pub. L. 100–242, § 242(1), redesignated former subsec. (p) as (q). Subsec. (r). Pub. L. 100–242, § 263, added subsec. (r). Subsec. (s). Pub. L. 100–242, § 307, added subsec. (s). 1987—Subsec. (b)(4). Pub. L. 100–200 substituted ‘‘March 15, 1988’’ for ‘‘December 16, 1987’’. Pub. L. 100–179 substituted ‘‘December 16, 1987’’ for ‘‘December 2, 1987’’. Pub. L. 100–170 substituted ‘‘December 2, 1987’’ for ‘‘November 15, 1987’’. Pub. L. 100–154 substituted ‘‘November 15, 1987’’ for ‘‘October 31, 1987’’. Pub. L. 100–122 substituted ‘‘October 31, 1987’’ for ‘‘September 30, 1987’’. 1986—Subsec. (b)(4). Pub. L. 99–430 substituted ‘‘Sep- tember 30, 1987’’ for ‘‘September 30, 1986’’. Pub. L. 99–345 substituted ‘‘September 30, 1986’’ for ‘‘June 6, 1986’’. Page 4783 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1485 Pub. L. 99–289 substituted ‘‘June 6, 1986’’ for ‘‘April 30, 1986’’. Pub. L. 99–272 directed amendment identical to Pub. L. 99–219, substituting ‘‘March 17, 1986’’ for ‘‘December 15, 1985’’. Pub. L. 99–267 substituted ‘‘April 30, 1986’’ for ‘‘March 17, 1986’’. 1985—Subsec. (b)(4). Pub. L. 99–219 substituted ‘‘March 17, 1986’’ for ‘‘December 15, 1985’’. Pub. L. 99–156 substituted ‘‘December 15, 1985’’ for ‘‘November 14, 1985’’. Pub. L. 99–120 substituted ‘‘November 14, 1985’’ for ‘‘September 30, 1985’’. 1984—Subsec. (k)(2)(B). Pub. L. 98–479 inserted ‘‘, at the option of the applicant, either that there is a rea- sonable assurance that the contract for assistance will be extended or renewed, or’’. 1983—Subsec. (a)(2) to (4). Pub. L. 98–181, § 512(c)(1), (2), struck out par. (2) which related to rates of interest on loans, and redesignated pars. (3) and (4) as (2) and (3), respectively. Subsec. (b)(2) to (4). Pub. L. 98–181, § 512(c)(3), (4), struck out par. (2) which related to rates of interest on loans and redesignated pars. (3) to (5) as (2) to (4), re- spectively. Subsec. (b)(5). Pub. L. 98–181, § 512(c)(4), redesignated par. (6) as (5). Former par. (5) redesignated (4). Pub. L. 98–181, § 511(b), substituted ‘‘September 30, 1985’’ for ‘‘November 30, 1983’’. Pub. L. 98–109 substituted ‘‘November 30, 1983’’ for ‘‘September 30, 1983’’. Pub. L. 98–35 substituted ‘‘September 30, 1983’’ for ‘‘May 20, 1983’’. Subsec. (b)(6), (7). Pub. L. 98–181, § 512(c)(4), redesig- nated par. (7) as (6). Former par. (6) redesignated (5). Pub. L. 98–181, § 512(b), added par. (7). Subsec. (c). Pub. L. 98–181, § 512(d), inserted provisions relating to detached units, on scattered sites, for coop- erative housing. Subsec. (d)(1). Pub. L. 98–181, § 512(e), inserted provi- sions relating to applicability to manufactured home rental parks. Subsecs. (g) to (p). Pub. L. 98–181, § 512(a), added sub- secs. (g) to (p). 1982—Subsec. (b)(5). Pub. L. 97–289 substituted ‘‘May 20, 1983’’ for ‘‘September 30, 1982’’. 1981—Subsec. (b)(5). Pub. L. 97–35 substituted ‘‘1982’’ for ‘‘1981’’. 1980—Subsec. (a). Pub. L. 96–399, §§ 503(a), 507(c)(1), in- serted reference to Indian tribes in provisions pre- ceding par. (1), and added par. (4). Subsec. (b). Pub. L. 96–399, §§ 501(b), 503(b), 507(c)(2), inserted reference to Indian tribe in provisions pre- ceding par. (1), in par. (5) substituted ‘‘September 30, 1981’’ for ‘‘October 15, 1980’’, and added par. (6). Pub. L. 96–372 substituted ‘‘October 15, 1980’’ for ‘‘Sep- tember 30, 1980’’ in par. (5). Subsec. (f). Pub. L. 96–399, § 502, added subsec. (f). 1979—Subsec. (b)(5). Pub. L. 96–153 substituted ‘‘Sep- tember 30, 1980’’ for ‘‘November 30, 1979’’. Pub. L. 96–105 substituted ‘‘November 30, 1979’’ for ‘‘October 31, 1979’’. Pub. L. 96–71 substituted ‘‘October 31, 1979’’ for ‘‘Sep- tember 30, 1979’’. 1978—Subsec. (b)(5). Pub. L. 95–557 substituted ‘‘Sep- tember 30, 1979’’ for ‘‘October 31, 1978’’. Pub. L. 95–406 substituted ‘‘October 31, 1978’’ for ‘‘Sep- tember 30, 1978’’. 1977—Subsec. (a). Pub. L. 95–128, § 507(a)(3), authorized loans for housing of handicapped persons or families. Subsec. (b). Pub. L. 95–128, §§ 501(b), 507(a)(3), sub- stituted ‘‘elderly or handicapped persons or families’’ for ‘‘elderly persons and elderly families’’ in provision preceding par. (1) and ‘‘September 30, 1978’’ for ‘‘Sep- tember 30, 1977’’ in par. (5). Pub. L. 95–80 substituted ‘‘September 30, 1977’’ for ‘‘July 31, 1977’’ in par. (5). Pub. L. 95–60 substituted ‘‘July 31, 1977’’ for ‘‘June 30, 1977’’ in par. (5). Subsec. (c). Pub. L. 95–128, § 508(a), provided that spe- cifically designed equipment required by elderly or handicapped persons or families shall not be considered elaborate or extravagant. Subsec. (d)(1). Pub. L. 95–128, § 508(b), defined ‘‘hous- ing’’ to also mean congregate housing facilities for el- derly or handicapped persons or families who require some supervision and central services but are otherwise able to care for themselves and authorized such hous- ing for the handicapped to be utilized in conjunction with educational and training facilities. Subsec. (d)(3). Pub. L. 95–128, § 508(c), substituted defi- nition of ‘‘congregate housing’’ for prior definition of ‘‘elderly persons’’ as persons 62 years of age or over and ‘‘elderly families’’ as families the head of which (or his spouse) is 62 years of age or over. 1974—Subsec. (b)(1). Pub. L. 93–383, § 510(a), struck out ‘‘$750,000 or’’ after ‘‘exceed’’ and substituted ‘‘less’’ for ‘‘least’’. Subsec. (b)(5). Pub. L. 93–383, § 509(b), substituted ‘‘June 30, 1977’’ for ‘‘October 1, 1974’’. Subsec. (d)(4). Pub. L. 93–383, § 510(b), inserted provi- sions including initial operating expenses up to 2 per centum of enumerated costs and requiring payments to be made to consultants rendering services to nonprofit corporations or consumer cooperatives providing hous- ing and related facilities to low or moderate income families. 1973—Subsec. (b)(5). Pub. L. 93–117 substituted ‘‘Octo- ber 1, 1974’’ for ‘‘October 1, 1973’’. 1970—Subsec. (b)(1). Pub. L. 91–609 substituted ‘‘$750,000’’ for ‘‘$300,000’’. 1969—Subsec. (b)(5). Pub. L. 91–152 substituted ‘‘Octo- ber 1, 1973’’ for ‘‘January 1, 1970’’. Pub. L. 91–78 substituted ‘‘January 1, 1970’’ for ‘‘Octo- ber 1, 1969’’. 1966—Subsec. (a). Pub. L. 89–754, §§ 804(a), 805(a), in- serted ‘‘or other persons and families of low income’’ after ‘‘income’’ and substituted ‘‘rental or cooperative housing’’ for ‘‘rental housing’’, respectively. Subsec. (b). Pub. L. 89–754, § 805(a), (b), substituted ‘‘rental or cooperative housing’’ for ‘‘rental housing’’ and inserted ‘‘or other persons and families of moderate income’’ after ‘‘families’’, respectively. Subsec. (d)(1). Pub. L. 89–754, § 804(b), substituted in the definition of ‘‘housing’’ the words ‘‘occupants eligi- ble under this section,’’ for ‘‘elderly persons or elderly families’’. Subsec. (d)(4). Pub. L. 89–754, § 805(c), defined fees and charges as used for purposes of ‘‘development cost’’ to include payments to qualified consulting organizations or foundations which operate on a nonprofit basis and which render services or assistance to nonprofit cor- porations or consumer cooperatives who provide hous- ing and related facilities. 1965—Subsec. (b)(5). Pub. L. 89–117 substituted ‘‘Octo- ber 1, 1969’’ for ‘‘September 30, 1965’’. 1964—Subsec. (b). Pub. L. 88–560 substituted ‘‘$300,000’’ for ‘‘$100,000’’ in cl. (1), and ‘‘1965’’ for ‘‘1964’’ in cl. (5). Pub. L. 88–340 substituted ‘‘September 30, 1964’’ for ‘‘June 30, 1964’’ in cl. (5). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2022 AMENDMENT Amendment by Pub. L. 117–328 effective 2 years after Dec. 29, 2022, see section 601(h) of div. AA of Pub. L. 117–328, set out as a note under section 1701q of Title 12, Banks and Banking. EFFECTIVE DATE OF 1996 AMENDMENT Amendment by Pub. L. 104–120 to be construed to have become effective Oct. 1, 1995, see section 13(a) of Pub. L. 104–120, set out as an Effective and Termination Dates of 1996 Amendments note under section 1437d of this title. EFFECTIVE DATE OF 1992 AMENDMENT Section 708(b) of Pub. L. 102–550 provided that: ‘‘The amendment made by subsection (a)(5) [amending this section] shall take effect on October 1, 1993, and shall Page 4784 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1486 apply to fiscal year 1994 and each fiscal year there- after.’’ EFFECTIVE DATE OF 1981 AMENDMENT Amendment by Pub. L. 97–35 effective Oct. 1, 1981, see section 371 of Pub. L. 97–35, set out as an Effective Date note under section 3701 of Title 12, Banks and Banking. REGULATIONS Section 707(f)(2) of Pub. L. 102–550 provided that: ‘‘The Secretary of Agriculture shall issue any regulations necessary to carry out the amendment made by para- graph (1) [amending this section] not later than the ex- piration of the 45-day period beginning on the date of the enactment of this Act [Oct. 28, 1992]. Not later than the expiration of the 30-day period beginning on the date of the enactment of this Act, the Secretary shall submit a copy of any regulations to be issued under this subsection to the Congress. The requirements of section 534(d) of the Housing Act of 1949 [42 U.S.C. 1490n(d)] and subsections (b) and (c) of section 553 of title 5, United States Code, shall apply to any such reg- ulations.’’ CONSTRUCTION OF 2022 AMENDMENT Nothing in amendment made by Pub. L. 117–328 to be construed to preempt or limit applicability of certain State or local laws relating to smoke alarms, see sec- tion 601(i) of div. AA of Pub. L. 117–328, set out as a note under section 1701q of Title 12, Banks and Banking. CONSTRUCTION OF 2020 AMENDMENT Nothing in amendment made by Pub. L. 116–260 to be construed to preempt or limit applicability of certain State or local laws relating to carbon monoxide de- vices, see section 101(j) of div. Q of Pub. L. 116–260, set out as a note under section 1437a of this title. § 1486. Financial assistance to provide low-rent housing for domestic farm labor (a) Application; considerations Upon the application of any State or political subdivision thereof, or any Indian tribe, or any broad-based public or private nonprofit organi- zation incorporated within the State, or any nonprofit organization of farmworkers incor- porated within the State, the Secretary is au- thorized to provide financial assistance for the provision of low-rent housing and related facili- ties (which may be located any place within the State) for domestic farm labor, if he finds that— (1) the housing and related facilities for which financial assistance is requested will fulfill a pressing need in the area in which such housing and facilities will be located, and there is reasonable doubt that the same can be provided without financial assistance under this section; (2) the applicant will contribute, from its own resources or from funds borrowed under section 1484 of this title or elsewhere, at least 10 per centum of the total development cost; (3) the types of housing and related facilities to be provided are most practicable, giving due consideration to the purposes to be served thereby and the needs of the occupants there- of, and such housing and facilities shall be du- rable and suitable for year-around occupancy or use, unless the Secretary finds that there is no need for such year-around occupancy or use in that area; and (4) the construction will be undertaken in an economical manner, and the housing and re- lated facilities will not be of elaborate or ex- travagant design or material. (b) Maximum amount of assistance The amount of any financial assistance pro- vided under this section for low-rent housing and related facilities shall not exceed 90 per cen- tum of the total development cost thereof, as determined by the Secretary, less such amount as the Secretary determines can be practicably obtained from other sources (including a loan under section 1484 of this title). (c) Prerequisite agreements; rentals; safety and sanitation standards; priority of domestic farm labor No financial assistance for low-rent housing and related facilities shall be made available under this section unless, to any extent and for any periods required by the Secretary, the appli- cant agrees— (1) that the rentals charged domestic farm labor shall not exceed such amounts as may be approved by the Secretary, giving due consid- eration to the income and earning capacity of the tenants, and the necessary costs of oper- ating and maintaining such housing; (2) that such housing shall be maintained at all times in a safe and sanitary condition in accordance with such standards as may be pre- scribed by State or local law, or, in the ab- sence of such standards, in accordance with such minimum requirements as the Secretary shall prescribe; (3) an absolute priority will be given at all times in granting occupancy of such housing and facilities to domestic farm labor; and (4) that such housing shall contain quali- fying smoke alarms that are installed in ac- cordance with applicable codes and standards published by the International Code Council or the National Fire Protection Association and the requirements of the National Fire Protec- tion Association Standard 72, or any successor standard, in each level and in or near each sleeping area in such dwelling unit, including in basements but excepting crawl spaces and unfinished attics, and in each common area in a project containing such a dwelling unit. (d) Payments; contracts to specify uses of hous- ing The Secretary may make payments pursuant to any contract for financial assistance under this section at such times and in such manner, as may be specified in the contract. In each con- tract, the Secretary shall include such cov- enants, conditions, or provisions as he deems necessary to insure that the housing and related facilities, for which financial assistance is made available, be used only in conformity with the provisions of this section. (e) Regulations for prevention of waste The Secretary shall prescribe regulations to insure that Federal funds expended under this section are not wasted or dissipated. The Sec- retary shall not give priority for funding under this section to any one of the groups listed in subsection (a) over any of the others so listed. (f) Wages; labor standards; waiver; authority and functions of Secretary All laborers and mechanics employed by con- tractors or subcontractors on projects assisted