42 U.S.C. § 1437c — Contributions for low-income housing

Page 4547 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437c tions and shall be subject to such terms and con- ditions as may be prescribed by the Secretary with the approval of the Secretary of the Treas- ury. The notes or other obligations issued under this subsection shall have such maturities and bear such rate or rates of interest as shall be de- termined by the Secretary of the Treasury. The Secretary of the Treasury is authorized and di- rected to purchase any notes or other obliga- tions of the Secretary issued hereunder and for such purpose is authorized to use as a public debt transaction the proceeds from the sale of any securities issued under chapter 31 of title 31, and the purposes for which securities may be issued under such chapter are extended to in- clude any purchases of such obligations. The Secretary of the Treasury may at any time sell any of the notes or other obligations acquired by him under this section. All redemptions, pur- chases, and sales by the Secretary of the Treas- ury of such notes or other obligations shall be treated as public debt transactions of the United States. (c) Public and Indian housing financing reforms (1) At such times as the Secretary may deter- mine, and in accordance with such accounting and other procedures as the Secretary may pre- scribe, each loan made by the Secretary under subsection (a) that has any principal amount outstanding or any interest amount outstanding or accrued shall be forgiven; and the terms and conditions of any contract, or any amendment to a contract, for such loan with respect to any promise to repay such principal and interest shall be canceled. Such cancellation shall not affect any other terms and conditions of such contract, which shall remain in effect as if the cancellation had not occurred. This paragraph shall not apply to any loan the repayment of which was not to be made using annual con- tributions, or to any loan all or part of the pro- ceeds of which are due a public housing agency from contractors or others. (2)(A) On April 7, 1986, each note or other obli- gation issued by the Secretary to the Secretary of the Treasury pursuant to subsection (b), to- gether with any promise to repay the principal and unpaid interest that has accrued on each note or obligation, shall be forgiven; and any other term or condition specified by each such obligation shall be canceled. (B) On September 30, 1986, and on any subse- quent September 30, each such note or other ob- ligation issued by the Secretary to the Sec- retary of the Treasury pursuant to subsection (b) during the fiscal year ending on such date, together with any promise to repay the prin- cipal and unpaid interest that has accrued on each note or obligation, shall be forgiven; and any other term or condition specified by each such obligation shall be canceled. (3) Any amount of budget authority (and con- tract authority) that becomes available during any fiscal year as a result of the forgiveness of any loan, note, or obligation under this sub- section shall be rescinded. (Sept. 1, 1937, ch. 896, title I, § 4, as added Pub. L. 93–383, title II, § 201(a), Aug. 22, 1974, 88 Stat. 656; amended Pub. L. 97–35, title III, § 322(c), Aug. 13, 1981, 95 Stat. 402; Pub. L. 98–479, title II, § 203(b)(1), Oct. 17, 1984, 98 Stat. 2229; Pub. L. 99–272, title III, § 3004, Apr. 7, 1986, 100 Stat. 102; renumbered title I, Pub. L. 100–358, § 5, June 29, 1988, 102 Stat. 681; Pub. L. 101–625, title V, § 572(2), Nov. 28, 1990, 104 Stat. 4236.) Editorial Notes PRIOR PROVISIONS A prior section 4 of act Sept. 1, 1937, ch. 896, 50 Stat. 889, as amended, provided for assistance of officers, etc., of other agencies and transfer of property to the Au- thority and was classified to section 1404 of this title, prior to the general revision of this chapter by Pub. L. 93–383. AMENDMENTS 1990—Subsec. (a). Pub. L. 101–625 substituted ‘‘low-in- come housing’’ for ‘‘lower income housing’’ wherever appearing. 1986—Subsec. (c). Pub. L. 99–272 added subsec. (c). 1984—Subsec. (b). Pub. L. 98–479 substituted ‘‘chapter 31 of title 31’’ for ‘‘the Second Liberty Bond Act, as amended’’ and ‘‘such chapter’’ for ‘‘such Act’’. 1981—Subsec. (a). Pub. L. 97–35 substituted reference to lower income for reference to low-income in two places. Statutory Notes and Related Subsidiaries 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. CARRYOVER OF AMOUNTS OF BUDGET AUTHORITY; AVAILABILITY AS APPROPRIATION OF FUNDS FOR GRANTS Pub. L. 99–500, § 101(g) [H.R. 5313, title I], Oct. 18, 1986, 100 Stat. 1783–242, and Pub. L. 99–591, § 101(g) [H.R. 5313, title I], Oct. 30, 1986, 100 Stat. 3341–242; Pub. L. 100–202, § 106, Dec. 22, 1987, 101 Stat. 1329–433, provided in part: ‘‘That the budget authority obligated under contracts for annual contributions shall be increased above amounts heretofore provided in appropriations Acts by $7,805,668,000: Provided further, That any part of the amount of the increase in budget authority provided for in the immediately foregoing proviso that is avail- able under this Act for public housing development and acquisition costs or which is to be used for amendments for such costs, shall be available as an appropriation of funds, to remain available until expended, for grants, which are hereby authorized in lieu of loans under sec- tion 4(a) of the United States Housing Act of 1937 (42 U.S.C. 1437b), and which the Secretary may make on substantially the same terms (except for repayment un- less repayment is a properly imposed sanction) as those heretofore set forth in annual contributions contracts for loans and annual contributions: Provided further, That during 1987 and thereafter, any amounts of budget authority which are carried over from a prior year, or which are otherwise available for obligation, and which are available for public housing development and acqui- sition costs, together with any amounts of budget au- thority which are to be used for amendments for such costs, in accordance with any Act, shall also be made available as an appropriation of funds for grants, under the same terms as those applying under the imme- diately preceding proviso’’. § 1437c. Contributions for low-income housing projects (a) Contract authorization; amounts; use as secu- rity for obligations of public housing agency; use of existing structures (1) The Secretary may make annual contribu- tions to public housing agencies to assist in Page 4548 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437c achieving and maintaining the lower income character of their projects. The Secretary shall embody the provisions for such annual contribu- tions in a contract guaranteeing their payment. The contribution payable annually under this section shall in no case exceed a sum equal to the annual amount of principal and interest payable on obligations issued by the public housing agency to finance the development or acquisition cost of the lower income project in- volved. Annual contributions payable under this section shall be pledged, if the Secretary so re- quires, as security for obligations issued by a public housing agency to assist the development or acquisition of the project to which annual contributions relate and shall be paid over a pe- riod not to exceed 40 years. (2) The Secretary may make contributions (in the form of grants) to public housing agencies to cover the development cost of public housing projects. The contract under which such con- tributions shall be made shall specify the amount of capital contributions required for each project to which the contract pertains, and that the terms and conditions of such contract shall remain in effect for a 40-year period. (3) The amount of contributions that would be established for a newly constructed project by a public housing agency designed to accommodate a number of families of a given size and kind may be established under this section for a project by such public housing agency that would provide housing for the comparable num- ber, sizes, and kinds of families through the ac- quisition and rehabilitation, or use under lease, of structures that are suitable for low-income housing use and obtained in the local market. (b) Maximum amount of contributions; regula- tions; criteria for rates of contribution The Secretary may prescribe regulations fix- ing the maximum contributions available under different circumstances, giving consideration to cost, location, size, rent-paying ability of pro- spective tenants, or other factors bearing upon the amounts and periods of assistance needed to achieve and maintain low rentals. Such regula- tions may provide for rates of contribution based upon development, acquisition, or oper- ation costs, number of dwelling units, number of persons housed, interest charges, or other appro- priate factors. (c) Limitation on aggregate contractual contribu- tions; contracts for preliminary loans; pay- ments of annual contributions; limitations on specific authorities (1) The Secretary may enter into contracts for annual contributions aggregating not more than $7,875,049,000 per annum, which amount shall be increased by $1,494,400,000 on October 1, 1980, and by $906,985,000 on October 1, 1981. The additional authority to enter into such contracts provided on or after October 1, 1980, shall be effective only in such amounts as may be approved in ap- propriation Acts. In addition, the aggregate amount which may be obligated over the dura- tion of the contracts may not exceed $31,200,000,000 with respect to the additional au- thority provided on October 1, 1980, and $18,087,370,000 with respect to the additional au- thority provided on October 1, 1981. (2) The Secretary shall enter into only such new contracts for preliminary loans as are con- sistent with the number of dwelling units for which contracts for annual contributions may be entered into. (3) The full faith and credit of the United States is solemnly pledged to the payment of all annual contributions contracted for pursuant to this section, and there are hereby authorized to be appropriated in each fiscal year, out of any money in the Treasury not otherwise appro- priated, the amounts necessary to provide for such payments. (4) All payments of annual contributions pur- suant to this section shall be made out of any funds available for purposes of this chapter when such payments are due, except that funds obtained through the issuance of obligations pursuant to section 1437b(b) of this title (includ- ing repayments or other realizations of the prin- cipal of loans made out of such funds) shall not be available for the payment of such annual con- tributions. (5) During such period as the Secretary may prescribe for starting construction, the Sec- retary may approve the conversion of public housing development authority for use under section 1437g of this title or for use for the ac- quisition and rehabilitation of property to be used in public housing, if the public housing agency, after consultation with the unit of local government, certifies that such assistance would be more effectively used for such purpose, and if the total number of units assisted will not be less than 90 per centum of the units covered by the original reservation. (6) The aggregate amount of budget authority which may be obligated for contracts for annual contributions and for grants under section 1437o of this title is increased by $9,912,928,000 on Octo- ber 1, 1983, and by such sums as may be approved in appropriation Acts on October 1, 1984. The ag- gregate amount of budget authority that may be obligated for contracts for annual contributions for assistance under section 1437f of this title, for contracts referred to in paragraphs (7)(A)(iv) and (7)(B)(iv), for grants for public housing, for comprehensive improvement assistance, and for amendments to existing contracts, is increased (to the extent approved in appropriation Acts) by $7,167,000,000 on October 1, 1987, and by $7,300,945,000 on October 1, 1988. The aggregate amount of budget authority that may be obli- gated for assistance referred to in paragraph (7) is increased (to the extent approved in appro- priation Acts) by $16,194,000,000 on October 1, 1990, and by $14,709,400,000 on October 1, 1991. The aggregate amount of budget authority that may be obligated for assistance referred to in para- graph (7) is increased (to the extent approved in appropriation Acts) by $14,710,990,520 on October 1, 1992, and by $15,328,852,122 on October 1993. (7)(A) Using the additional budget authority provided under paragraph (6) and the balances of budget authority that become available during fiscal year 1993, the Secretary shall, to the ex- tent approved in appropriation Acts, reserve au- thority to enter into obligations aggregating— (i) for public housing grants under sub- section (a)(2), not more than $830,900,800, of which amount not more than $257,320,000 shall be available for Indian housing; Page 4549 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437c (ii) for assistance under section 1437f of this title, not more than $1,977,662,720, of which $20,000,000 shall be available for 15-year con- tracts for project-based assistance to be used for a multicultural tenant empowerment and homeownership project located in the District of Columbia, except that assistance provided for such project shall not be considered for purposes of the percentage limitations under section 1437f(i)(2) of this title; except that not more than 49 percent of any amounts appro- priated under this clause may be used for vouchers under section 1437f(o) of this title; (iii) for comprehensive improvement assist- ance grants under section 1437l(k) of this title, not more than $3,100,000,000; (iv) for assistance under section 1437f of this title for property disposition, not more than $93,032,000; (v) for assistance under section 1437f of this title for loan management, not more than $202,000,000; (vi) for extensions of contracts expiring under section 1437f of this title, not more than $6,746,135,000, which shall be for 5-year con- tracts for assistance under section 1437f of this title and for loan management assistance under such section; (vii) for amendments to contracts under sec- tion 1437f of this title, not more than $1,350,000,000; (viii) for public housing lease adjustments and amendments, not more than $83,055,000; (ix) for conversions from leased housing con- tracts under section 1421b of this title (as in effect immediately before August 22, 1974) to assistance under section 1437f of this title, not more than $12,767,000; and (x) for grants under section 1437v of this title for revitalization of severely distressed public housing, not more than $300,000,000. (B) Using the additional budget authority pro- vided under paragraph (6) and the balances of budget authority that become available during fiscal year 1994, the Secretary shall, to the ex- tent approved in appropriation Acts, reserve au- thority to enter into obligations aggregating— (i) for public housing grants under sub- section (a)(2), not more than $865,798,634, of which amount not more than $268,127,440 shall be available for Indian housing; (ii) for assistance under section 1437f of this title, not more than $2,060,724,554, of which $20,000,000 shall be available for 15-year con- tracts for project-based assistance to be used for a multicultural tenant empowerment and homeownership project located in the District of Columbia, except that assistance provided for such project shall not be considered for purposes of the percentage limitations under section 1437f(i)(2) of this title; except that not more than 49 percent of any amounts appro- priated under this clause may be used for vouchers under section 1437f(o) of this title; (iii) for comprehensive improvement assist- ance grants under section 1437l(k) of this title, not more than $3,230,200,000; (iv) for assistance under section 1437f of this title for property disposition, not more than $96,939,344; (v) for assistance under section 1437f of this title for loan management, not more than $210,484,000; (vi) for extensions of contracts expiring under section 1437f of this title, not more than $7,029,472,670, which shall be for 5-year con- tracts for assistance under section 1437f of this title and for loan management assistance under such section; (vii) for amendments to contracts under sec- tion 1437f of this title, not more than $1,406,700,000; (viii) for public housing lease adjustments and amendments, not more than $86,543,310; (ix) for conversions from leased housing con- tracts under section 1421b of this title (as in effect immediately before August 22, 1974) to assistance under section 1437f of this title, not more than $13,303,214; and (x) for grants under section 1437v of this title for revitalization of severely distressed public housing, not more than $312,600,000. (C)(i) Any amount available for the conversion of a project to assistance under section 1437f(b)(1) of this title, if not required for such purpose, shall be used for assistance under sec- tion 1437f(b)(1) of this title. (ii) Any amount available for assistance under section 1437f of this title for property disposi- tion, if not required for such purpose, shall be used for assistance under section 1437f(b)(1) of this title. (8) Any amount available for Indian housing under subsection (a) that is recaptured shall be used only for such housing. (d) Scope of contracts for loans or annual con- tributions Any contract for loans or annual contribu- tions, or both, entered into by the Secretary with a public housing agency, may cover one or more than one low-income housing project owned by such public housing agency; in the event the contract covers two or more projects, such projects may, for any of the purposes of this chapter and of such contract (including, but not limited to, the determination of the amount of the loan, annual contributions, or payments in lieu of taxes, specified in such contract), be treated collectively as one project. (e) Local determination of need as prerequisite for contracts for preliminary loans, and con- tracts for loans or annual contributions; no- tice In recognition that there should be local de- termination of the need for low-income housing to meet needs not being adequately met by pri- vate enterprise— (1) the Secretary shall not make any con- tract with a public housing agency for prelimi- nary loans (all of which shall be repaid out of any moneys which become available to such agency for the development of the projects in- volved) for surveys and planning in respect to any low-income housing projects (i) unless the governing body of the locality involved has by resolution approved the application of the public housing agency for such preliminary loan; and (ii) unless the public housing agency has demonstrated to the satisfaction of the Page 4550 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437c 1 So in original. Secretary that there is need for such low-in- come housing which is not being met by pri- vate enterprise; and (2) the Secretary shall not make any con- tract for loans (other than preliminary loans) or for contributions pursuant to this chapter unless the governing body of the locality in- volved has entered into an agreement with the public housing agency providing for the local cooperation required by the Secretary pursu- ant to this chapter; the Secretary shall re- quire that each such agreement shall provide that, notwithstanding any order, judgment, or decree of any court (including any settlement order), before making any amounts that are provided pursuant to any contract for con- tributions under this subchapter available for use for the development of any housing or other property not previously used as public housing, the public housing agency shall (A) notify the chief executive officer (or other ap- propriate official) of the unit of general local government in which the public housing for which such amounts are to be so used is lo- cated (or to be located) of such use, and (B) pursuant to the request of such unit of general local government, provide such information as may reasonably be requested by such unit of general local government regarding the public housing to be so assisted (except to the extent otherwise prohibited by law). (f) Modification by Secretary of terms of con- tracts, etc.; limitations; amendment or super- sedure of contracts for annual contributions or loans Subject to the specific limitations or stand- ards in this chapter governing the terms of sales, rentals, leases, loans, contracts for annual contributions, or other agreements, the Sec- retary may, whenever he deems it necessary or desirable in the fulfillment of the purposes of this chapter, consent to the modification, with respect to rate of interest, time of payment of any installment of principal or interest, secu- rity, amount of annual contribution, or any other term, of any contract or agreement of any kind to which the Secretary is a party. When the Secretary finds that it would promote econ- omy or be in the financial interest of the Fed- eral Government or is necessary to assure or maintain the lower income character of the project or projects involved, any contract here- tofore or hereafter made for annual contribu- tions, loans, or both, may be amended or super- seded by a contract entered into by mutual agreement between the public housing agency and the Secretary. Contracts may not be amend- ed or superseded in a manner which would im- pair the rights of the holders of any outstanding obligations of the public housing agency in- volved for which annual contributions have been pledged. Any rule of law contrary to this provi- sion shall be deemed inapplicable. (g) Pledge of annual contributions as guarantee of payment of obligations issued by public housing agency; exception In addition to the authority of the Secretary under subsection (a) to pledge annual contribu- tions as security for obligations issued by a pub- lic housing agency, the Secretary is authorized to pledge annual contributions as a guarantee of payment by a public housing agency of all prin- cipal and interest on obligations issued by it to assist the development or acquisition of the project to which the annual contributions re- late, except that no obligation shall be guaran- teed under this subsection if the income thereon is exempt from Federal taxation. (h) Audits (1) By Secretary and Comptroller General Each contract for contributions for any as- sistance under this chapter to a public housing agency shall provide that the Secretary, the Inspector General of the Department of Hous- ing and Urban Development, and the Comp- troller General of the United States, or any of their duly authorized representatives, shall, for the purpose of audit and examination, have access to any books, documents, papers, and records of the public housing agency that are pertinent to this chapter and to its operations with respect to financial assistance under the this 1 chapter. (2) Withholding of amounts for audits under Single Audit Act The Secretary may, in the sole discretion of the Secretary, arrange for and pay the costs of an audit required under chapter 75 of title 31. In such circumstances, the Secretary may withhold, from assistance otherwise payable to the agency under this chapter, amounts suf- ficient to pay for the reasonable costs of con- ducting an acceptable audit, including, when appropriate, the reasonable costs of account- ing services necessary to place the agency’s books and records in auditable condition. As agreed to by the Secretary and the Inspector General, the Inspector General may arrange for an audit under this paragraph. (i) Prohibition on use of funds None of the funds made available to the De- partment of Housing and Urban Development to carry out this chapter, which are obligated to State or local governments, public housing agencies, housing finance agencies, or other pub- lic or quasi-public housing agencies, shall be used to indemnify contractors or subcontractors of the government or agency against costs asso- ciated with judgments of infringement of intel- lectual property rights. (Sept. 1, 1937, ch. 896, title I, § 5, as added Pub. L. 93–383, title II, § 201(a), Aug. 22, 1974, 88 Stat. 656; amended Pub. L. 94–375, § 2(a), (b), Aug. 3, 1976, 90 Stat. 1067; Pub. L. 95–24, title I, § 101(a), Apr. 30, 1977, 91 Stat. 55; Pub. L. 95–128, title II, § 201(a), (b), Oct. 12, 1977, 91 Stat. 1128; Pub. L. 95–557, title II, § 206(a), (b), Oct. 31, 1978, 92 Stat. 2091; Pub. L. 95–619, title II, § 251(a), Nov. 9, 1978, 92 Stat. 3235; Pub. L. 96–153, title II, § 201(a), (b), Dec. 21, 1979, 93 Stat. 1105; Pub. L. 96–399, title II, §§ 201(a), 210, Oct. 8, 1980, 94 Stat. 1624, 1636; Pub. L. 97–35, title III, §§ 321(a)–(c), 322(c), Aug. 13, 1981, 95 Stat. 398, 402; Pub. L. 98–181, title I [title II, § 201(b)], Nov. 30, 1983, 97 Stat. 1176; Pub. L. 100–242, title I, §§ 101, 112(a), (b)(1), 113–115, Feb. 5, 1988, 101 Stat. 1820, 1823–1825; renumbered title I Page 4551 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437c and amended Pub. L. 100–358, §§ 3, 5, June 29, 1988, 102 Stat. 680, 681; Pub. L. 101–625, title IV, § 417(a), title V, §§ 571, 572(2), Nov. 28, 1990, 104 Stat. 4161, 4235, 4236; Pub. L. 102–550, title I, §§ 101, 111(a), title VI, § 624, Oct. 28, 1992, 106 Stat. 3681, 3687, 3819; Pub. L. 104–19, title I, § 1002(c), July 27, 1995, 109 Stat. 236; Pub. L. 104–330, title V, § 501(b)(2), Oct. 26, 1996, 110 Stat. 4042; Pub. L. 105–276, title V, §§ 510, 518(a)(1), (b), 522(b)(1), 566, Oct. 21, 1998, 112 Stat. 2531, 2551, 2564, 2632.) Editorial Notes REFERENCES IN TEXT Section 1437o of this title, referred to in subsec. (c)(6), was repealed by Pub. L. 101–625, title II, § 289(b), Nov. 28, 1990, 104 Stat. 4128. Section 1437l of this title, referred to in subsec. (c)(7)(A)(iii), (B)(iii), was repealed by Pub. L. 105–276, title V, § 522(a), Oct. 21, 1998, 112 Stat. 2564. Section 1421b of this title, referred to in subsec. (c)(7)(A)(ix), (B)(ix), was omitted in the general revision of this chapter by Pub. L. 93–383, title II, § 201(a), Aug. 22, 1974, 88 Stat. 653. The Single Audit Act, referred to in subsec. (h)(2) heading, probably means the Single Audit Act of 1984, Pub. L. 98–502, Oct. 19, 1984, 98 Stat. 2327, which enacted chapter 75 (§ 7501 et seq.) of Title 31, Money and Fi- nance, and provisions set out as notes under section 7501 of Title 31. For complete classification of this Act to the Code, see Short Title of 1984 Amendment note set out under section 7501 of Title 31 and Tables. PRIOR PROVISIONS A prior section 5 of act Sept. 1, 1937, ch. 896, 50 Stat. 890, as amended, enumerated miscellaneous powers and functions of the Authority and was classified to section 1405 of this title, prior to the general revision of this chapter by Pub. L. 93–383. AMENDMENTS 1998—Subsec. (c)(5). Pub. L. 105–276, § 522(b)(1), sub- stituted ‘‘for use under section 1437g of this title’’ for ‘‘for use under section 1437l of this title’’. Subsec. (e)(2). Pub. L. 105–276, § 518(b), inserted before period at end ‘‘; the Secretary shall require that each such agreement shall provide that, notwithstanding any order, judgment, or decree of any court (including any settlement order), before making any amounts that are provided pursuant to any contract for con- tributions under this subchapter available for use for the development of any housing or other property not previously used as public housing, the public housing agency shall (A) notify the chief executive officer (or other appropriate official) of the unit of general local government in which the public housing for which such amounts are to be so used is located (or to be located) of such use, and (B) pursuant to the request of such unit of general local government, provide such infor- mation as may reasonably be requested by such unit of general local government regarding the public housing to be so assisted (except to the extent otherwise prohib- ited by law)’’. Subsec. (h). Pub. L. 105–276, § 566, added subsec. (h). Pub. L. 105–276, § 518(a)(1)(A), struck out subsec. (h) which read as follows: ‘‘Notwithstanding any other pro- vision of law, a public housing agency may sell a low- income housing project to its lower income tenants, on such terms and conditions as the agency may deter- mine, without affecting the Secretary’s commitment to pay annual contributions with respect to that project, but such contributions shall not exceed the maximum contributions authorized under subsection (a) of this section.’’ Subsec. (i). Pub. L. 105–276, § 518(a)(1), redesignated subsec. (l) as (i) and struck out former subsec. (i) which read as follows: ‘‘In entering into contracts for assist- ance with respect to newly constructed or substantially rehabilitated projects under this section (other than for projects assisted pursuant to section 1437f of this title), the Secretary shall require the installation of a passive or active solar energy system in any such project where the Secretary determines that such installation would be cost effective over the estimated life of the system.’’ Subsecs. (j), (k). Pub. L. 105–276, § 518(a)(1)(A), struck out subsecs. (j) and (k), which had: in subsec. (j), placed conditions upon reservation of funds for development of public housing after Sept. 30, 1987, and placed limita- tions on amounts used for redesign, reconstruction, re- development, or operational improvement of existing projects, but directed that not less than 5 percent of certain amounts appropriated in fiscal years 1993 and 1994 be reserved for public housing projects designated for elderly or disabled families; and in subsec. (k), pro- hibited recapture of amounts of public housing develop- ment funds reserved to a public housing agency for fail- ure to begin construction or rehabilitation, or to com- plete acquisition, during 30-month period following date of reservation. Subsec. (l). Pub. L. 105–276, § 518(a)(1)(B), redesignated subsec. (l) as (i). Pub. L. 105–276, § 510, added subsec. (l). 1996—Subsec. (j)(1). Pub. L. 104–330, § 501(b)(2)(A), struck out ‘‘(other than for Indian families)’’ after ‘‘for public housing’’ in introductory provisions. Subsec. (l). Pub. L. 104–330, § 501(b)(2)(B), struck out subsec. (l) which read as follows: ‘‘The Secretary may not use as a criterion for distributing assistance under this section the progress made by an Indian public housing agency in collecting rents owed by tenants un- less— ‘‘(1) such criterion is used as 1 of several criteria that are weighted proportionally and is established by regulations issued after public notice and oppor- tunity to comment in accordance with section 553 of title 5; or ‘‘(2) the Secretary determines that the Indian pub- lic housing agency has demonstrated a pattern of substantial noncompliance with requirements gov- erning the collection of rents.’’ 1995—Subsec. (h). Pub. L. 104–19 struck out at end ‘‘Any such sale shall be subject to the restrictions con- tained in section 1437aaa–3(g) of this title.’’ 1992—Subsec. (c)(6). Pub. L. 102–550, § 101(a), inserted at end ‘‘The aggregate amount of budget authority that may be obligated for assistance referred to in para- graph (7) is increased (to the extent approved in appro- priation Acts) by $14,710,990,520 on October 1, 1992, and by $15,328,852,122 on October 1993.’’ Subsec. (c)(7)(A), (B). Pub. L. 102–550, § 101(b), added subpars. (A) and (B) and struck out former subpars. (A) and (B) which directed Secretary to reserve authority to enter into certain obligations aggregating specified amounts using par. (6) budget authority and balances of such authority available in fiscal years 1991 and 1992. Subsec. (j)(1)(D). Pub. L. 102–550, § 624(c)(1), which di- rected the striking of ‘‘and’’ at end, was executed by striking ‘‘or’’ at end to reflect the probable intent of Congress. Subsec. (j)(1)(E). Pub. L. 102–550, § 624(c)(3), which di- rected amendment of subsec. (j)(1) by adding at the end a new subpar. (E), was executed by adding subsec. (E) after subpar. (D) to reflect the probable intent of Con- gress. Former subpar. (E) redesignated (F). Subsec. (j)(1)(F). Pub. L. 102–550, § 624(c)(2), redesig- nated subpar. (E) as (F). Subsec. (j)(2). Pub. L. 102–550, § 624(a), added subpar. (G). Pub. L. 102–550, § 111(a), amended par. (2) generally. Prior to amendment, par. (2) read as follows: ‘‘Notwith- standing any other provision of law, not more than 20 percent of the funds appropriated for development of public housing also may be committed by the Sec- retary for the substantial redesign, reconstruction, or redevelopment of existing public housing projects or units, which work shall be carried out pursuant to the rules and regulations applicable to the development of public housing.’’ Page 4552 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437c Subsec. (j)(3). Pub. L. 102–550, § 624(b), added par. (3). 1990—Subsec. (a)(3). Pub. L. 101–625, § 572(2), sub- stituted ‘‘low-income housing’’ for ‘‘lower income hous- ing’’. Subsec. (c)(6). Pub. L. 101–625, § 571(a), inserted at end ‘‘The aggregate amount of budget authority that may be obligated for assistance referred to in paragraph (7) is increased (to the extent approved in appropriation Acts) by $16,194,000,000 on October 1, 1990, and by $14,709,400,000 on October 1, 1991.’’ Subsec. (c)(7)(A), (B). Pub. L. 101–625, § 571(b), amend- ed subpars. (A) and (B) generally, substituting present provisions for provisions directing Secretary to reserve authority to enter into certain obligations aggregating specified amounts using par. (6) budget authority and balances of such authority available in fiscal years 1988 and 1989. Subsecs. (d), (e). Pub. L. 101–625, § 572(2), substituted ‘‘low-income housing’’ for ‘‘lower income housing’’ wherever appearing. Subsec. (h). Pub. L. 101–625, § 572(2), substituted ‘‘low- income housing’’ for ‘‘lower income housing’’. Pub. L. 101–625, § 417(a), inserted at end ‘‘Any such sale shall be subject to the restrictions contained in section 1437aaa–3(g) of this title.’’ 1988—Pub. L. 100–242, § 112(b)(1)(A), substituted ‘‘Con- tributions’’ for ‘‘Annual contributions’’ in section catchline. Subsec. (a). Pub. L. 100–242, § 112(a), amended subsec. (a) generally, revising and restating as pars. (1) to (3) provisions formerly contained in a single unnumbered par. Subsec. (c)(6). Pub. L. 100–242, § 101(a), inserted sen- tence at end providing for increases on Oct. 1, 1987, and Oct. 1, 1988, of aggregate amount of budget authority that may be obligated for specified purposes. Subsec. (c)(7). Pub. L. 100–242, § 101(b), amended par. (7) generally, substituting provisions relating to Sec- retary’s authority to enter into obligations under this section for fiscal years 1988 and 1989, for provisions re- lating to Secretary’s authority for fiscal years 1984 and 1985 and substituting provisions whereby amounts available for conversion of project to assistance under section 1437f(b)(1) of this title and amounts available for assistance under section 1437f for property disposi- tion, if not required for such purpose, shall be used for assistance under section 1437f(b)(1) of this title, for pro- visions wherein specific authorities under this para- graph would be subject to adjustments under par. (5) of this subsection. Subsec. (c)(8). Pub. L. 100–358, § 3, added par. (8). Subsec. (e)(2). Pub. L. 100–242, § 112(b)(1)(B), struck out ‘‘annual’’ before ‘‘contributions’’. Subsecs. (j) to (l). Pub. L. 100–242, §§ 113–115, added subsecs. (j) to (l). 1983—Subsec. (c)(1). Pub. L. 98–181, § 201(b)(1), struck out concluding provision requiring the Secretary, in utilizing the additional authority to enter into con- tracts on and after Oct. 1, 1980, to administer the au- thorized programs to provide assistance, to the max- imum extent practicable, consistent with section 1439(d) of this title. Subsec. (c)(2). Pub. L. 98–181, § 201(b)(2), redesignated par. (4) as (2), and struck out former par. (2) which from funds made available on Oct. 1, 1980, had required at least $100,000,000 be available for section 1437l projects, and from remaining difference limited use of funds to 37.5 and 62.5 per centum for existing section 1437f projects and for newly constructed and substantially rehabilitated units. Subsec. (c)(3). Pub. L. 98–181, § 201(b)(2), redesignated par. (5) as (3), and struck out former par. (3) which from funds made available on Oct. 1, 1981, had required at least $75,000,000 be available for section 1437l projects, from remaining difference allocated sums as provided in section 1439(d) for different community and area uses, and from remaining difference required the ac- commodation of preferences of units of local govern- ment based on stated factors. Subsec. (c)(4). Pub. L. 98–181, § 201(b)(2), redesignated par. (6) as (4). Former par. (4) redesignated (2). Subsec. (c)(5) to (7). Pub. L. 98–181, § 201(b)(3), added pars. (5) to (7). Former pars. (5) and (6) redesignated (3) and (4), respectively. 1981—Subsec. (a). Pub. L. 97–35, § 322(c), substituted references to lower income for references to low-income wherever appearing. Subsec. (c). Pub. L. 97–35, § 321(a)–(c), in par. (1) in- serted provisions relating to increases on Oct. 1, 1981, and amount respecting additional authority as of Oct. 1, 1981, added par. (3), and redesignated former pars. (3) to (5) as (4) to (6), respectively. Subsecs. (d) to (f), (h). Pub. L. 97–35, § 322(c), sub- stituted references to lower income for references to low-income wherever appearing. 1980—Subsec. (c). Pub. L. 96–399, § 201(a), redesignated existing provisions as par. (1), among other changes, substituted provisions relating to the discretionary power of the Secretary to enter into contracts for an- nual contributions for provisions authorizing the Sec- retary to enter into such contracts, deleted references to contributions for assistance to Indian tribes, and added pars. (2) to (5). Subsec. (i). Pub. L. 96–399, § 210, added subsec. (i). 1979—Subsec. (c). Pub. L. 96–153 authorized increase in aggregate contractual contributions by $1,140,661,000 on Oct. 1, 1979, and inserted requirements that out of such additional authority not more than $195,053,000 be au- thorized to be approved in appropriation acts for units assisted under this chapter other than under section 1437f of this title and that not less than $50,000,000 of the later amount be authorized to be approved for mod- ernization of the units. 1978—Subsec. (c). Pub. L. 95–619 authorized the Sec- retary to enter into annual contribution contracts ag- gregating not more than $10,000,000 per annum for fi- nancing the purchase and installation of energy con- serving improvement in existing low-income housing projects which the Secretary determined had the great- est need for such improvements. Pub. L. 95–557 inserted ‘‘and by $1,195,043,000 on Octo- ber 1, 1978’’ after ‘‘October 1, 1977’’, ‘‘and on and after October 1, 1978’’ after ‘‘October 1, 1976’’ and ‘‘Of the ad- ditional authority to enter into contracts for annual contributions provided on October 1, 1978, and approved in appropriation Acts, the Secretary shall make avail- able not less than $50,000,000 for modernization of low- income housing projects’’ after ‘‘pursuant to section 5304(a)(4) of this title’’, and struck out provisions after ‘‘only such amounts as may be approved in appropria- tions Acts’’ mandating that of the additional authority to enter into contracts provided on October 1, 1976, at least $60,000,000 be made available for modernization of low-income housing projects and at least $140,000,000 to assist in financing low-income housing projects for ownership by public housing agencies other than under section 1437f, of which not less than $100,000,000 shall be available only for the purpose of financing the con- struction or rehabilitation of low-income housing projects, and provision after ‘‘plans prepared pursuant to section 5304(a)(4) of this title’’ mandating that of the additional authority to enter into contracts for annual contributions provided on Oct. 1, 1977, not less than $42,500,000 shall be made available for low-income hous- ing projects, not less than $197,139,200 for low-income housing projects permanently financed by loans from State housing finance or State development agencies, and not less than $120,000,000 for low-income housing projects permanently financed by loans pursuant to section 1701q of title 12. 1977—Subsec. (c). Pub. L. 95–128 authorized increase in aggregate contractual contributions by $1,159,995,000 on Oct. 1, 1977, and required the Secretary to make avail- able therefrom minimum amounts of $42,500,000 for modernization of low-income housing projects, $197,139,200 for such projects financed by loans from State housing finance or State development agencies, and $120,000,000 for such projects financed by loans pur- suant to section 1701q of title 12. Pub. L. 95–24 substituted ‘‘and by $1,228,050,000 on Oc- tober 1, 1976’’ for ‘‘and by $850,000,000 on October 1, 1976’’. Page 4553 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437c 1976—Subsec. (c). Pub. L. 94–375 substituted ‘‘$1,524,000,000 per annum, which limit shall be in- creased by $965,000,000 on July 1, 1974, by $662,300,000 on July 1, 1975, and by $850,000,000 on October 1, 1976, ex- cept that the additional authority to enter into con- tracts for annual contributions provided on or after July 1, 1975, shall be effective only in such amounts as may be approved in appropriation Acts’’ for ‘‘$1,199,250,000 per annum, which limit shall be in- creased by $225,000,000 on July 1, 1971, by $150,000,000 on July 1, 1972, by $400,000,000 on July 1, 1973, and by $965,000,000 on July 1, 1974’’, provision requiring the Secretary make available a total of at least $200,000,000 for modernization and financing of low-income housing projects under the additional authority to enter into contracts for annual contributions provided on Oct. 1, 1976, for provision which required the Secretary to enter into contracts for annual contributions of at least $150,000,000 to assist in financing the development or acquisition cost of low-income housing projects, in- serted ‘‘and by not less than $17,000,000 per annum on October 1, 1976,’’ after ‘‘not less than $15,000,000 per annum, on July 1, 1975’’, and struck out ‘‘to the amounts of contracts for annual contributions required to be entered into by the Secretary under the second sentence of this subsection’’ after ‘‘In addition’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1998 AMENDMENT Amendment by title V of Pub. L. 105–276 effective and applicable beginning upon Oct. 1, 1999, except as other- wise provided, with provision that Secretary may im- plement amendment before such date, except to extent that such amendment provides otherwise, and with sav- ings provision, see section 503 of Pub. L. 105–276, set out as a note under section 1437 of this title. EFFECTIVE DATE OF 1996 AMENDMENT Amendment by Pub. L. 104–330 effective Oct. 1, 1997, except as otherwise expressly provided, see section 107 of Pub. L. 104–330, set out as an Effective Date note under section 4101 of Title 25, Indians. EFFECTIVE DATE OF 1995 AMENDMENT Pub. L. 104–19, title I, § 1002(d), July 27, 1995, 109 Stat. 236, as amended by Pub. L. 104–134, title I, § 101(e) [title II, § 201(b)(1)], Apr. 26, 1996, 110 Stat. 1321–257, 1321–278; renumbered title I, Pub. L. 104–140, § 1(a), May 2, 1996, 110 Stat. 1327; Pub. L. 104–204, title II, § 201(b), Sept. 26, 1996, 110 Stat. 2892; Pub. L. 105–65, title II, § 201(a), Oct. 27, 1997, 111 Stat. 1364, provided that: Subsections (a), (b), and (c) [amending this section and sections 1437p and 1437aaa–3 of this title] shall be effective for applica- tions for the demolition, disposition, or conversion to homeownership of public housing approved by the Sec- retary, and other consolidation and relocation activi- ties of public housing agencies undertaken, on, before, or after September 30, 1995 and on or before September 30, 1998.’’ EFFECTIVE DATE OF 1992 AMENDMENT Amendment by subtitles B through F of title VI [§§ 621–685] of Pub. L. 102–550 applicable upon expiration of 6-month period beginning Oct. 28, 1992, except as oth- erwise provided, see section 13642 of this title. EFFECTIVE DATE OF 1990 AMENDMENT Pub. L. 101–625, title IV, § 417(b), Nov. 28, 1990, 104 Stat. 4161, provided that: ‘‘The amendment made by subsection (a) [amending this section] shall not apply to applications submitted under section 5(h) of the United States Housing Act of 1937 [subsec. (h) of this section] prior to October 1, 1990.’’ EFFECTIVE DATE OF 1988 AMENDMENT For date on which Secretary of Housing and Urban Development may carry out programs to provide lower income housing on Indian reservations and other In- dian areas only in accordance with amendment by Pub. L. 100–358, see section 6 of Pub. L. 100–358, set out as a note under section 1437a of this title. 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. EFFECTIVE DATE OF 1978 AMENDMENT Pub. L. 95–557, title II, § 206(h), Oct. 31, 1978, 92 Stat. 2093, provided that: ‘‘The amendments made by this section [amending this section and sections 1437a, 1437f, and 1437g of this title], except the amendment made by subsection (d) [amending section 1437f of this title], shall become effective on October 1, 1978.’’ EFFECTIVE DATE OF 1976 AMENDMENT Pub. L. 94–375, § 2(b)(1), (2), Aug. 3, 1976, 90 Stat. 1067, provided that the amendment of subsec. (c), which re- quired the Secretary to make available a total of $200,000,000 for modernization and financing of low-in- come housing and which struck out reference to the amount of contracts the Secretary was required to enter into under the second sentence of this subsection, is effective Oct. 1, 1976. EFFECTIVE DATE Section effective on such date or dates as the Sec- retary of Housing and Urban Development shall pre- scribe, but not later than eighteen months after Aug. 22, 1974, except that all of the provisions of this section shall become effective on the same date, see section 201(b) of Pub. L. 93–383, set out as a note under section 1437 of this title. REGULATIONS Pub. L. 102–550, title I, § 111(c), Oct. 28, 1992, 106 Stat. 3689, provided that: ‘‘The Secretary shall issue regula- tions necessary to carry out the amendments made by this section [amending this section and sections 1437l and 1437p of this title] as provided under section 191 of this Act [42 U.S.C. 1437a note].’’ INAPPLICABILITY OF CERTAIN 1992 AMENDMENTS TO INDIAN PUBLIC HOUSING Amendment by section 624 of Pub. L. 102–550 not ap- plicable with respect to lower income housing devel- oped or operated pursuant to contract between Sec- retary of Housing and Urban Development and Indian housing authority, see section 626 of Pub. L. 102–550, set out as a note under section 1437a of this title. INCREASE IN BUDGET AUTHORITY FOR CERTIFICATE AND VOUCHER PROGRAMS FOR DISASTER RELIEF Pub. L. 101–625, title IX, § 931, Nov. 28, 1990, 104 Stat. 4403, as amended by Pub. L. 105–276, title V, § 550(c), Oct. 21, 1998, 112 Stat. 2609, provided that: ‘‘The budget au- thority available under section 5(c) of the United States Housing Act of 1937 (42 U.S.C. 1437c(c)) for ten- ant-based assistance under section 8 of the United States Housing Act of 1937 [42 U.S.C. 1437f] is authorized to be increased in any fiscal year in which a major dis- aster is declared by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act [42 U.S.C. 5121 et seq.] in such amounts as may be nec- essary to provide assistance under such programs for individuals and families whose housing has been dam- aged or destroyed as a result of such disaster, except that in implementing this section, the Secretary shall evaluate the natural hazards to which any permanent replacement housing is exposed and shall take appro- priate action to mitigate such hazards.’’ INCREASE IN BUDGET AUTHORITY FOR MODERATE REHABILITATION PROGRAM FOR DISASTER RELIEF Pub. L. 101–625, title IX, § 932, Nov. 28, 1990, 104 Stat. 4403, provided that: ‘‘The budget authority available Page 4554 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437c–1 under section 5(c) of the United States Housing Act of 1937 (42 U.S.C. 1437c(c)) for assistance under the mod- erate rehabilitation program under section 8(e)(2) of such Act [42 U.S.C. 1437f(e)(2)] is authorized to be in- creased in any fiscal year in which a major disaster is declared by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act [42 U.S.C. 5121 et seq.] in such amount as may be necessary to provide assistance under such program for individ- uals and families whose housing has been damaged or destroyed as a result of such disaster, except that in implementing this section, the Secretary shall evalu- ate the natural hazards to which any permanent re- placement housing is exposed and shall take appro- priate action to mitigate such hazards.’’ § 1437c–1. Public housing agency plans (a) 5-year plan (1) In general Subject to paragraph (3), not less than once every 5 fiscal years, each public housing agen- cy shall submit to the Secretary a plan that includes, with respect to the 5 fiscal years im- mediately following the date on which the plan is submitted— (A) a statement of the mission of the pub- lic housing agency for serving the needs of low-income and very low-income families in the jurisdiction of the public housing agency during such fiscal years; and (B) a statement of the goals and objectives of the public housing agency that will enable the public housing agency to serve the needs identified pursuant to subparagraph (A) dur- ing those fiscal years. (2) Statement of goals The 5-year plan shall include a statement by any public housing agency of the goals, objec- tives, policies, or programs that will enable the housing authority to serve the needs of child and adult victims of domestic violence, dating violence, sexual assault, or stalking. (3) Initial plan The initial 5-year plan submitted by a public housing agency under this subsection shall be submitted for the 5-year period beginning on October 1, 1999, or the first fiscal year there- after for which the public housing agency ini- tially receives assistance under this chapter. (b) Annual plan (1) In general Effective beginning upon October 1, 1999, each public housing agency shall submit to the Secretary an annual public housing agen- cy plan under this subsection for each fiscal year for which the public housing agency re- ceives assistance under section 1437f(o) or 1437g of this title. (2) Updates For each fiscal year after the initial submis- sion of an annual plan under this subsection by a public housing agency, the public housing agency may comply with requirements for submission of a plan under this subsection by submitting an update of the plan for the fiscal year. (3) Exemption of certain PHAs from filing re- quirement (A) In general Notwithstanding paragraph (1) or any other provision of this chapter— (i) the requirement under paragraph (1) shall not apply to any qualified public housing agency; and (ii) except as provided in subsection (e)(4)(B), any reference in this section or any other provision of law to a ‘‘public housing agency’’ shall not be considered to refer to any qualified public housing agen- cy, to the extent such reference applies to the requirement to submit an annual pub- lic housing agency plan under this sub- section. (B) Civil rights certification Notwithstanding that qualified public housing agencies are exempt under subpara- graph (A) from the requirement under this section to prepare and submit an annual public housing plan, each qualified public housing agency shall, on an annual basis, make the certification described in para- graph (16) of subsection (d), except that for purposes of such qualified public housing agencies, such paragraph shall be applied by substituting ‘‘the public housing program of the agency’’ for ‘‘the public housing agency plan’’. (C) Definition For purposes of this section, the term ‘‘qualified public housing agency’’ means a public housing agency that meets the fol- lowing requirements: (i) The sum of (I) the number of public housing dwelling units administered by the agency, and (II) the number of vouch- ers under section 1437f(o) of this title ad- ministered by the agency, is 550 or fewer. (ii) The agency is not designated under section 1437d(j)(2) of this title as a troubled public housing agency, and does not have a failing score under the section 8 [42 U.S.C. 1437f] Management Assessment Program during the prior 12 months. (c) Procedures (1) In general The Secretary shall establish requirements and procedures for submission and review of plans, including requirements for timing and form of submission, and for the contents of such plans. (2) Contents The procedures established under paragraph (1) shall provide that a public housing agency shall— (A) in developing the plan consult with the resident advisory board established under subsection (e); and (B) ensure that the plan under this section is consistent with the applicable comprehen- sive housing affordability strategy (or any consolidated plan incorporating such strat- egy) for the jurisdiction in which the public housing agency is located, in accordance