42 U.S.C. § 12872 — Planning grants

Page 8489 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 12872 Editorial Notes REFERENCES IN TEXT This part, referred to in subsec. (b), was in the origi- nal ‘‘this subtitle’’, meaning subtitle B (§§ 421–431) of title IV of Pub. L. 101–625, Nov. 28, 1990, 104 Stat. 4162, which enacted this part and amended section 1709 of Title 12, Banks and Banking. AMENDMENTS 1992—Subsec. (c). Pub. L. 102–550 struck out subsec. (c) which read as follows: ‘‘AUTHORIZATION OF APPRO- PRIATIONS.—There is authorized to be appropriated for grants under this part $51,000,000 for fiscal year 1991 and $280,000,000 for fiscal year 1992. Any amounts appro- priated pursuant to this subsection shall remain avail- able until expended.’’ § 12872. Planning grants (a) Grants The Secretary is authorized to make planning grants to applicants for the purpose of devel- oping homeownership programs under this part. The amount of a planning grant under this sec- tion may not exceed $200,000, except that the Secretary may for good cause approve a grant in a higher amount. (b) Eligible activities Planning grants may be used for activities to develop homeownership programs (which may include programs for cooperative ownership), in- cluding— (1) development of resident management cor- porations and resident councils; (2) training and technical assistance of ap- plicants related to the development of a spe- cific homeownership program; (3) studies of the feasibility of a homeowner- ship program; (4) inspection for lead-based paint hazards, as required by section 4822(a) of this title; (5) preliminary architectural and engineer- ing work; (6) tenant and homebuyer counseling and training; (7) planning for economic development, job training, and self-sufficiency activities that promote economic self-sufficiency for home- buyers and homeowners under the homeowner- ship program; (8) development of security plans; and (9) preparation of an application for an im- plementation grant under this part. (c) Application (1) Form and procedures An application for a planning grant shall be submitted by an applicant in such form and in accordance with such procedures as the Sec- retary shall establish. (2) Minimum requirements The Secretary shall require that an applica- tion contain at a minimum— (A) a request for a planning grant, speci- fying the activities proposed to be carried out, the schedule for completing the activi- ties, the personnel necessary to complete the activities, and the amount of the grant requested; (B) a description of the applicant and a statement of its qualifications; (C) identification and description of the el- igible property involved, and a description of the composition of the tenants, including family size and income; (D) a certification by the public official re- sponsible for submitting the comprehensive housing affordability strategy under section 12705 of this title that the proposed activi- ties are consistent with the approved hous- ing strategy of the State or unit of general local government within which the project is located (or, during the first 12 months after November 28, 1990, that the application is consistent with such other existing State or local housing plan or strategy that the Sec- retary shall determine to be appropriate); and (E) a certification that the applicant will comply with the requirements of the Fair Housing Act [42 U.S.C. 3601 et seq.], title VI of the Civil Rights Act of 1964 [42 U.S.C. 2000d et seq.], section 504 of the Rehabilita- tion Act of 1973 [29 U.S.C. 794], and the Age Discrimination Act of 1975 [42 U.S.C. 6101 et seq.], and will affirmatively further fair housing. (d) Selection criteria The Secretary shall, by regulation, establish selection criteria for a national competition for assistance under this section, which shall in- clude— (1) the qualifications or potential capabili- ties of the applicant; (2) the extent of tenant interest in the devel- opment of a homeownership program for the property; (3) the potential of the applicant for devel- oping a successful and affordable homeowner- ship program and the suitability of the prop- erty for homeownership; (4) national geographic diversity among housing for which applicants are selected to receive assistance; and (5) such other factors that the Secretary shall require that (in the determination of the Secretary) are appropriate for purposes of car- rying out the program established by this part in an effective and efficient manner. (Pub. L. 101–625, title IV, § 422, Nov. 28, 1990, 104 Stat. 4162; Pub. L. 102–550, title X, § 1012(i)(1), Oct. 28, 1992, 106 Stat. 3906.) Editorial Notes REFERENCES IN TEXT The Fair Housing Act, referred to in subsec. (c)(2)(E), is title VIII of Pub. L. 90–284, Apr. 11, 1968, 82 Stat. 81, which is classified principally to subchapter I (§ 3601 et seq.) of chapter 45 of this title. For complete classifica- tion of this Act to the Code, see Short Title note set out under section 3601 of this title and Tables. The Civil Rights Act of 1964, referred to in subsec. (c)(2)(E), is Pub. L. 88–352, July 2, 1964, 78 Stat. 241. Title VI of the Act is classified generally to subchapter V (§ 2000d et seq.) of chapter 21 of this title. For com- plete classification of this Act to the Code, see Short Title note set out under section 2000a of this title and Tables. The Age Discrimination Act of 1975, referred to in subsec. (c)(2)(E), is title III of Pub. L. 94–135, Nov. 28, 1975, 89 Stat. 728, which is classified generally to chap- ter 76 (§ 6101 et seq.) of this title. For complete classi- Page 8490 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 12873 1 See References in Text note below. 2 So in original. Two subsecs. (d) have been enacted. fication of this Act to the Code, see Short Title note set out under section 6101 of this title and Tables. AMENDMENTS 1992—Subsec. (b)(4) to (9). Pub. L. 102–550 added par. (4) and redesignated former pars. (4) to (8) as (5) to (9), respectively. § 12873. Implementation grants (a) Grants The Secretary is authorized to make imple- mentation grants to applicants for the purpose of carrying out homeownership programs ap- proved under this part. (b) Eligible activities Implementation grants may be used for activi- ties to carry out homeownership programs (in- cluding programs for cooperative ownership), in- cluding the following activities: (1) Architectural and engineering work. (2) Acquisition of the eligible property for the purpose of transferring ownership to eligi- ble families in accordance with a homeowner- ship program that meets the requirements under this part. (3) Rehabilitation of any property covered by the homeownership program, in accordance with standards established by the Secretary. (4) Abatement of lead-based paint hazards, as required by section 4822(a) of this title. (5) Administrative costs of the applicant, which may not exceed 15 percent of the amount of the assistance provided under this section. (6) Development of resident management corporations and resident management coun- cils, but only if the applicant has not received assistance under section 12872 1 of this title for such activities. (7) Counseling and training of homebuyers and homeowners under the homeownership program. (8) Relocation of tenants who elect to move. (9) Any necessary temporary relocation of tenants during rehabilitation. (10) Planning for establishment of for- or not-for-profit small businesses by or on behalf of residents, job training, and other activities that promote economic self-sufficiency of homebuyers and homeowners of the property covered by the homeownership program and economic development of the neighborhood. (11) Funding of operating expenses and re- placement reserves of the property covered by the homeownership program. (12) Legal fees. (13) Defraying costs for the ongoing training needs of the recipient that are related to de- veloping and carrying out the homeownership program. (14) Economic development activities that promote economic self-sufficiency of home- buyers, residents, and homeowners under the homeownership program. (c) Matching funding (1) In general Each recipient shall assure that contribu- tions equal to not less than 33 percent of the grant amounts made available under this sec- tion, excluding any amounts provided for post- sale operating expense, shall be provided from non-Federal sources to carry out the home- ownership program. (2) Form Such contributions may be in the form of— (A) cash contributions from non-Federal resources, which may not include funds from a grant made under section 5306(b) or section 5306(d) of this title; (B) payment of administrative expenses, as defined by the Secretary, from non-Federal resources, including funds from a grant made under section 5306(b) or section 5306(d) of this title; (C) the value of taxes, fees, or other charges that are normally and customarily imposed but are waived, foregone, or de- ferred in a manner that facilitates the im- plementation of a homeownership program assisted under this part; (D) the value of land or other real property as appraised according to procedures accept- able to the Secretary; (E) the value of investment in on-site and off-site infrastructure required for a home- ownership program assisted under this part; or (F) such other in-kind contributions as the Secretary may approve. Contributions for administrative expenses shall be recognized only up to an amount equal to 7 percent of the total amount of grants made available under this section. (d) 2 Application (1) Form and procedure An application for an implementation grant shall be submitted by an applicant in such form and in accordance with such procedures as the Secretary shall establish. (2) Minimum requirements The Secretary shall require that an applica- tion contain at a minimum— (A) a request for an implementation grant, specifying the amount of the grant re- quested and its proposed uses; (B) if applicable, an application for assist- ance under section 1437f of this title, speci- fying the proposed uses of such assistance and the period during which the assistance will be needed; (C) a description of the qualifications and experience of the applicant in providing low- income housing; (D) a description of the proposed home- ownership program, consistent with section 12874 1 of this title and the other require- ments of this part, specifying the activities proposed to be carried out and their esti- mated costs, identifying reasonable sched- ules for carrying it out, and demonstrating the program will comply with the afford- ability requirements under section 12874(b) 1 of this title; (E) identification and description of the property involved, and a description of the