42 U.S.C. § 1439 — Local housing assistance plan

Page 4726 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437bbb–9 1 So in original. Probably should be followed by ‘‘of’’. 1 So in original. The comma probably should be ‘‘or’’. 2 So in original. The word ‘‘or’’ and the comma probably should not appear. § 1437bbb–9. Termination and evaluation (a) Termination The demonstration program under this sub- chapter shall terminate not less than 2 and not more than 5 years after the date on which the demonstration program is commenced. (b) Evaluation Not later than 6 months after the termination of the demonstration program under this sub- chapter, the Secretary shall submit to the Con- gress a final report, which shall include— (1) an evaluation 1 the effectiveness of the activities carried out under the demonstration program; and (2) any findings and recommendations of the Secretary for any appropriate legislative ac- tion. (Sept. 1, 1937, ch. 896, title IV, § 410, as added Pub. L. 105–276, title V, § 561, Oct. 21, 1998, 112 Stat. 2624.) SUBCHAPTER III—MISCELLANEOUS PROVISIONS § 1438. Repealed. Pub. L. 105–276, title V, § 582(a)(15), Oct. 21, 1998, 112 Stat. 2644 Section, Pub. L. 93–383, title II, § 209, Aug. 22, 1974, 88 Stat. 669; Pub. L. 98–479, title II, § 201(g), Oct. 17, 1984, 98 Stat. 2228; Pub. L. 102–550, title VI, § 625(b), Oct. 28, 1992, 106 Stat. 3820, related to special low-income housing projects for elderly or disabled families. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal effective and applicable beginning upon Oct. 1, 1999, except as otherwise provided, with provision that Secretary may implement repeal before such date, and with savings provision, see section 503 of Pub. L. 105–276, set out as an Effective Date of 1998 Amendment note under section 1437 of this title. § 1439. Local housing assistance plan (a) Applicability of approved plan to housing as- sistance application; procedure upon receipt of application by Secretary of Housing and Urban Development; definitions (1) The Secretary of Housing and Urban Devel- opment, upon receiving an application for hous- ing assistance under the United States Housing Act of 1937 [42 U.S.C. 1437 et seq.],1 section 101 of the Housing and Urban Development Act of 1965 [12 U.S.C. 1701s], or,2 if the unit of general local government in which the proposed assistance is to be provided has an approved housing assist- ance plan, shall— (A) not later than ten days after receipt of the application, notify the chief executive offi- cer of such unit of general local government that such application is under consideration; and (B) afford such unit of general local govern- ment the opportunity, during the thirty-day period beginning on the date of such notifica- tion, to object to the approval of the applica- tion on the grounds that the application is in- consistent with its housing assistance plan. Upon receiving an application for such housing assistance, the Secretary shall assure that funds made available under this section shall be uti- lized to the maximum extent practicable to meet the needs and goals identified in the unit of local government’s housing assistance plan. (2) If the unit of general local government ob- jects to the application on the grounds that it is inconsistent with its housing assistance plan, the Secretary may not approve the application unless he determines that the application is con- sistent with such housing assistance plan. If the Secretary determines, that such application is consistent with the housing assistance plan, he shall notify the chief executive officer of the unit of general local government of his deter- mination and the reasons therefor in writing. If the Secretary concurs with the objection of the unit of local government, he shall notify the ap- plicant stating the reasons therefor in writing. (3) If the Secretary does not receive an objec- tion by the close of the period referred to in paragraph (1)(B), he may approve the applica- tion unless he finds it inconsistent with the housing assistance plan. If the Secretary deter- mines that an application is inconsistent with a housing assistance plan, he shall notify the ap- plicant stating the reasons therefor in writing. (4) The Secretary shall make the determina- tions referred to in paragraphs (2) and (3) within thirty days after he receives an objection pursu- ant to paragraph (1)(B) or within thirty days after the close of the period referred to in para- graph (1)(B), whichever is earlier. (5) As used in this section, the term ‘‘housing assistance plan’’ means a housing assistance plan submitted and approved under section 5304 of this title or, in the case of a unit of general local government not participating under title I of this Act [42 U.S.C. 5301 et seq.], a housing plan approved by the Secretary as meeting the re- quirements of this section. In developing a hous- ing assistance plan under this paragraph a unit of general local government shall consult with local public agencies involved in providing for the welfare of children to determine the housing needs of (A) families identified by the agencies as having a lack of adequate housing that is a primary factor in the imminent placement of a child in foster care or in preventing the dis- charge of a child from foster care and reunifica- tion with his or her family; and (B) children who, upon discharge of the child from foster care, cannot return to their family or extended family and for which adoption is not available. The unit of general local government shall in- clude in the housing assistance plan needs and goals with respect to such families and children. (b) Housing assistance applications subject to procedures The provisions of subsection (a) shall not apply to— (1) applications for assistance involving 12 or fewer units in a single project or development; (2) applications for assistance with respect to housing in new community developments approved under title IV of the Housing and Urban Development Act of 1968 [42 U.S.C. 3901 Page 4727 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1439 3 See References in Text note below. 4 So in original. Probably should be ‘‘section’’. et seq.] or title VII of the Housing and Urban Development Act of 1970 [42 U.S.C. 4501 et seq.] which the Secretary determines are necessary to meet the housing requirements under such title; or (3) applications for assistance with respect to housing financed by loans or loan guaran- tees from a State or agency thereof, except that the provisions of subsection (a) shall apply where the unit of general local govern- ment in which the assistance is to be provided objects in its housing assistance plan to the exemption provided by this paragraph. (c) Repealed. Pub. L. 105–276, title V, § 551(1), Oct. 21, 1998, 112 Stat. 2610 (d) Allocation and reservation of housing assist- ance funds; purposes; prohibited reallocation of unutilized funds; enumerated uses for re- tained funds; competition for reservation and obligation of funds (1)(A)(i) Except as provided by subparagraph (B), the Secretary shall allocate assistance re- ferred to in subsection (a)(1) the first time it is available for reservation on the basis of a for- mula that is contained in a regulation pre- scribed by the Secretary, and that is based on the relative needs of different States, areas, and communities, as reflected in data as to popu- lation, poverty, housing overcrowding, housing vacancies, amount of substandard housing, and other objectively measurable conditions speci- fied in the regulation. The Secretary may allo- cate assistance under the preceding sentence in such a manner that each State shall receive not less than one-half of one percent of the amount of funds available for each program referred to in subsection (a)(1) in each fiscal year. In allo- cating assistance under this paragraph for each program of housing assistance under subsection (a)(1), the Secretary shall apply the formula, to the extent practicable, in a manner so that the assistance under the program is allocated ac- cording to the particular relative needs under the preceding sentence that are characteristic of and related to the particular type of assistance provided under the program. Assistance under section 202 of the Housing Act of 1959 [12 U.S.C. 1701q] shall be allocated in a manner that en- sures that awards of the assistance under such section are made for projects of sufficient size to accommodate facilities for supportive services appropriate to the needs of frail elderly resi- dents. The preceding sentence shall not apply to projects acquired from the Resolution Trust Corporation under section 1441a(c) 3 of title 12. Amounts for tenant-based assistance under sec- tion 8(o) of the United States Housing Act of 1937 [42 U.S.C. 1437f(o)] may not be provided to any public housing agency that has been dis- qualified from providing such assistance. (ii) Assistance under section 8(o) of the United States Housing Act of 1937 [42 U.S.C. 1437f(o)] shall be allocated in a manner that enables par- ticipating jurisdictions to carry out, to the max- imum extent practicable, comprehensive hous- ing affordability strategies approved in accord- ance with section 105 of the Cranston-Gonzalez National Affordable Housing Act [42 U.S.C. 12705]. Such jurisdictions shall submit rec- ommendations for allocating assistance under such section 8(o) to the Secretary in accordance with procedures that the Secretary determines to be appropriate to permit allocations of such assistance to be made on the basis of timely and complete information. This clause may not be construed to prevent, alter, or otherwise affect the application of the formula established pur- suant to clause (i) for purposes of allocating such assistance. For purposes of this clause, the term ‘‘participating jurisdiction’’ means a State or unit of general local government designated by the Secretary to be a participating jurisdic- tion under title II of the Cranston-Gonzalez Na- tional Affordable Housing Act [42 U.S.C. 12721 et seq.]. (B) The formula allocation requirements of subparagraph (A) shall not apply to— (i) assistance that is approved in appropria- tion Acts for use under sections 4 9 [42 U.S.C. 1437g], or the rental rehabilitation grant pro- gram under section 17,3 of the United States Housing Act of 1937, except that the Secretary shall comply with section 102 of the Depart- ment of Housing and Urban Development Re- form Act of 1989 [42 U.S.C. 3545] with respect to such assistance; or (ii) other assistance referred to in subsection (a) that is approved in appropriation Acts for uses that the Secretary determines are incapa- ble of geographic allocation, including amend- ments of existing contracts, renewal of assist- ance contracts, assistance to families that would otherwise lose assistance due to the de- cision of the project owner to prepay the project mortgage or not to renew the assist- ance contract, assistance to prevent displace- ment or to provide replacement housing in connection with the demolition or disposition of public housing, and assistance in support of the property disposition and loan management functions of the Secretary. (C) Any allocation of assistance under sub- paragraph (A) shall, as determined by the Sec- retary, be made to the smallest practicable area, consistent with the delivery of assistance through a meaningful competitive process de- signed to serve areas with greater needs. (D) Any amounts allocated to a State or areas or communities within a State that are not like- ly to be used within a fiscal year shall not be re- allocated for use in another State, unless the Secretary determines that other areas or com- munities (that are eligible for assistance under the program) within the same State cannot use the amounts within that same fiscal year. (2) The Secretary may reserve such housing assistance funds as he deems appropriate for use by a State or agency thereof. (3)(A) Notwithstanding any other provision of law, with respect to fiscal years beginning after September 30, 1990, the Secretary may retain not more than 5 percent of the financial assistance that becomes available under programs de- scribed in subsection (a)(1) during any fiscal year. Any such financial assistance that is re- Page 4728 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1439 tained shall be available for subsequent alloca- tion to specific areas and communities, and may only be used for— (i) unforeseen housing needs resulting from natural and other disasters; (ii) housing needs resulting from emer- gencies, as certified by the Secretary, other than such disasters; (iii) housing needs resulting from the settle- ment of litigation; and (iv) housing in support of desegregation ef- forts. (B) Any amounts retained in any fiscal year under subparagraph (A) that are unexpended at the end of such fiscal year shall remain avail- able for the following fiscal year under the pro- gram under subsection (a)(1) from which the amount was retained. Such amounts shall be al- located on the basis of the formula under sub- section (d)(1). (4)(A) The Secretary shall not reserve or obli- gate assistance subject to allocation under para- graph (1)(A) to specific recipients, unless the as- sistance is first allocated on the basis of the for- mula contained in that paragraph and then is re- served and obligated pursuant to a competition. (B) Any competition referred to in subpara- graph (A) shall be conducted pursuant to spe- cific criteria for the selection of recipients of as- sistance. The criteria shall be contained in— (i) a regulation promulgated by the Sec- retary after notice and public comment; or (ii) to the extent authorized by law, a notice published in the Federal Register. (C) Subject to the times at which appropria- tions for assistance subject to paragraph (1)(A) may become available for reservation in any fis- cal year, the Secretary shall take such steps as the Secretary deems appropriate to ensure that, to the maximum extent practicable, the process referred to in subparagraph (A) is carried out with similar frequency and at similar times for each fiscal year. (D) This paragraph shall not apply to assist- ance referred to in paragraph (4).3 (e) Assistance payments for properties in Jeffer- son County, Texas From budget authority made available in ap- propriation Acts for fiscal year 1988, the Sec- retary shall enter into an annual contributions contract for a term of 180 months to obligate sufficient funds to provide assistance payments pursuant to section 8(b)(1) of the United States Housing Act of 1937 [42 U.S.C. 1437f(b)(1)] on be- half of 500 lower income families from budget authority made available for fiscal year 1988, so long as such families occupy properties in Jef- ferson County, Texas. If a lower income family receiving assistance payments pursuant to this subsection ceases to qualify for assistance pay- ments pursuant to the provisions of section 8 of such Act [42 U.S.C. 1437f] or of this subsection during the 180-month term of the annual con- tributions contract, assistance payments shall be made on behalf of another lower income fam- ily who occupies a unit identified in the pre- vious sentence. (Pub. L. 93–383, title II, § 213, Aug. 22, 1974, 88 Stat. 674; Pub. L. 95–128, title II, § 207, Oct. 12, 1977, 91 Stat. 1130; Pub. L. 96–153, title II, § 204, Dec. 21, 1979, 93 Stat. 1108; Pub. L. 96–399, title II, § 202(d), Oct. 8, 1980, 94 Stat. 1629; Pub. L. 97–35, title III, § 321(e), Aug. 13, 1981, 95 Stat. 399; Pub. L. 98–181, title I [title II, § 201(a)(1), (2)], Nov. 30, 1983, 97 Stat. 1175; Pub. L. 98–479, title I, § 102(e), Oct. 17, 1984, 98 Stat. 2222; Pub. L. 100–242, title V, § 522(a), Feb. 5, 1988, 101 Stat. 1938; Pub. L. 101–235, title I, §§ 101(a)–(c), (e), 104(a), Dec. 15, 1989, 103 Stat. 1988–1990, 1998; Pub. L. 101–494, § 5, Oct. 31, 1990, 104 Stat. 1186; Pub. L. 101–625, title V, §§ 556, 576, title VIII, §§ 801(b), 804(e), Nov. 28, 1990, 104 Stat. 4233, 4238, 4303, 4323; Pub. L. 102–389, title II, Oct. 6, 1992, 106 Stat. 1591; Pub. L. 102–550, title I, § 154, Oct. 28, 1992, 106 Stat. 3718; Pub. L. 104–330, title V, § 501(d)(3), Oct. 26, 1996, 110 Stat. 4043; Pub. L. 105–276, title V, §§ 522(b)(2), 551, Oct. 21, 1998, 112 Stat. 2564, 2610.) Editorial Notes REFERENCES IN TEXT The United States Housing Act of 1937, referred to in subsec. (a)(1), 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 this chap- ter (§ 1437 et seq.). Section 17 of the United States Hous- ing Act of 1937, referred to in subsec. (d)(1)(B)(i), which was classified to section 1437o of this title, was repealed by Pub. L. 101–625, title II, § 289(b), Nov. 28, 1990, 104 Stat. 4128. For complete classification of this Act to the Code, see Short Title note under section 1437 of this title and Tables. Section 101 of the Housing and Urban Development Act of 1965, referred to in subsec. (a)(1), is section 101 of Pub. L. 89–117, Aug. 10, 1965, 79 Stat. 451, which enacted section 1701s of Title 12, Banks and Banking, and amended sections 1451 and 1465 of this title. This Act, referred to in subsec. (a)(5), is Pub. L. 93–383, Aug. 22, 1974, 88 Stat. 633, known as the Housing and Community Development Act of 1974. Title I of the Housing and Community Development Act of 1974 is classified principally to chapter 69 (§ 5301 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 5301 of this title and Tables. The Housing and Urban Development Act of 1968, re- ferred to in subsec. (b)(2), is Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 476. Title IV of the Housing and Urban Develop- ment Act of 1968 which was classified principally to chapter 48 (§ 3901 et seq.) of this title, was omitted from the Code pursuant to section 4528 of this title, which terminated the authority to guarantee bonds, deben- tures, notes, or other obligations under such title IV, after Dec. 31, 1970. For complete classification of this Act to the Code, see Short Title note set out under sec- tion 1701 of Title 12, Banks and Banking, and Tables. The Housing and Urban Development Act of 1970, re- ferred to in subsec. (b)(2), is Pub. L. 91–609, Dec. 31, 1970, 84 Stat. 1770. Title VII of the Housing and Urban Devel- opment Act of 1970, known as the Urban Growth and New Community Development Act of 1970, is classified principally to chapter 59 (§ 4501 et seq.) of this title. For complete classification of this Act to the Code, see Short Title of 1970 Amendment note set out under sec- tion 1701 of Title 12. Section 1441a(c) of title 12, referred to in subsec. (d)(1)(A)(i), was repealed by Pub. L. 111–203, title III, § 364(b), July 21, 2010, 124 Stat. 1555. The Cranston-Gonzalez National Affordable Housing Act, referred to in subsec. (d)(1)(A)(ii), is Pub. L. 101–625, Nov. 28, 1990, 104 Stat. 4079. Title II of the Act, known as the ‘‘HOME Investments Partnership Act’’, is classified principally to subchapter II (§ 12721 et seq.) of chapter 130 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 12701 of this title and Tables. Page 4729 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1439 Paragraph (4), referred to in subsec. (d)(4)(D), was re- designated paragraph (3) of subsec. (d) by Pub. L. 105–276, title V, § 551(2)(C), Oct. 21, 1998, 112 Stat. 2610. CODIFICATION Section was enacted as part of the Housing and Com- munity Development Act of 1974, and not as part of the United States Housing Act of 1937 which comprises this chapter. AMENDMENTS 1998—Subsec. (c). Pub. L. 105–276, § 551(1), struck out subsec. (c) which read as follows: ‘‘For areas in which an approved local housing assistance plan is not appli- cable the Secretary shall not approve an application for housing assistance unless he determines that there is a need for such assistance, taking into consideration any applicable State housing plans, and that there is or will be available in the area public facilities and serv- ices adequate to serve the housing proposed to be as- sisted. The Secretary shall afford the unit of general local government in which the assistance is to be pro- vided an opportunity, during a 30-day period following receipt of an application by him, to provide comments or information relevant to the determination required to be made by the Secretary under this subsection.’’ Subsec. (d)(1)(A)(i). Pub. L. 105–276, § 551(2)(A)(i), in- serted at end ‘‘Amounts for tenant-based assistance under section 8(o) of the United States Housing Act of 1937 may not be provided to any public housing agency that has been disqualified from providing such assist- ance.’’ Subsec. (d)(1)(A)(ii). Pub. L. 105–276, § 551(2)(A)(ii), substituted ‘‘8(o)’’ for ‘‘8(b)(1)’’ in two places. Subsec. (d)(1)(B)(i). Pub. L. 105–276, § 522(b)(2), which directed the amendment of subsec. (d)(1)(B)(ii), by striking out ‘‘or 14’’, was executed by striking out ‘‘or 14’’ after ‘‘9’’ in subsec. (d)(1)(B)(i) to reflect the prob- able intent of Congress. Subsec. (d)(2) to (5). Pub. L. 105–276, § 551(2)(B), (C), re- designated pars. (3) to (5) as (2) to (4), respectively, and struck out former par. (2) which read as follows: ‘‘Not later than sixty days after approval in an appropriation Act, the Secretary shall allocate from the amounts available for use in nonmetropolitan areas an amount of authority for assistance under section 8(d) of the United States Housing Act of 1937 determined in con- sultation with the Secretary of Agriculture for use in connection with section 1490m of this title during the fiscal year for which such authority is approved. The amount of assistance allocated to nonmetropolitan areas pursuant to this section in any fiscal year shall not be less than 20 nor more than 25 per centum of the total amount of the assistance that is subject to alloca- tion under paragraph (1)(A).’’ 1996—Subsec. (d)(1)(B)(ii). Pub. L. 104–330 substituted ‘‘public housing’’ for ‘‘public and Indian housing’’. 1992—Subsec. (e). Pub. L. 102–389 and Pub. L. 102–550 amended subsec. (e) identically, substituting ‘‘Jefferson County, Texas’’ for ‘‘the Park Central New Community Project or in adjacent areas that are recognized by the unit of general local government in which such Project is located as being included within the Park Central New Town In Town Project’’. 1990—Subsec. (a)(1). Pub. L. 101–625, § 801(b), struck out ‘‘section 202 of the Housing Act of 1959’’ before ‘‘, if the unit’’. Subsec. (a)(5). Pub. L. 101–625, § 576, inserted at end ‘‘In developing a housing assistance plan under this paragraph a unit of general local government shall con- sult with local public agencies involved in providing for the welfare of children to determine the housing needs of (A) families identified by the agencies as having a lack of adequate housing that is a primary factor in the imminent placement of a child in foster care or in pre- venting the discharge of a child from foster care and re- unification with his or her family; and (B) children who, upon discharge of the child from foster care, can- not return to their family or extended family and for which adoption is not available. The unit of general local government shall include in the housing assist- ance plan needs and goals with respect to such families and children.’’ Subsec. (d)(1)(A). Pub. L. 101–625, § 556, designated ex- isting provisions as cl. (i) and added cl. (ii). Pub. L. 101–494 inserted after first sentence ‘‘The Sec- retary may allocate assistance under the preceding sentence in such a manner that each State shall receive not less than one-half of one percent of the amount of funds available for each program referred to in sub- section (a)(1) in each fiscal year.’’ Subsec. (d)(1)(A)(i). Pub. L. 101–625, § 804(e), which di- rected amendment of subpar. (A) by inserting after the period at end ‘‘The preceding sentence shall not apply to projects acquired from the Resolution Trust Cor- poration under section 1441a(c) of title 12.’’, was exe- cuted by making the insertion after the period at end of cl. (i), to reflect the probable intent of Congress and the intervening amendment by Pub. L. 101–625, § 556. See above. 1989—Subsec. (a)(1). Pub. L. 101–235, § 101(e), struck out ‘‘section 235 or 236 of the National Housing Act,’’ before ‘‘section 101 of the Housing and Urban Develop- ment Act of 1965’’. Subsec. (d)(1). Pub. L. 101–235, § 101(a), amended par. (1) generally. Prior to amendment, par. (1) read as fol- lows: ‘‘The Secretary shall allocate assistance referred to in subsection (a) of this section (other than assist- ance approved in appropriation Acts for use under sec- tions 9, 14, and 17 of the United States Housing Act of 1937) the first time it is available for reservation on the basis of a formula which is contained in a regulation prescribed by the Secretary, and which is based on the relative needs of different States, areas, and commu- nities as reflected in data as to population, poverty, housing overcrowding, housing vacancies, amount of substandard housing, and other objectively measurable conditions specified in such regulation. Any amounts allocated to a State or areas or communities within a State which are not likely to be utilized within a fiscal year shall not be reallocated for use in another State unless the Secretary determines that other areas or communities within the same State cannot utilize the amounts within that same fiscal year.’’ Subsec. (d)(2). Pub. L. 101–235, § 101(b), substituted ‘‘of the assistance that is subject to allocation under para- graph (1)(A)’’ for ‘‘of such assistance’’. Subsec. (d)(4). Pub. L. 101–235, § 104(a), amended par. (4) generally. Prior to amendment, par. (4) read as fol- lows: ‘‘Notwithstanding any other provision of law, with respect to fiscal years beginning after September 30, 1981, the Secretary of Housing and Urban Develop- ment may not retain more than 15 per centum of the fi- nancial assistance which becomes available under pro- grams described in subsection (a)(1) of this section dur- ing any fiscal year. Any such financial assistance which is retained shall be available for subsequent allo- cation to specific areas and communities, and may only be used for— ‘‘(A) unforeseeable housing needs, especially those brought on by natural disasters or special relocation requirements; ‘‘(B) support for the needs of the handicapped or for minority enterprise; ‘‘(C) providing for assisted housing as a result of the settlement of litigation; ‘‘(D) small research and demonstration projects; ‘‘(E) lower-income housing needs described in hous- ing assistance plans, including activities carried out under areawide housing opportunity plans; and ‘‘(F) innovative housing programs or alternative methods for meeting lower-income housing needs ap- proved by the Secretary, including assistance for in- frastructure in connection with the Indian Housing Program.’’ Subsec. (d)(5). Pub. L. 101–235, § 101(c), added par. (5). 1988—Subsec. (e). Pub. L. 100–242 added subsec. (e). 1984—Subsec. (d)(2). Pub. L. 98–479 substituted ‘‘sec- tion 1490m of this title’’ for ‘‘section 1490l of this title’’. Page 4730 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1440 1983—Subsec. (a)(1). Pub. L. 98–181, § 201(a)(1), inserted provision following subpar. (B) requiring that funds be utilized to meet the needs and goals identified in the unit of local government’s housing assistance plan. Subsec. (d)(1). Pub. L. 98–181, § 201(a)(2), amended par. (1) generally, inserting provision respecting assistance approved in appropriation Acts for sections 9 and 17 of the United States Housing Act of 1937 uses, requiring allocation of assistance to be based on a formula con- tained in a regulation, making the relative needs provi- sion applicable to different States, striking out re- quirement that Secretary assure, in carrying out na- tional housing and community development objectives, that funds available for housing assistance programs be allocated or reserved in accordance with goals de- scribed in approved housing assistance plans, and strik- ing out provision respecting allocation of funds for non- metropolitan areas, which was reenacted as last sen- tence of par. (2). Subsec. (d)(2). Pub. L. 98–181, § 201(a)(2), amended par. (2) generally, inserting provision respecting allocation of nonmetropolitan area funds for use in connection with section 1490l of this title; reenacting as second sentence provision respecting amount of funds allo- cated for nonmetropolitan areas, which formerly con- stituted last sentence of par. (1); and striking out former provision respecting reservation of housing as- sistance funds for new community developments ap- proved under title IV of the Housing and Urban Devel- opment Act of 1968 and title VII of the Housing and Urban Development Act of 1970 for persons of low- and moderate-income. 1981—Subsec. (d)(4). Pub. L. 97–35 added par. (4). 1980—Subsec. (d)(1). Pub. L. 96–399 substituted ‘‘car- rying out section 14 of such Act’’ for ‘‘modernization of low-income housing projects’’. 1979—Subsec. (d)(1). Pub. L. 96–153 inserted provisions limiting allocation of assistance other than that ap- proved in appropriation acts for use on and after Oct. 1, 1979 for modernization of low-income housing projects and inserted provision that any amounts allo- cated to a State or to areas or communities within a State which are not likely to be utilized within a fiscal year shall not be reallocated for use in another State unless the Secretary determines that other areas or communities within the same State cannot utilize the amounts in accordance with the appropriate housing assistance plans within that fiscal year. 1977—Subsec. (d)(1). Pub. L. 95–128 inserted provision requiring the Secretary to assure that funds available for subsec. (a) housing assistance programs shall be al- located or reserved in accordance with goals described in local, State, or other housing assistance plans ap- proved by the Secretary pursuant to section 5304 of this title and shall be utilized to meet needs reflected in data referred to in the preceding sentence. 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 1990 AMENDMENT Amendment by section 801(b) of Pub. L. 101–625 effec- tive Oct. 1, 1991, with respect to projects approved on or after such date, and subject to issuance of regulations, see section 801(c) of Pub. L. 101–625, set out as a note under section 1701q of Title 12, Banks and Banking. Amendment by section 801(b) of Pub. L. 101–625 deemed enacted Nov. 5, 1990, see title II of Pub. L. 101–507, set out as a note under section 1701q of Title 12. EFFECTIVE DATE OF 1989 AMENDMENT Pub. L. 101–235, title I, § 104(b), Dec. 15, 1989, 103 Stat. 1998, provided that: ‘‘Any assistance made available under section 213(d)(4) of the Housing and Community Development Act of 1974 [42 U.S.C. 1439(d)(4)] before Oc- tober 1, 1990, or pursuant to a commitment for such as- sistance entered into before such date, shall be gov- erned by the provisions of section 213(d)(4) as such sec- tion existed before the date of the enactment of this Act [Dec. 15, 1989].’’ 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. § 1440. State housing finance and development agencies (a) Statement of purpose; participation by pri- vate and nonprofit developers in activities assisted It is the purpose of this section to encourage the formation and effective operation of State housing finance agencies and State development agencies which have authority to finance, to as- sist in carrying out, or to carry out activities designed to (1) provide housing and related fa- cilities through land acquisition, construction, or rehabilitation, for persons and families of low, moderate, and middle income, (2) promote the sound growth and development of neighbor- hoods through the revitalization of slum and blighted areas, (3) increase and improve employ- ment opportunities for the unemployed and un- deremployed through the development and rede- velopment of industrial, manufacturing, and commercial facilities, or (4) implement the de- velopment aspects of State land use and preser- vation policies, including the advance acquisi- tion of land where it is consistent with such policies. The Secretary of Housing and Urban Development shall encourage maximum partici- pation by private and nonprofit developers in ac- tivities assisted under this section. (b) Determination of eligibility for assistance; definitions (1) A State housing finance or State develop- ment agency is eligible for assistance under this section only if the Secretary determines that it is fully empowered and has adequate authority to at least carry out or assist in carrying out the purposes specified in clause (1) of subsection (a). (2) For the purpose of this section— (A) the term ‘‘State housing finance or State development agency’’ means any public body or agency, publicly sponsored corporation, or instrumentality of one or more States which is designated by the Governor (or Governors in the case of an interstate development agency) for purposes of this section; (B) the term ‘‘State’’ means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or any terri- tory or possession of the United States; and (C) the term ‘‘Secretary’’ means the Sec- retary of Housing and Urban Development.