42 U.S.C. § 12747 — Allocation of resources

Page 8461 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 12747 1 See 1992 Amendment note below. (ii) reallocate the remainder by formula in accordance with section 12747(b) of this title. (B) Local If a unit of general local government has failed to meet the requirements and is lo- cated in a State that is a participating juris- diction, the Secretary shall reallocate to the State any funds reserved for the locality, with preference going to the provision of af- fordable housing within the locality. (C) Direct reallocation If a unit of general local government has failed to meet the requirements and is lo- cated in a State that is not a participating jurisdiction, the Secretary shall— (i) make any funds reserved for the local- ity available for use within the State by direct reallocation among units of general local government and community housing development organizations, insofar as ap- provable applications meeting the selec- tion criteria under section 12747(c) of this title are received within 12 months after the funds become available for the direct reallocation with priority going to appli- cations for affordable housing within the locality, and (ii) reallocate the remainder in accord- ance with section 12747(b) of this title. (D) Certain jurisdictions deemed to be par- ticipating jurisdictions If a State or unit of general local govern- ment is meeting the requirements of para- graphs (3), (4), and (5), it shall be deemed to be a participating jurisdiction for purposes of reallocation under this paragraph. (7) Designation The Secretary shall designate an eligible ju- risdiction to be a participating jurisdiction as soon as its comprehensive housing afford- ability strategy is approved in accordance with section 12705 of this title. (8) Continuous designation Once a State or unit of general local govern- ment is designated a participating jurisdic- tion, it shall remain a participating jurisdic- tion for subsequent fiscal years, except as pro- vided in paragraph (9). The provisions of para- graphs (3) through (6) shall not apply to par- ticipating jurisdictions. (9) Revocation The Secretary may revoke a jurisdiction’s designation as a participating jurisdiction if— (A) the Secretary finds, after reasonable notice and opportunity for hearing, that the jurisdiction is unwilling or unable to carry out the provisions of this subchapter, or (B) the jurisdiction’s allocation falls below $750,000 for 3 consecutive years, below $625,000 for 2 consecutive years, or the juris- diction does not receive a formula allocation of $500,000 or more in any 1 year, except as provided in paragraph (10). If a jurisdiction’s designation as a partici- pating jurisdiction is revoked, any remaining line of credit in the jurisdiction’s HOME In- vestment Trust Fund established under sec- tion 12748 of this title shall be reallocated in accordance with paragraph (6) of this section. (10) Threshold reduction If the amount appropriated pursuant to sec- tion 12724 of this title for any fiscal year is less than $1,500,000,000, then this section shall be applied during that year— (A) by substituting ‘‘$500,000’’ for ‘‘$750,000’’ both places it appears in para- graph (3); and (B) by substituting ‘‘$500,000’’, ‘‘$410,000’’, and ‘‘$335,000’’ for ‘‘$750,000’’, ‘‘$625,000’’, and ‘‘$500,000’’, respectively, where they appear in paragraph (9). (Pub. L. 101–625, title II, § 216, Nov. 28, 1990, 104 Stat. 4103; Pub. L. 102–550, title II, § 202(a), Oct. 28, 1992, 106 Stat. 3751.) Editorial Notes AMENDMENTS 1992—Par. (3)(A). Pub. L. 102–550, § 202(a)(1), sub- stituted ‘‘Except as provided in paragraph (10), a juris- diction’’ for ‘‘A jurisdiction’’. Par. (9)(B). Pub. L. 102–550, § 202(a)(2), inserted ‘‘, except as provided in paragraph (10)’’ after ‘‘in any 1 year’’. Par. (10). Pub. L. 102–550, § 202(a)(3), added par. (10). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1992 AMENDMENT Amendment by Pub. L. 102–550 applicable to unex- pended funds allocated under subchapter II of this chapter in fiscal year 1992, except as otherwise specifi- cally provided, see section 223 of Pub. L. 102–550, set out as a note under section 12704 of this title. APPLICABILITY OF GRANT THRESHOLDS Pub. L. 102–550, title II, § 202(c), Oct. 28, 1992, 106 Stat. 3752, provided that: ‘‘Notwithstanding any other provi- sion of law, the grant thresholds provided for in section 216 [42 U.S.C. 12746], as amended by this section, and the grant thresholds provided for in section 217(b) of the Cranston-Gonzalez National Affordable Housing Act [42 U.S.C. 12747(b)], as amended by this section, shall apply.’’ § 12747. Allocation of resources (a) In general (1) States and units of general local govern- ment After reserving amounts under paragraph (3) for the insular areas, the Secretary shall allo- cate funds approved in an appropriation Act to carry out this subchapter by formula as pro- vided in subsection (b). Of the funds made available under the preceding sentence, the Secretary shall initially allocate 60 percent among units of general local government and 40 percent among States. (2) Repealed. Pub. L. 104–330, title V, § 505(a)(1)(B), Oct. 26, 1996, 110 Stat. 4044 (3) 1 Insular areas For each fiscal year, of any amounts ap- proved in appropriation Acts to carry out this subchapter, the Secretary shall reserve for Page 8462 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 12747 2 So in original. Probably should be ‘‘by’’. 3 So in original. Probably should be ‘‘jurisdictions’’. grants to the insular areas the greater of (A) $750,000, or (B) 0.2 percent of the amounts ap- propriated under such Acts. The Secretary shall provide for the distribution of amounts reserved under this paragraph among the insu- lar areas pursuant to specific criteria for such distribution, which shall be contained in a reg- ulation issued by the Secretary. (b) Formula allocation (1) In general (A) Basic formula The Secretary shall establish in 2 regula- tion an allocation formula that reflects each jurisdiction’s share of total need among eli- gible jurisdiction 3 for an increased supply of affordable housing for very low-income and low-income families of different size, as identified by objective measures of inad- equate housing supply, substandard housing, the number of low-income families in hous- ing likely to be in need of rehabilitation, the costs of producing housing, poverty, and the relative fiscal incapacity of the jurisdiction to carry out housing activities eligible under section 12742 of this title without Federal as- sistance. Allocation among units of general local government shall take into account the housing needs of metropolitan cities, urban counties, and approved consortia of units of general local government. (B) Source of data The data to be used for formula allocation of funds within a fiscal year shall be data ob- tained from a standard source that are avail- able to the Secretary 90 days prior to the be- ginning of that fiscal year. (C) Use of basic formula The basic formula established under sub- paragraph (A) shall be used for all formula allocations and reallocations provided for in this part. (D) Weights When allocation is made among States, the Secretary shall apply the formula in subparagraph (A) giving 20 percent weight to measures of need for the whole State and 80 percent weight to measures of need among units of general local government that are not receiving an allocation under section 12746(1) of this title. (E) Adjustments In developing the basic formula in sub- paragraph (A), the Secretary shall (i) avoid the allocation of an excessively large share of amounts made available under this part to any one State or unit of general local government, and (ii) take into account the need for a geographic distribution of amounts made available under this part that appropriately reflects the housing need in each region of the Nation. (F) Consultation The Secretary shall develop the formula in subparagraph (A) in ongoing consultation with (i) the Subcommittee on Housing and Urban Affairs of the Committee on Banking, Housing, and Urban Affairs of the Senate, (ii) the Subcommittee on Housing and Com- munity Development of the Committee on Banking, Finance and Urban Affairs of the House of Representatives, and (iii) organiza- tions representing States and units of gen- eral local government. Not less than 60 days prior to publishing a formula for comment, the Secretary shall submit to the Com- mittee on Banking, Housing, and Urban Af- fairs of the Senate and the Committee on Banking, Finance and Urban Affairs of the House of Representatives a copy of the for- mula the Secretary intends to propose. (2) Minimum State allocation (A) In general If the formula, when applied to funds ap- proved under this section in appropriations Acts for a fiscal year, would allocate less than $3,000,000 to any State, the allocation for such State shall be $3,000,000, and the in- crease shall be deducted pro rata from the allocations of other States. (B) Increased minimum allocation If no unit of general local government within a State receives an allocation under paragraph (3), the State’s allocation shall be increased by $500,000. Priority for use of such increased allocation shall go to the provi- sion of affordable housing within the bound- aries of metropolitan cities, urban counties, and approved consortia within the State, based on the need for such funds. The in- creased allocation to a State under the pre- ceding sentence shall be derived by a pro rata deduction from the allocations to units of general local government in all States, except that such pro rata deduction shall not reduce the allocation of any unit of gen- eral local government below $500,000. (3) Minimum local allocation The Secretary shall allocate funds available for formula allocation to units of general local government that, as of the end of the previous fiscal year, qualified as metropolitan cities, urban counties, and consortia approved by the Secretary in accordance with section 12746(2) of this title so that, when all such funds are initially allocated by formula, jurisdictions that are allocated an amount of $500,000 or more, and participating jurisdictions (other than consortia that fail to renew the member- ship of all of their member jurisdictions) that are allocated an amount less than $500,000, shall receive an allocation. Prior to announc- ing initial allocations, the Secretary shall suc- cessively recalculate the allocations to juris- dictions under this subsection so that the maximum number of such jurisdictions can re- ceive initial allocations, except as provided in paragraph (4). (4) Threshold reduction If the amount appropriated pursuant to sec- tion 12724 of this title for any fiscal year is less than $1,500,000,000, then this section shall be applied during that year by substituting Page 8463 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 12747 ‘‘$335,000’’ for ‘‘$500,000’’ where it appears in paragraph (3). (c) Criteria for direct reallocation The Secretary shall establish objective cri- teria for making direct reallocations to any par- ticipating jurisdiction and other eligible enti- ties. A jurisdiction shall be eligible for a direct reallocation under this subsection only if the ju- risdiction, in a form acceptable to the Sec- retary, submits an application that dem- onstrates to the satisfaction of the Secretary that the jurisdiction is engaged, or has made good faith efforts to engage, in cooperative ef- forts between the State and appropriate partici- pating jurisdictions within the State to develop, coordinate, and implement housing strategies under this subchapter. The Secretary shall by regulation establish objective selection criteria for such direct reallocations, which criteria shall take into account— (1) the applicant’s demonstrated commit- ment to expand the supply of affordable rental housing, including units developed by public housing agencies, as indicated by the addi- tional number of units of affordable housing made available through production or reha- bilitation within the previous 2 years, making adjustment for regional variations in con- struction and rehabilitation costs and giving special consideration to the number of addi- tional units made available under this sub- chapter through production or rehabilitation, including units developed by public housing agencies, in relation to the amounts made available under this program; (2) the applicant’s actions that— (A) direct funds made available under this part to benefit very low-income families, with a range of incomes, in amounts that ex- ceed the income targeting requirements of section 12744 of this title, with extra consid- eration given for activities that expand the supply of affordable housing for very low-in- come families whose incomes do not exceed 30 percent of the median family income for the area, as determined by the Secretary; (B) apply the tenant selection preference categories applicable under section 1437f of this title to the selection of tenants for housing assisted under this part; (C) provide matching resources in excess of funds required under section 12750 of this title; and (D) stimulate a high degree of investment and participation in development by the pri- vate sector, including nonprofit organiza- tions; and (3) the degree to which the applicant is pur- suing policies that— (A) make existing housing more afford- able; (B) remove or ameliorate any negative ef- fects that public policies identified by the applicant pursuant to section 12705(b)(4) of this title may have on the cost of housing or the incentives to develop, maintain, or im- prove affordable housing in the jurisdiction; (C) preserve the affordability of privately- owned housing that is vulnerable to conver- sion, demolition, disinvestment, or abandon- ment; (D) increase the supply of housing that is affordable to very low-income and low-in- come persons, particularly in areas that are accessible to expanding job opportunities; and (E) remedy the effects of discrimination and improve housing opportunities for dis- advantaged minorities. (d) Reallocations (1) In general The Secretary shall make any reallocations periodically throughout each fiscal year so as to ensure that all funds to be reallocated are made available to eligible jurisdictions as soon as possible, consistent with orderly pro- gram administration. Jurisdictions eligible for such reallocations shall include participating jurisdictions and jurisdictions meeting the re- quirements of paragraphs (3), (4), and (5) of section 12746 of this title. (2) Commitments The Secretary shall establish procedures ac- cording to which participating jurisdictions may make commitments to invest funds made available under this section. Such procedures shall provide for appropriate stages of com- mitment of funds to a project from initial res- ervation through binding commitment. Not- withstanding any other provision of this sub- chapter, funds that the Secretary determines are needed to fulfill binding commitments shall not be available for reallocation. (3) Limitation Unless otherwise specified in this part, any reallocation of funds from a State shall be made only among all participating States, and any reallocation of funds from units of general local government shall be made only among all participating units of general local govern- ment. (Pub. L. 101–625, title II, § 217, Nov. 28, 1990, 104 Stat. 4105; Pub. L. 102–229, title I, Dec. 12, 1991, 105 Stat. 1709; Pub. L. 102–230, § 1, Dec. 12, 1991, 105 Stat. 1720; Pub. L. 102–273, § 1, Apr. 21, 1992, 106 Stat. 113; Pub. L. 102–389, title II, Oct. 6, 1992, 106 Stat. 1581; Pub. L. 102–550, title II, §§ 202(b), 203(b), 211(a)(2), Oct. 28, 1992, 106 Stat. 3751, 3752, 3756; Pub. L. 104–330, title V, § 505(a)(1), Oct. 26, 1996, 110 Stat. 4044; Pub. L. 105–65, title II, § 214, Oct. 27, 1997, 111 Stat. 1366.) Editorial Notes AMENDMENTS 1997—Subsec. (b)(3). Pub. L. 105–65, in first sentence, substituted ‘‘jurisdictions that are allocated an amount of $500,000 or more, and participating jurisdictions (other than consortia that fail to renew the member- ship of all of their member jurisdictions) that are allo- cated an amount less than $500,000, shall receive an al- location’’ for ‘‘only those jurisdictions that are allo- cated an amount of $500,000 or greater shall receive an allocation’’. 1996—Subsec. (a)(1). Pub. L. 104–330, § 505(a)(1)(A), struck out ‘‘reserving amounts under paragraph (2) for Indian tribes and after’’ after ‘‘After’’. Subsec. (a)(2). Pub. L. 104–330, § 505(a)(1)(B), struck out heading and text of par. (2). Text read as follows: ‘‘For each fiscal year, of the amount approved in an ap- propriations Act to carry out this subchapter, the Sec- Page 8464 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 12747 retary shall reserve for grants to Indian tribes 1 per- cent of the amount appropriated under such section. The Secretary shall provide for distribution of amounts under this paragraph to Indian tribes on the basis of a competition conducted pursuant to specific criteria for the selection of Indian tribes to receive such amounts. The criteria shall be contained in a regulation promul- gated by the Secretary after notice and public com- ment.’’ 1992—Subsec. (a)(1). Pub. L. 102–550, § 211(a)(2)(A), added first sentence and struck out former first sen- tence which read as follows: ‘‘After reserving amounts for Indian tribes as required by paragraph (2) of this subsection and after reserving amounts for the insular areas under paragraph (3), the Secretary shall allocate funds approved in an appropriations Act to carry out this subchapter by formula as provided in subsection (b) of this section.’’ Pub. L. 102–389 made identical amendment to those made by Pub. L. 102–229 and Pub. L. 102–230, § 1(1). See 1991 Amendment note below. Subsec. (a)(3). Pub. L. 102–550, § 211(a)(2)(D), and Pub. L. 102–389 both added new pars. (3) related to insular areas. The text reflects the par. (3) added by Pub. L. 102–550. The par. (3) added by Pub. L. 102–389 read as fol- lows: ‘‘For each fiscal year, of any amounts approved in appropriations Acts to carry out this subchapter, the Secretary shall reserve for grants to the insular areas the greater of (A) $750,000, or (B) 0.2 percent of the amounts appropriated under such Acts. The Secretary shall provide for the distribution of amounts reserved under this paragraph among the insular areas pursuant to specific criteria for such distribution. The criteria shall be contained in a regulation promulgated by the Secretary after notice and public comment.’’ Pub. L. 102–550, § 211(a)(2)(C), struck out par. (3), as added by Pub. L. 102–230, § 1(2), which read as follows: ‘‘(A) IN GENERAL.—For each fiscal year, of any amount approved in an appropriations Act to carry out this subchapter, the Secretary shall reserve for grants to the insular areas an amount that reflects— ‘‘(i) their share of the total population of eligible jurisdictions; and ‘‘(ii) any adjustments that the Secretary deter- mines are reasonable in light of available data that are related to factors set forth in subsection (b)(1)(B) of this section. ‘‘(B) SPECIFIC CRITERIA.—The Secretary shall provide for the distribution of amounts reserved under this paragraph among the insular areas in accordance with specific criteria to be set forth in a regulation promul- gated by the Secretary after notice and public com- ment. ‘‘(C) TRANSITIONAL PROVISIONS.—For fiscal year 1992, the reservation for insular areas specified in subpara- graph (A) shall be made from any funds which become available for reallocation in accordance with the provi- sions of section 12746(6)(A) of this title.’’ Pub. L. 102–550, § 211(a)(2)(B), struck out par. (3), as added by Pub. L. 102–229, which read as follows: ‘‘For each fiscal year, of any amounts approved in appropria- tions Acts to carry out this subchapter, the Secretary shall reserve for grants to the insular areas the greater of (A) $750,000, or (B) 0.5 percent of the amounts appro- priated under such Acts. The Secretary shall provide for the distribution of amounts reserved under this paragraph among the insular areas pursuant to specific criteria for such distribution. The criteria shall be con- tained in a regulation promulgated by the Secretary after notice and public comment.’’ Subsec. (b)(1)(A). Pub. L. 102–550, § 203(b)(1), (6), redes- ignated subpar. (B) as (A) and struck out former sub- par. (A) which provided for a formula for allocation of funds for production of affordable rental housing through new construction or substantial rehabilitation. Pub. L. 102–273 added cl. (iii) reading as follows: ‘‘Not- withstanding clauses (i) and (ii), any jurisdiction re- ceiving amounts made available under such clause may, at the discretion of the jurisdiction, use such amounts for other eligible uses in accordance with sec- tion 12742 of this title if the jurisdiction determines that such use will better meet the housing needs within the jurisdiction. This clause shall be effective only with respect to funds provided under the Departments of Veterans Affairs and Housing and Urban Develop- ment, and Independent Agencies Appropriations Act, 1992 (Public Law 102–139; 105 Stat. 744), which suspends the requirement of contributions by participating ju- risdictions, and shall become ineffective if such re- quirement is reimposed.’’ Subsec. (b)(1)(B), (C). Pub. L. 102–550, § 203(b)(6), redes- ignated subpars. (C) and (D) as (B) and (C), respectively. Former subpar. (B) redesignated (A). Subsec. (b)(1)(D). Pub. L. 102–550, § 203(b)(6), redesig- nated subpar. (E) as (D). Former subpar. (D) redesig- nated (C). Pub. L. 102–550, § 203(b)(2), substituted ‘‘The basic for- mula established under subparagraph (A)’’ for ‘‘Except as provided in subparagraph (A), the basic formula es- tablished under subparagraph (B)’’. Subsec. (b)(1)(E). Pub. L. 102–550, § 203(b)(6), redesig- nated subpar. (F) as (E). Former subpar. (E) redesig- nated (D). Pub. L. 102–550, § 203(b)(3), substituted ‘‘formula in subparagraph (A)’’ for ‘‘formulas in subparagraph (B)’’. Subsec. (b)(1)(F). Pub. L. 102–550, § 203(b)(6), redesig- nated subpar. (G) as (F). Former subpar. (F) redesig- nated (E). Pub. L. 102–550, § 203(b)(4), substituted ‘‘basic formula in subparagraph (A)’’ for ‘‘basic formula in subpara- graph (B)’’ and struck out at end ‘‘If a jurisdiction re- ceives an allocation under subparagraph (A), the Sec- retary shall make such adjustments in the jurisdic- tion’s allocation under the formula in subparagraph (B) as may be necessary to ensure that the combined effect of the formulas in subparagraphs (A) and (B) does not reduce the allocation of any jurisdiction below the allo- cation it would receive if allocations were made accord- ing to the formula under subparagraph (B) alone.’’ Subsec. (b)(1)(G). Pub. L. 102–550, § 203(b)(6), redesig- nated subpar. (G) as (F). Pub. L. 102–550, § 203(b)(5), substituted ‘‘formula in subparagraph (A)’’ for ‘‘formulas in subparagraphs (A) and (B)’’. Subsec. (b)(3). Pub. L. 102–550, § 202(b)(1), inserted be- fore period at end ‘‘, except as provided in paragraph (4)’’. Subsec. (b)(4). Pub. L. 102–550, § 202(b)(2), added par. (4). 1991—Subsec. (a)(1). Pub. L. 102–229 and Pub. L. 102–230, § 1(1), amended par. (1) identically, inserting be- fore first comma ‘‘and after reserving amounts for the insular areas under paragraph (3)’’. Subsec. (a)(3). Pub. L. 102–229 and Pub. L. 102–230, § 1(2), which were enacted on the same day, both added new pars. (3) relating to insular areas. Statutory Notes and Related Subsidiaries CHANGE OF NAME Committee on Banking, Finance and Urban Affairs of House of Representatives treated as referring to Com- mittee on Banking and Financial Services of House of Representatives by section 1(a) of Pub. L. 104–14, set out as a note preceding section 21 of Title 2, The Con- gress. Committee on Banking and Financial Services of House of Representatives abolished and replaced by Committee on Financial Services of House of Rep- resentatives, and jurisdiction over matters relating to securities and exchanges and insurance generally trans- ferred from Committee on Energy and Commerce of House of Representatives by House Resolution No. 5, One Hundred Seventh Congress, Jan. 3, 2001. 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. Page 8465 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 12749 1 So in original. Probably should be section ‘‘12753’’. Pub. L. 104–330, title V, § 505(b), Oct. 26, 1996, 110 Stat. 4044, provided that: ‘‘The amendments under subsection (a) [amending this section and section 12838 of this title] shall apply with respect to amounts made avail- able for assistance under title II of the Cranston-Gon- zalez National Affordable Housing Act [42 U.S.C. 12721 et seq.] for fiscal year 1998 and fiscal years thereafter.’’ EFFECTIVE DATE OF 1992 AMENDMENT Amendment by section 211(a)(2) of Pub. L. 102–550 ap- plicable with respect to fiscal year 1993 and thereafter, see section 211(b) of Pub. L. 102–550, set out as a note under section 12704 of this title. Amendment by sections 202(b) and 203(b) of Pub. L. 102–550 applicable to unexpended funds allocated under subchapter II of this chapter in fiscal year 1992, except as otherwise specifically provided, see section 223 of Pub. L. 102–550, set out as a note under section 12704 of this title. APPLICABILITY OF GRANT THRESHOLDS Grant thresholds provided for in subsec. (b) of this section as amended by Pub. L. 102–550 to apply notwith- standing any other provision of law, see section 202(c) of Pub. L. 102–550, set out as a note under section 12746 of this title. EXPEDITED ISSUANCE OF REGULATION Pub. L. 102–550, title II, § 211(a)(3), Oct. 28, 1992, 106 Stat. 3757, provided that: ‘‘The regulation referred to in the amendment made by paragraph (2)(D) [amending this section] shall take effect not later than the expira- tion of the 90-day period beginning on the date of the enactment of this Act [Oct. 28, 1992]. The regulation shall not be subject to the requirements of subsections (b) and (c) of section 553 of title 5, United States Code, or section 7(o) of the Department of Housing and Urban Development Act [42 U.S.C. 3535(o)].’’ § 12748. HOME Investment Trust Funds (a) Establishment The Secretary shall establish for each partici- pating jurisdiction a HOME Investment Trust Fund, which shall be an account (or accounts as provided in section 12749(c) of this title) for use solely to invest in affordable housing within the participating jurisdiction’s boundaries or within the boundaries of contiguous jurisdictions in joint projects which serve residents from both jurisdictions in accordance with the provisions of this part. (b) Line of credit The Secretary shall establish a line of credit in the HOME Investment Trust Fund of each participating jurisdiction, which line of credit shall include— (1) funds allocated or reallocated to the par- ticipating jurisdiction under section 12747 of this title, and (2) any payment or repayment made pursu- ant to section 12749 of this title. (c) Reductions A participating jurisdiction’s line of credit shall be reduced by— (1) funds drawn from the HOME Investment Trust Fund by the participating jurisdiction, (2) funds expiring under subsection (g), and (3) any penalties assessed by the Secretary under section 12754 1 of this title. (d) Certification A participating jurisdiction may draw funds from its HOME Investment Trust Fund, but not to exceed the remaining line of credit, only after providing certification that the funds shall be used pursuant to the participating jurisdiction’s approved housing strategy and in compliance with all requirements of this subchapter. When such certification is received, the Secretary shall immediately disburse such funds in accord- ance with the form of the assistance determined by the participating jurisdiction. (e) Investment within 15 days The participating jurisdiction shall, not later than 15 days after funds are drawn from the ju- risdiction’s HOME Investment Trust Fund, in- vest such funds, together with any interest earned thereon, in the affordable housing for which the funds were withdrawn. (f) No interest or fees The Secretary shall not charge any interest or levy any other fee with regard to funds in a HOME Investment Trust Fund. (g) Expiration of right to draw funds If any funds becoming available to a partici- pating jurisdiction under this subchapter are not placed under binding commitment to afford- able housing within 24 months after the last day of the month in which such funds are deposited in the jurisdiction’s HOME Investment Trust Fund, the jurisdiction’s right to draw such funds from the HOME Investment Trust Fund shall ex- pire. The Secretary shall reduce the line of cred- it in the participating jurisdiction’s HOME In- vestment Trust Fund by the expiring amount and shall reallocate the funds by formula in ac- cordance with section 12747(d) of this title. (h) Administrative provision The Secretary shall keep each participating jurisdiction informed of the status of its HOME Investment Trust Fund, including the status of amounts under various stages of commitment. (Pub. L. 101–625, title II, § 218, Nov. 28, 1990, 104 Stat. 4109; Pub. L. 102–550, title II, §§ 203(c), 221, Oct. 28, 1992, 106 Stat. 3752, 3762.) Editorial Notes AMENDMENTS 1992—Subsec. (a). Pub. L. 102–550, § 221, inserted ‘‘or within the boundaries of contiguous jurisdictions in joint projects which serve residents from both jurisdic- tions’’ after ‘‘boundaries’’. Subsec. (g). Pub. L. 102–550, § 203(c), substituted ‘‘If’’ for ‘‘Except as provided in section 12747(b)(1)(A)(ii) of this title, if’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1992 AMENDMENT Amendment by Pub. L. 102–550 applicable to unex- pended funds allocated under subchapter II of this chapter in fiscal year 1992, except as otherwise specifi- cally provided, see section 223 of Pub. L. 102–550, set out as a note under section 12704 of this title. § 12749. Repayment of investment (a) In general Any repayment of funds drawn from a jurisdic- tion’s HOME Investment Trust Fund, and any payment of interest or other return on the in- vestment of such funds, shall be deposited in