42 U.S.C. § 12746 — Participation by States and local govern-

Page 8460 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 12746 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. HOME INVESTMENT PARTNERSHIPS PROGRAM Pub. L. 114–113, div. L, title II, Dec. 18, 2015, 129 Stat. 2878, provided in part: ‘‘That with respect to funds made available under this heading [HOME INVESTMENT PARTNERSHIPS PROGRAM, see 129 Stat. 2878] pursuant to such Act [probably means title II of Pub. L. 101–625] and funds provided in prior and subsequent appropriations acts that were or are used by community land trusts for the development of affordable homeownership hous- ing pursuant to section 215(b) of such Act [42 U.S.C. 12745(b)], such community land trusts, notwithstanding section 215(b)(3)(A) of such Act [42 U.S.C. 12745(b)(3)(A)], may hold and exercise purchase options, rights of first refusal or other preemptive rights to purchase the housing to preserve affordability, including but not limited to the right to purchase the housing in lieu of foreclosure’’. § 12746. Participation by States and local govern- ments The Secretary shall designate a State or unit of general local government to be a partici- pating jurisdiction when it complies with proce- dures that the Secretary shall establish by regu- lation, which procedures shall only provide for the following: (1) Allocation Not later than 20 days after funds to carry out this part become available (or, during the first year after November 28, 1990, not later than 20 days after (A) funds to carry out this part are provided in an appropriations Act, or (B) regulations to implement this part are pro- mulgated, whichever is later), the Secretary shall allocate funds in accordance with section 12747 of this title and promptly notify each ju- risdiction receiving a formula allocation of its allocation amount. If a jurisdiction is not al- ready a participating jurisdiction, the Sec- retary shall inform the jurisdiction in writing how the jurisdiction may become a partici- pating jurisdiction. (2) Consortia A consortium of geographically contiguous units of general local government shall be deemed to be a unit of general local govern- ment for purposes of this subchapter if the Secretary determines that the consortium— (A) has sufficient authority and adminis- trative capability to carry out the purposes of this subchapter on behalf of its member jurisdictions, and (B) will, according to a written certifi- cation by the State (or States, if the consor- tium includes jurisdictions in more than one State), direct its activities to alleviation of housing problems within the State or States. (3) Eligibility (A) Except as provided in paragraph (10), a jurisdiction receiving a formula allocation under section 12747 of this title shall be eligi- ble to become a participating jurisdiction if its formula allocation is $750,000 or greater, or if the Secretary finds that— (i) the jurisdiction has a local housing au- thority and has demonstrated a capacity to carry out provisions of this part, and (ii) the State has authorized the Secretary to transfer to the jurisdiction a portion of the State’s allocation that is equal to or greater than the difference between the ju- risdiction’s formula allocation and $750,000, or the State or jurisdiction has made avail- able from the State’s or jurisdiction’s own sources an equal amount for use by the juris- diction in conformance with the provisions of this part. (B) If a jurisdiction has met the require- ments of subparagraph (A), the jurisdiction’s formula allocation for a fiscal year shall sub- sequently be deemed to equal the sum of the jurisdiction’s allocation under section 12747(a)(1) of this title and the amount made available to the jurisdiction under subpara- graph (A)(ii). (4) Notification If an eligible jurisdiction notifies the Sec- retary in writing, not later than 30 days after receiving notification under paragraph (1), of its intention to become a participating juris- diction, the Secretary shall reserve an amount equal to the jurisdiction’s allocation (plus any reallocations for which the jurisdiction is eli- gible under section 12747(d)(1) of this title) pending the jurisdiction’s designation as a participating jurisdiction. The Secretary shall reallocate, in accordance with paragraph (6) of this section, any funds reserved under the pre- vious sentence if the Secretary determines that the jurisdiction will not meet the re- quirements for designation as a participating jurisdiction within a reasonable period of time. (5) Submission of strategy Not later than 90 days after providing notifi- cation under paragraph (4), an eligible juris- diction shall submit to the Secretary a com- prehensive housing affordability strategy in accordance with section 12705 of this title. (6) Reallocation If the Secretary determines that a jurisdic- tion has failed to meet the requirements of the previous 3 paragraphs or if the Secretary, after providing for amendments and resubmissions in accordance with section 12705(c)(3) of this title, disapproves the jurisdiction’s com- prehensive housing affordability strategy, the Secretary shall reallocate any funds reserved for the jurisdiction as follows: (A) State If a State has failed to meet the require- ments, the Secretary shall— (i) make any funds reserved for the State available by direct reallocation among ap- plications submitted by units of general local government within the State or con- sortia that include units of general local government within the State, insofar as approvable 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, and 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