42 U.S.C. § 12771 — Set-aside for community housing devel-

Page 8469 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 12771 1 So in original. The word ‘‘for’’ probably should not appear. (b) Termination of tenancy An owner shall not terminate the tenancy or refuse to renew the lease of a tenant of rental housing assisted under this subchapter except for serious or repeated violation of the terms and conditions of the lease, for violation of ap- plicable Federal, State, or local law, or for other good cause. Any termination or refusal to renew must be preceded by not less than 30 days by the owner’s service upon the tenant of a written no- tice specifying the grounds for the action. Such 30-day waiting period is not required if the grounds for the termination or refusal to renew involve a direct threat to the safety of the ten- ants or employees of the housing, or an immi- nent and serious threat to the property (and the termination or refusal to renew is in accordance with the requirements of State or local law). (c) Maintenance and replacement The owner of rental housing assisted under this subchapter shall maintain the premises in compliance with all applicable housing quality standards and local code requirements. (d) Tenant selection The owner of rental housing assisted under this subchapter shall adopt written tenant selec- tion policies and criteria that— (1) are consistent with the purpose of pro- viding housing for very low-income and low- income families, (2) are reasonably related to program eligi- bility and the applicant’s ability to perform the obligations of the lease, (3) give reasonable consideration to the housing needs of families that would have a preference under section 1437d(c)(4)(A) of this title, and (4) provide for (A) the selection of tenants from a written waiting list in the chrono- logical order of their application, insofar as is practicable, and (B) for 1 the prompt notifica- tion in writing of any rejected applicant of the grounds for any rejection. (Pub. L. 101–625, title II, § 225, Nov. 28, 1990, 104 Stat. 4113; Pub. L. 114–113, div. L, title II, § 235, Dec. 18, 2015, 129 Stat. 2896.) Editorial Notes AMENDMENTS 2015—Subsec. (b). Pub. L. 114–113 inserted at end ‘‘Such 30-day waiting period is not required if the grounds for the termination or refusal to renew involve a direct threat to the safety of the tenants or employ- ees of the housing, or an imminent and serious threat to the property (and the termination or refusal to renew is in accordance with the requirements of State or local law).’’ § 12756. Monitoring of compliance (a) Enforceable agreements Each participating jurisdiction, through bind- ing contractual agreements with owners and otherwise, shall ensure long-term compliance with the provisions of this subchapter. Such measures shall provide for (1) enforcement of the provisions of this subchapter by the jurisdiction or by the intended beneficiaries, and (2) rem- edies for the breach of such provisions. (b) Periodic monitoring Each participating jurisdiction, not less fre- quently than annually, shall review the activi- ties of owners of affordable housing assisted under this subchapter for rental to assess com- pliance with the requirements of this sub- chapter. Such review shall include on-site in- spection to determine compliance with housing codes and other applicable regulations. The re- sults of each review shall be included in the ju- risdiction’s performance report submitted to the Secretary under section 12708(a) of this title and made available to the public. (c) Special procedures for certain projects In the case of small-scale or scattered site housing, the Secretary may provide for such streamlined procedures for achieving the pur- poses of this section as the Secretary deter- mines to be appropriate. (Pub. L. 101–625, title II, § 226, Nov. 28, 1990, 104 Stat. 4114.) PART B—COMMUNITY HOUSING PARTNERSHIP § 12771. Set-aside for community housing devel- opment organizations (a) In general For a period of 24 months after funds under part A are made available to a jurisdiction, the jurisdiction shall reserve not less than 15 per- cent of such funds for investment only in hous- ing to be developed, sponsored, or owned by community housing development organizations. Each participating jurisdiction shall make rea- sonable efforts to identify community housing development organizations that are capable or can reasonably be expected to become capable of carrying out elements of the jurisdiction’s hous- ing strategy and to encourage such community housing development organizations to do so. If during the first 24 months of its participation under this subchapter, a participating jurisdic- tion is unable to identify a sufficient number of capable community housing development orga- nizations, then up to 20 percent of the funds al- located to that jurisdiction under this section, but not to exceed $150,000, may be made avail- able to carry out activities that develop the ca- pacity of community housing development orga- nizations in that jurisdiction. A participating jurisdiction is authorized to enter into contracts with community housing development organiza- tions to carry out this section. (b) Recapture and reuse If any funds reserved under subsection (a) re- main uninvested for a period of 24 months, then the Secretary shall deduct such funds from the line of credit in the participating jurisdiction’s HOME Investment Trust Fund and make such funds available by direct reallocation (1) to other participating jurisdictions for affordable housing developed, sponsored or owned by com- munity housing development organizations, or (2) to nonprofit intermediary organizations to carry out activities that develop the capacity of community housing development organizations Page 8470 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 12772 consistent with section 12773 of this title, with preference to community housing development organizations serving the jurisdiction from which the funds were recaptured. (c) Direct reallocation criteria Insofar as practicable, direct reallocations under this section shall be made according to the selection criteria established under section 12747(c) of this title. (Pub. L. 101–625, title II, § 231, Nov. 28, 1990, 104 Stat. 4114; Pub. L. 102–550, title II, § 212(a), (b), Oct. 28, 1992, 106 Stat. 3757.) Editorial Notes AMENDMENTS 1992—Subsec. (a). Pub. L. 102–550 substituted ‘‘24’’ for ‘‘18’’ in first sentence and inserted after second sen- tence ‘‘If during the first 24 months of its participation under this subchapter, a participating jurisdiction is unable to identify a sufficient number of capable com- munity housing development organizations, then up to 20 percent of the funds allocated to that jurisdiction under this section, but not to exceed $150,000, may be made available to carry out activities that develop the capacity of community housing development organiza- tions in that jurisdiction.’’ Subsec. (b). Pub. L. 102–550, § 212(a), substituted ‘‘24’’ for ‘‘18’’. 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. § 12772. Project-specific assistance to community housing development organizations (a) In general Amounts reserved under section 12771 of this title may be used for activities eligible under section 12742 of this title and, in amounts not to exceed 10 percent of the amounts so reserved, for other activities specified under this section. (b) Project-specific technical assistance and site control loans (1) In general Amounts reserved under section 12771 of this title may be used to provide technical assist- ance and site control loans to community housing development organizations in the early stages of site development for an eligible project. Such loans shall not exceed amounts that the jurisdiction determines to be cus- tomary and reasonable project preparation costs allowable under paragraph (2). (2) Allowable expenses A loan under this subsection may be pro- vided to cover project expenses necessary to determine project feasibility (including costs of an initial feasibility study), consulting fees, costs of preliminary financial applications, legal fees, architectural fees, engineering fees, engagement of a development team, site con- trol and title clearance. (3) Repayment A community housing development organi- zation that receives a loan under this sub- section shall repay the loan to the partici- pating jurisdiction’s HOME Investment Trust Fund from construction loan proceeds or other project income. The participating jurisdiction may waive repayment of the loan, in part or in whole, if there are impediments to project de- velopment that the participating jurisdiction determines are reasonably beyond the control of the borrower. (c) Project-specific seed money loans (1) In general Amounts reserved under section 12771 of this title may be used to provide loans to commu- nity housing development organizations to cover preconstruction project costs that the jurisdiction determines to be customary and reasonable, including, but not limited to the costs of obtaining firm construction loan com- mitments, architectural plans and specifica- tions, zoning approvals, engineering studies and legal fees. (2) Eligible sponsors A loan under this subsection may be pro- vided only to a community housing develop- ment organization that has, with respect to the project concerned, site control, a prelimi- nary financial commitment, and a capable de- velopment team. (3) Repayment A community housing development organi- zation that receives a loan under this sub- section shall repay the loan to the jurisdic- tion’s HOME Investment Trust Fund from con- struction loan proceeds or other project in- come. The participating jurisdiction may waive repayment of the loan, in whole or in part, if there are impediments to project de- velopment that the participating jurisdiction determines are reasonably beyond the control of the borrower. (Pub. L. 101–625, title II, § 232, Nov. 28, 1990, 104 Stat. 4115.) § 12773. Housing education and organizational support (a) In general The Secretary is authorized to provide edu- cation and organizational support assistance, in conjunction with other assistance made avail- able under this part— (1) to facilitate the education of low-income homeowners and tenants; (2) to promote the ability of community housing development organizations, including community land trusts, to maintain, rehabili- tate and construct housing for low-income and moderate-income families in conformance with the requirements of this subchapter; and (3) to achieve the purposes under paragraphs (1) and (2) by helping women who reside in low- and moderate-income neighborhoods re- habilitate and construct housing in the neigh- borhoods. (b) Eligible activities Assistance under this section may be used only for the following eligible activities: (1) Organizational support Organizational support assistance may be made available to community housing devel-