42 U.S.C. § 1490p — Accountability

Page 4809 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1490p Subsec. (c). Pub. L. 102–54, § 13(q)(5)(B), substituted ‘‘Department of Veterans Affairs’’ for ‘‘Veterans’ Ad- ministration’’. 1990—Subsec. (b). Pub. L. 101–625 substituted ‘‘18- month period’’ for ‘‘6-month period’’. 1989—Subsec. (b). Pub. L. 101–235 substituted ‘‘6- month period beginning on December 15, 1989’’ for ‘‘1- year period beginning on November 7, 1988’’. 1988—Pub. L. 100–628 designated existing provisions as subsec. (a) and added subsecs. (b) and (c). Statutory Notes and Related Subsidiaries RETROACTIVITY OF APPROVAL OF HOUSING SUBDIVISIONS AMONG FEDERAL AGENCIES Pub. L. 103–120, § 8(b), Oct. 27, 1993, 107 Stat. 1151, pro- vided that: ‘‘An administrative approval of a housing subdivision made after June 15, 1993, and before the date of the enactment of this Act [Oct. 27, 1993] is ap- proved and shall be considered to have been lawfully made, but only if otherwise made in accordance with the provisions of section 535(b) of the Housing Act of 1949 [42 U.S.C. 1490o(b)].’’ Pub. L. 102–550, title VII, § 716(b), Oct. 28, 1992, 106 Stat. 3842, provided that: ‘‘Any administrative approval of any housing subdivision made after the expiration of the 18-month period beginning on the date of the enact- ment of the Department of Housing and Urban Develop- ment Reform Act of 1989 [Dec. 15, 1989] and before the date of the enactment of this Act [Oct. 28, 1992] is ap- proved and shall be considered to have been lawfully made, but only if otherwise made in accordance with the provisions of section 535(b) of the Housing Act of 1949 [42 U.S.C. 1490o(b)].’’ Pub. L. 101–625, title VII, § 718(b), Nov. 28, 1990, 104 Stat. 4297, provided that: ‘‘Any administrative approval of any housing subdivision made after the expiration of the 6-month period beginning on the date of the enact- ment of the Department of Housing and Urban Develop- ment Reform Act of 1989 [Dec. 15, 1989] and before the date of the enactment of this Act [Nov. 28, 1990] is here- by approved and shall be considered to have been law- fully made, but only if otherwise made in accordance with the provisions of section 535(b) of the Housing Act of 1949 [42 U.S.C. 1490o(b)].’’ § 1490p. Accountability (a) Notice regarding assistance (1) Publication of notice of availability The Secretary shall publish in the Federal Register notice of the availability of any as- sistance under any program or discretionary fund administered by the Secretary under this subchapter. (2) Publication of application procedures The Secretary shall publish in the Federal Register a description of the form and proce- dures by which application for the assistance may be made, and any deadlines relating to the award or allocation of the assistance. Such description shall be sufficient to enable any el- igible applicant to apply for such assistance. (3) Publication of selection criteria Not less than 30 days before any deadline by which applications or requests for assistance under any program or discretionary fund ad- ministered by the Secretary must be sub- mitted, the Secretary shall publish in the Fed- eral Register the criteria by which selection for the assistance will be made. Such criteria shall include any objective measures of hous- ing need, project merit, or efficient use of re- sources that the Secretary determines are ap- propriate and consistent with the statute under which the assistance is made available. (4) Documentation of decisions (A) The Secretary shall award or allocate as- sistance only in response to a written applica- tion in a form approved in advance by the Sec- retary, except where other award or allocation procedures are specified in statute. (B) The Secretary shall ensure that docu- mentation and other information regarding each application for assistance is sufficient to indicate the basis on which any award or allo- cation was made or denied. The preceding sen- tence shall apply to— (i) any application for an award or alloca- tion of assistance made by the Secretary to a State, unit of general local government, or other recipient of assistance, and (ii) any application for a subsequent award or allocation of such assistance by such State, unit of general local government or other recipient. (C) The Secretary shall ensure that each ap- plication and all related documentation and other information referred to in subparagraph (B) is readily available for public inspection for a period of not less than 10 years, begin- ning not less than 30 days following the date on which the award or allocation is made. (5) Emergency exception The Secretary may waive the requirements of paragraphs (1), (2), and (3) if the Secretary determines that the waiver is required for ade- quate response to an emergency. Not less than 30 days after providing a waiver under the pre- ceding sentence, the Secretary shall publish in the Federal Register the Secretary’s reasons for so doing. (b) Disclosures by applicants The Secretary shall require the disclosure of information with respect to any application for assistance under this subchapter submitted by any applicant who has received or, in the deter- mination of the Secretary, can reasonably be ex- pected to receive assistance under this sub- chapter in excess of $200,000 in the aggregate during any fiscal year. Such information shall include the following: (1) Other government assistance Information regarding any related assist- ance from the Federal Government, a State, or a unit of general local government, or any agency or instrumentality thereof, that is ex- pected to be made available with respect to the project or activities for which the appli- cant is seeking assistance under this sub- chapter. Such related assistance shall include but not be limited to any loan, grant, guar- antee, insurance, payment, rebate, subsidy, credit, tax benefit, or any other form of direct or indirect assistance. (2) Interested parties The name and pecuniary interest of any per- son who has a pecuniary interest in the project or activities for which the applicant is seeking assistance. Persons with a pecuniary interest in the project or activity shall include Page 4810 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1490p 1 So in original. Probably should be ‘‘of this’’. 2 So in original. Probably should be ‘‘subsection’’. but not be limited to any developers, contrac- tors, and consultants involved in the applica- tion for assistance under this subchapter or the planning, development, or implementation of the project or activity. For purposes of this paragraph, residency of an individual in hous- ing for which assistance is being sought shall not, by itself, be considered a pecuniary inter- est. (3) Expected sources and uses A report satisfactory to the Secretary of the expected sources and uses of funds that are to be made available for the project or activity. (c) Updating of disclosure During the period when an application is pend- ing or assistance is being provided, the applicant shall update the disclosure required under the previous subsection within 30 days of any sub- stantial change. (d) Repealed. Pub. L. 104–65, § 11(b)(2), Dec. 19, 1995, 109 Stat. 701 (e) Remedies and penalties (1) Administrative remedies If the Secretary receives or obtains informa- tion providing a reasonable basis to believe that a violation of subsection (b), (c), or (d) this 1 section has occurred, the Secretary shall— (A) in the case of a selection that has not been made, determine whether to terminate the selection process or take other appro- priate actions; and (B) in the case of a selection that has been made, determine whether to— (i) void or rescind the selection, subject to review and determination on the record after opportunity for a hearing; (ii) impose sanctions upon the violator, including debarment, subject to review and determination on the record after op- portunity for a hearing; (iii) recapture any funds that have been disbursed; (iv) permit the violating applicant se- lected to continue to participate in the program; or (v) take any other actions that the Sec- retary considers appropriate. The Secretary shall publish in the Federal Register a descriptive statement of each deter- mination made and action taken under this paragraph. (2) Civil penalties Whoever violates any section 2 of this sec- tion shall be subject to the imposition of a civil penalty in a civil action brought by the United States in an appropriate district court of the United States. A civil penalty under this paragraph may not exceed— (A) $100,000 in the case of an individual; or (B) $1,000,000 in the case of an applicant other than an individual. (3) Deposit of penalties in insurance funds Notwithstanding any other provision of law, all civil money penalties collected under this section shall be deposited in the Rural Hous- ing Insurance Fund. (4) Nonexclusiveness of remedies This subsection may not be construed to limit the applicability of any requirements, sanctions, penalties, or remedies established under any other law. The Secretary shall not be relieved of any obligation to carry out the requirements of this section because such other requirements, sanctions, penalties, or remedies apply. (f) Limitation of assistance The Secretary shall certify that assistance provided by the Secretary to any housing project shall not be more than is necessary to provide affordable housing after taking account of assistance from all Federal, State, and local sources. The Secretary shall adjust the amount of assistance provided to an applicant to com- pensate for any changes reported under sub- section (c). (g) Regulations Not less than 180 days following December 15, 1989, the Secretary shall promulgate regulations to implement this section. (h) ‘‘Assistance’’ defined For purposes of this section, the term ‘‘assist- ance’’ means any housing grant, loan, guar- antee, insurance, rebate, subsidy, tax credit ben- efit, or other form of direct or indirect assist- ance, for the original construction or develop- ment of the project. (i) Report by Secretary The Secretary shall submit to the Congress, not later than 180 days following December 15, 1989, a report describing actions taken to carry out this section, including actions to inform and educate officers and employees of the Depart- ment of Agriculture regarding the provisions of this section. (July 15, 1949, ch. 338, title V, § 536, as added Pub. L. 101–235, title IV, § 401(a), Dec. 15, 1989, 103 Stat. 2045; amended Pub. L. 101–625, title VII, § 719(a), Nov. 28, 1990, 104 Stat. 4297; Pub. L. 104–65, § 11(b)(2), Dec. 19, 1995, 109 Stat. 701.) Editorial Notes CODIFICATION December 15, 1989, referred to in subsec. (g), was in the original ‘‘the date of enactment of this Act’’, which was translated as meaning the date of enactment of Pub. L. 101–235, which enacted this section, to reflect the probable intent of Congress. AMENDMENTS 1995—Subsec. (d). Pub. L. 104–65 struck out subsec. (d) which related to regulation of lobbyists and consult- ants. 1990—Subsec. (h). Pub. L. 101–625 inserted before pe- riod at end ‘‘, for the original construction or develop- ment of the project’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1994 AMENDMENT Amendment by Pub. L. 104–65 effective Jan. 1, 1996, except as otherwise provided, see section 24 of Pub. L. 104–65, set out as an Effective Date note under section 1601 of Title 2, The Congress. Page 4811 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1490p–2 1 So in original. Probably should be ‘‘low- or moderate-in- come’’. EFFECTIVE DATE Pub. L. 101–235, title IV, § 401(b), Dec. 15, 1989, 103 Stat. 2048, provided that: ‘‘Section 536 of the Housing Act of 1949 [this section], as added by subsection (a), shall take effect on the effective date of regulations imple- menting such section.’’ § 1490p–1. Office of Rural Housing Preservation (a) Establishment There is established within the Farmers Home Administration an Office of Rental Housing Preservation (hereafter in this section referred to as the ‘‘Office’’). The Office shall be headed by a Director designated by the Secretary of Agri- culture. (b) Purposes The purposes of the Office are: (1) to review and process applications under section 1472(c) of this title and section 1485(t) of this title related to the preservation of rural rental housing; (2) to provide technical or financial assist- ance to any other projects needing such assist- ance; (3) to coordinate and direct all other activi- ties related to the preservation of rural hous- ing; and (4) to monitor compliance of projects prepaid or receiving incentives under the Housing Act of 1949. (July 15, 1949, ch. 338, title V, § 537, as added Pub. L. 102–550, title VII, § 712(c), Oct. 28, 1992, 106 Stat. 3841.) Editorial Notes REFERENCES IN TEXT The Housing Act of 1949, referred to in subsec. (b)(4), is act July 15, 1949, ch. 338, 63 Stat. 413, which is classi- fied principally to this chapter (§ 1441 et seq.). For com- plete classification of this Act to the Code, see Short Title note set out under section 1441 of this title and Tables. § 1490p–2. Loan guarantees for multifamily rental housing in rural areas (a) Authority The Secretary may make commitments to guarantee eligible loans for the development costs of eligible housing and related facilities, and may guarantee such eligible loans, in ac- cordance with this section. (b) Extent of guarantee A guarantee made under this section shall guarantee repayment of an amount not exceed- ing the total of the amount of the unpaid prin- cipal and interest of the loan for which the guar- antee is made. The liability of the United States under any guarantee under this section shall de- crease or increase pro rata with any decrease or increase of the amount of the unpaid portion of the obligation. (c) Eligible borrowers A loan guaranteed under this section may be made to a nonprofit organization, an agency or body of any State government or political sub- division thereof, an Indian tribe, or a private en- tity. (d) Eligible housing A loan may be guaranteed under this section only if the loan is used for the development costs of housing and related facilities (as such terms are defined in section 1485(e) of this title) that— (1) consists of 5 or more adequate dwellings; (2) is available for occupancy only by low or moderate income 1 families or persons, whose incomes at the time of initial occupancy do not exceed 115 percent of the median income of the area, as determined by the Secretary; (3) will remain available as provided in para- graph (2), according to such binding commit- ments as the Secretary may require, for the period of the original term of the loan guaran- teed, unless the housing is acquired by fore- closure (or instrument in lieu of foreclosure) or the Secretary waives the applicability of such requirement for the loan only after deter- mining, based on objective information, that— (A) there is no longer a need for low- and moderate-income housing in the market area in which the housing is located; (B) housing opportunities for low-income households and minorities will not be re- duced as a result of the waiver; and (C) additional Federal assistance will not be necessary as a result of the waiver; and (4) is located in a rural area. (e) Eligible lenders (1) Requirement A loan may be guaranteed under this section only if the loan is made by a lender that the Secretary determines— (A) meets the qualifications, and has been approved by the Secretary of Housing and Urban Development, to make loans for mul- tifamily housing that are to be insured under the National Housing Act [12 U.S.C. 1701 et seq.]; (B) meets the qualifications, and has been approved by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, to make loans for multifamily housing that are to be sold to such corporations; or (C) meets any qualifications that the Sec- retary may, by regulation, establish for par- ticipation of lenders in the loan guarantee program under this section. (2) Eligibility list and annual audit The Secretary shall establish a list of eligi- ble lenders and shall annually conduct an audit of each lender included in the list for purposes of determining whether such lender continues to be an eligible lender. (f) Loan terms Each loan guaranteed pursuant to this section shall— (1) be made for a period of not less than 25 nor greater than 40 years from the date the loan was made and may provide for amortiza- tion of the loan over a period of not to exceed 40 years with a final payment of the balance due at the end of the loan term;