§ 122E-6. Uses of funds.
§122E‑6. Uses of funds.
Funds from the Fund shall beused to increase the supply of decent, affordable and energy‑efficienthousing for low, very low, and moderate income residents of the State asdefined in G.S. 122E‑2. Such funds shall be used to finance, in whole orin part, projects and activities eligible under this section. The Agency shallmake available loans, grants, interest reduction payments, or other comparableforms of assistance to eligible applicants. Provided, however, that with regardto those funds of the Fund which are Stripper Well Litigation Funds or DiamondShamrock Funds, grants shall be from both the principal and income generated bythe principal of such Funds so that all such Funds will be expended within areasonable period of time. Provided, further, that with regard to that portionof the Fund which is derived from the appropriation of State funds, the amountof grants to be made in any fiscal year shall be limited to the amount ofincome generated by the principal of that portion of the Fund.
(a) Beneficiaries.
(1) The Partnershipshall ensure that the Agency's program for uses of monies from the Funddirectly benefit low, very low and moderate income persons and families as setforth in subsections (2), (3), and (4) below.
(2) The Partnershipshall ensure that at least thirty percent (30%) of the total funds from theFund eligible for expenditure by the Agency in any fiscal year directly benefitpersons and families whose incomes do not exceed thirty percent (30%) of the medianfamily income for the local area, with adjustments for family size, accordingto the latest figures available from the U.S. Department of Housing and UrbanDevelopment.
(3) The Partnershipshall be authorized to allocate up to thirty percent (30%) of the total fundsfrom the Fund for the benefit of persons and families whose incomes do notexceed fifty percent (50%) of the median family income for the local area, withadjustments for family size, according to the latest figures available from theU.S. Department of Housing and Urban Development; provided, however, thesefunds may also be directed for the benefit of the persons and families definedin subsection (2).
(4) The Partnershipshall ensure that no more than forty percent (40%) of the total funds from thefund eligible for expenditure by the Agency in any fiscal year directly benefitpersons and families whose incomes do not exceed eighty percent (80%) of themedian family income for the local area, with adjustments for family size,according to the latest figures available from the U.S. Department of Housingand Urban Development.
(b) Eligible Projects.
(1) An eligible projectconsists of one or more residential buildings containing similarly constructedunits, the site on which the building(s) is located and any functionallyrelated facilities. Multiple buildings may constitute a project only ifbounded together as a result of proximate location, or common ownership andfinancing.
(2) Projects whichprovide for the construction or rehabilitation of rental projects must containcontractual guarantees to ensure that at least twenty percent (20%) of theunits are occupied by persons and families defined in G.S. 122E‑6(a) (2)and (3) for a period of time following the award of grants or loan funds fromthe Fund, said period to be not less than 10 years, and shall be established bythe rules and regulations promulgated by the Partnership and are affordablehousing units as defined in G.S. 122E‑2(9) [G.S. 122E‑2(6)].
(c) Eligible Uses forState Appropriated Funds.
Eligible activities include, butare not limited to the following:
(1) Rehabilitation,including weatherization, of sub‑standard housing units;
(2) Assistance for costsof necessary studies, surveys, plans and permits, engineering, legal and architecturaland other technical services;
(3) new construction,including costs of land acquisition and site preparation;
(4) Assistance for theconstruction or rehabilitation of shelters for the homeless;
(5) Assistance in thedevelopment of manufactured housing sites which constitute eligible projects asdefined in subsection (b) of this section. The Agency may contract withoutside organizations to provide such assistance; and
(6) Such other programswhich increase the supply of decent and affordable housing for low, very low,and moderate income persons which the Partnership shall deem appropriate tomeet the purposes stated in this section.
(d) Eligible Uses forStripper Well Litigation Funds and Diamond Shamrock Litigation Funds.
(1) Eligible uses forthe Stripper Well Litigation funds shall be those uses permitted underParagraph II.B.3.f.ii. of the Settlement Agreement that was approved by Orderof the Court, dated July 7, 1986, including, but not limited to, thoseresidential energy‑related uses which are identified in Exhibit J to saidSettlement Agreement.
(2) Eligible uses forthe Diamond Shamrock Litigation funds shall be those uses permitted underExhibit B to the Order of the Court, dated June 6, 1986, including but no [not]limited to those residential energy‑related uses which are identified inAttachment C to Exhibit B to said Order. (1987, c. 841, s. 1.)