§ 12873. Implementation grants
(a)
Grants
The Secretary is authorized to make implementation grants to applicants for the purpose of carrying out homeownership programs approved under this part.
(b)
Eligible activities
Implementation grants may be used for activities to carry out homeownership programs (including programs for cooperative ownership), including the following activities:
(2)
Acquisition of the eligible property for the purpose of transferring ownership to eligible families in accordance with a homeownership program that meets the requirements under this part.
(3)
Rehabilitation of any property covered by the homeownership program, in accordance with standards established by the Secretary.
(5)
Administrative costs of the applicant, which may not exceed 15 percent of the amount of the assistance provided under this section.
(6)
Development of resident management corporations and resident management councils, but only if the applicant has not received assistance under section
12872 [1] of this title for such activities.
(10)
Planning for establishment of for- or not-for-profit small businesses by or on behalf of residents, job training, and other activities that promote economic self-sufficiency of homebuyers and homeowners of the property covered by the homeownership program and economic development of the neighborhood.
(11)
Funding of operating expenses and replacement reserves of the property covered by the homeownership program.
(c)
Matching funding
(1)
In general
Each recipient shall assure that contributions equal to not less than 33 percent of the grant amounts made available under this section, excluding any amounts provided for post-sale operating expense, shall be provided from non-Federal sources to carry out the homeownership program.
(2)
Form
Such contributions may be in the form of—
(A)
cash contributions from non-Federal resources, which may not include funds from a grant made under section
5306
(b) or section
5306
(d) of this title;
(B)
payment of administrative expenses, as defined by the Secretary, from non-Federal resources, including funds from a grant made under section
5306
(b) or section
5306
(d) of this title;
(C)
the value of taxes, fees, or other charges that are normally and customarily imposed but are waived, foregone, or deferred in a manner that facilitates the implementation of a homeownership program assisted under this part;
(D)
the value of land or other real property as appraised according to procedures acceptable to the Secretary;
(E)
the value of investment in on-site and off-site infrastructure required for a homeownership program assisted under this part; or
Contributions for administrative expenses shall be recognized only up to an amount equal to 7 percent of the total amount of grants made available under this section.
(d)
2 Application
(1)
Form and procedure
An application for an implementation grant shall be submitted by an applicant in such form and in accordance with such procedures as the Secretary shall establish.
(2)
Minimum requirements
The Secretary shall require that an application contain at a minimum—
(A)
a request for an implementation grant, specifying the amount of the grant requested and its proposed uses;
(B)
if applicable, an application for assistance under section
1437f of this title, specifying the proposed uses of such assistance and the period during which the assistance will be needed;
(C)
a description of the qualifications and experience of the applicant in providing low-income housing;
(D)
a description of the proposed homeownership program, consistent with section
12874 [3] of this title and the other requirements of this part, specifying the activities proposed to be carried out and their estimated costs, identifying reasonable schedules for carrying it out, and demonstrating the program will comply with the affordability requirements under section
12874
(b) [3] of this title;
(E)
identification and description of the property involved, and a description of the composition of the tenants, including family size and income;
(F)
a description of and commitment for the resources that are expected to be made available to provide the matching funding required under subsection (c) of this section and of other resources that are expected to be made available in support of the homeownership program;
(H)
the proposed sales price, the basis for such price determination, and terms to an entity, if any, that will purchase the property for resale to eligible families;
(L)
a certification by the public official responsible for submitting the comprehensive housing affordability strategy under section
12705 of this title that the proposed activities are consistent with the approved housing strategy of the State or unit of general local government within which the project is located (or, during the first 12 months after November 28, 1990, that the application is consistent with such other existing State or local housing plan or strategy that the Secretary shall determine to be appropriate); and
(M)
a certification that the applicant will comply with the requirements of the Fair Housing Act [42 U.S.C. 3601 et seq.], title VI of the Civil Rights Act of 1964 [42 U.S.C. 2000d et seq.], section 504 of the Rehabilitation Act of 1973 [29 U.S.C. 794], and the Age Discrimination Act of 1975 [42 U.S.C. 6101 et seq.], and will affirmatively further fair housing.
(d)
4 Selection criteria
The Secretary shall establish selection criteria for assistance under this section, which shall include—
(4)
the potential for developing an affordable homeownership program and the suitability of the property for homeownership;
(5)
national geographic diversity among housing for which applicants are selected to receive assistance;
(6)
the extent to which a sufficient supply of affordable rental housing of the type assisted under this title [5] exists in the locality, so that the implementation of the homeownership program will not appreciably reduce the number of such rental units available to residents currently residing in such units or eligible for residency in such units; and
(7)
such other factors as the Secretary determines to be appropriate for purposes of carrying out the program established by the [6] part in an effective and efficient manner.
(e)
Approval
The Secretary shall notify each applicant, not later than 6 months after the date of the submission of the application, whether the application is approved or not approved. The Secretary may approve the application for an implementation grant with a statement that the application for the section
8 [42 U.S.C. 1437f] assistance for residents of the project not purchasing units is conditionally approved, subject to the availability of appropriations in subsequent fiscal years.
[1] See References in Text note below.
[2] So in original. Two subsecs. (d) have been enacted.
[3] See References in Text note below.
[4] So in original. Two subsecs. (d) have been enacted.
[5] See References in Text note below.
[6] So in original. Probably should be “this”.