US Laws, Codes, Statutes & Cases

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[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 42USC12704]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                CHAPTER 130--NATIONAL AFFORDABLE HOUSING
 
              SUBCHAPTER I--GENERAL PROVISIONS AND POLICIES
 
Sec. 12704. Definitions

    As used in this subchapter and in subchapter II of this chapter:
        (1) The term ``unit of general local government'' means a city, 
    town, township, county, parish, village, or other general purpose 
    political subdivision of a State; the Federated States of Micronesia 
    and Palau, the Marshall Islands, or a general purpose political 
    subdivision thereof; a consortium of such political subdivisions 
    recognized by the Secretary in accordance with section 12746(2) of 
    this title; and any agency or instrumentality thereof that is 
    established pursuant to legislation and designated by the chief 
    executive to act on behalf of the jurisdiction with regard to 
    provisions of this Act.
        (2) The term ``State'' means any State of the United States, the 
    District of Columbia, the Commonwealth of Puerto Rico, or any agency 
    or instrumentality thereof that is established pursuant to 
    legislation and designated by the chief executive officer to act on 
    behalf of the State with regard to the provisions of this Act.
        (3) The term ``jurisdiction'' means a State or unit of general 
    local government.
        (4) The term ``participating jurisdiction'' means any State or 
    unit of general local government that has been so designated in 
    accordance with section 12746 of this title.
        (5) The term ``nonprofit organization'' means any private, 
    nonprofit organization (including a State or locally chartered, 
    nonprofit organization) that--
            (A) is organized under State or local laws,
            (B) has no part of its net earnings inuring to the benefit 
        of any member, founder, contributor, or individual,
            (C) complies with standards of financial accountability 
        acceptable to the Secretary, and
            (D) has among its purposes significant activities related to 
        the provision of decent housing that is affordable to low-income 
        and moderate-income persons.

        (6) The term ``community housing development organization'' 
    means a nonprofit organization as defined in paragraph (5), that--
            (A) has among its purposes the provision of decent housing 
        that is affordable to low-income and moderate-income persons;
            (B) maintains, through significant representation on the 
        organization's governing board and otherwise, accountability to 
        low-income community residents and, to the extent practicable, 
        low-income beneficiaries with regard to decisions on the design, 
        siting, development, and management of affordable housing;
            (C) has a demonstrated capacity for carrying out activities 
        assisted under this Act; and
            (D) has a history of serving the local community or 
        communities within which housing to be assisted under this Act 
        is to be located.

    In the case of an organization serving more than one county, the 
    Secretary may not require that such organization, to be considered a 
    community housing development organization for purposes of this Act, 
    include as members on the organization's governing board low-income 
    persons residing in each county served.
        (7) The term ``government-sponsored mortgage finance 
    corporations'' means the Federal National Mortgage Association, the 
    Federal Home Loan Mortgage Corporation, and the Federal Agricultural 
    Mortgage Corporation.
        (8) The term ``housing'' includes manufactured housing and 
    manufactured housing lots and elder cottage housing opportunity 
    units that are small, free-standing, barrier-free, energy-efficient, 
    removable, and designed to be installed adjacent to existing 1- to 
    4-family dwellings.
        (9) The term ``very low-income families'' means low-income 
    families whose incomes do not exceed 50 percent of the median family 
    income for the area, as determined by the Secretary with adjustments 
    for smaller and larger families, except that the Secretary may 
    establish income ceilings higher or lower than 50 percent of the 
    median for the area on the basis of the Secretary's findings that 
    such variations are necessary because of prevailing levels of 
    construction costs or fair market rents, or unusually high or low 
    family incomes.
        (10) The term ``low-income families'' means families whose 
    incomes do not exceed 80 percent of the median income for the area, 
    as determined by the Secretary with adjustments for smaller and 
    larger families, except that the Secretary may establish income 
    ceilings higher or lower than 80 percent of the median for the area 
    on the basis of the Secretary's findings that such variations are 
    necessary because of prevailing levels of construction costs or fair 
    market rents, or unusually high or low family incomes.
        (11) The term ``families'' has the same meaning given that term 
    by section 1437a of this title.
        (12) The term ``security'' has the same meaning as in section 
    77b of title 15.
        (13) The term ``displaced homemaker'' means an individual who--
            (A) is an adult;
            (B) has not worked full-time full-year in the labor force 
        for a number of years but has, during such years, worked 
        primarily without remuneration to care for the home and family; 
        and
            (C) is unemployed or underemployed and is experiencing 
        difficulty in obtaining or upgrading employment.

        (14) The term ``first-time homebuyer'' means an individual and 
    his or her spouse who have not owned a home during the 3-year period 
    prior to purchase of a home with assistance under subchapter II of 
    this chapter, except that--
            (A) any individual who is a displaced homemaker may not be 
        excluded from consideration as a first-time homebuyer under this 
        paragraph on the basis that the individual, while a homemaker, 
        owned a home with his or her spouse or resided in a home owned 
        by the spouse;
            (B) any individual who is a single parent may not be 
        excluded from consideration as a first-time homebuyer under this 
        paragraph on the basis that the individual, while married, owned 
        a home with his or her spouse or resided in a home owned by the 
        spouse; and
            (C) an individual shall not be excluded from consideration 
        as a first-time homebuyer under this paragraph on the basis that 
        the individual owns or owned, as a principal residence during 
        such 3-year period, a dwelling unit whose structure is--
                (i) not permanently affixed to a permanent foundation in 
            accordance with local or other applicable regulations, or
                (ii) not in compliance with State, local, or model 
            building codes, or other applicable codes, and cannot be 
            brought into compliance with such codes for less than the 
            cost of constructing a permanent structure.

        (15) The term ``single parent'' means an individual who--
            (A) is unmarried or legally separated from a spouse; and
            (B)(i) has 1 or more minor children for whom the individual 
        has custody or joint custody; or
            (ii) is pregnant.

        (16) The term ``Secretary'' means the Secretary of Housing and 
    Urban Development, unless otherwise specified in this Act.
        (17) The term ``substantial rehabilitation'' means the 
    rehabilitation of residential property at an average cost in excess 
    of $25,000 per dwelling unit.
        (18) The term ``public housing agency'' has the meaning given 
    the term in section 1437a(b) of this title.
        (19) The term ``metropolitan city'' has the meaning given the 
    term in section 5302(a)(4) of this title.
        (20) The term ``urban county'' has the meaning given the term in 
    section 5302(a)(6) of this title.
        (21) The term ``certification'' means a written assertion, based 
    on supporting evidence, which shall be kept available for inspection 
    by the Secretary, the Inspector General and the public, which 
    assertion shall be deemed to be accurate for purposes of this Act, 
    unless the Secretary determines otherwise after inspecting the 
    evidence and providing due notice and opportunity for comment.
        (23) \1\ The term ``to demonstrate to the Secretary'' means to 
    submit to the Secretary a written assertion together with supporting 
    evidence that, in the determination of the Secretary, supports the 
    accuracy of the assertion.
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    \1\ So in original. Probably should be ``(22)''.
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        (24) \2\ The term ``insular area'' means any of the following: 
    Guam, the Northern Mariana Islands, the Virgin Islands, and American 
    Samoa.
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    \2\ So in original. Two pars. (24) have been enacted.
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        (24) \2\ The term ``energy efficient mortgage'' means a mortgage 
    that provides financing incentives for the purchase of energy 
    efficient homes, or that provides financing incentives to make 
    energy efficiency improvements in existing homes by incorporating 
    the cost of such improvements in the mortgage.
        (25) The term ``energy efficient mortgage'' means a mortgage 
    that provides financing incentives for the purchase of energy 
    efficient homes, or that provides financing incentives to make 
    energy efficiency improvements in existing homes by incorporating 
    the cost of such improvements in the mortgage.

(Pub. L. 101-625, title I, Sec. 104, Nov. 28, 1990, 104 Stat. 4085; Pub. 
L. 102-229, title I, Dec. 12, 1991, 105 Stat. 1709; Pub. L. 101-230, 
Sec. 2, Dec. 12, 1991, 105 Stat. 1720; Pub. L. 102-486, title I, 
Sec. 105(a), Oct. 24, 1992, 106 Stat. 2792; Pub. L. 102-550, title II, 
Secs. 211(a)(1), 217(a), 218, 219, title IX, Sec. 914(a), Oct. 28, 1992, 
106 Stat. 3756, 3760, 3761, 3877; Pub. L. 103-233, title II, Sec. 201, 
Apr. 11, 1994, 108 Stat. 363.)

                       References in Text

    This Act, referred to in pars. (1), (2), (6), (16), and (21), is 
Pub. L. 101-625, Nov. 28, 1990, 104 Stat. 4079, as amended, known as the 
Cranston-Gonzalez National Affordable Housing Act. For complete 
classification of this Act to the Code, see Short Title note set out 
under section 12701 of this title and Tables.


                               Amendments

    1994--Par. (2). Pub. L. 103-233 struck out ``and'' after 
``Columbia,'' and inserted before period at end ``, or any agency or 
instrumentality thereof that is established pursuant to legislation and 
designated by the chief executive officer to act on behalf of the State 
with regard to the provisions of this Act''.
    1992--Par. (1). Pub. L. 102-550, Sec. 211(a)(1), amended this 
section to read as if amendment made by Pub. L. 102-230, Sec. 2(1), had 
not been enacted. See 1991 Amendment note below.
    Par. (6). Pub. L. 102-550, Sec. 217(a), inserted concluding 
provisions.
    Par. (8). Pub. L. 102-550, Sec. 218, inserted before period at end 
``and elder cottage housing opportunity units that are small, free-
standing, barrier-free, energy-efficient, removable, and designed to be 
installed adjacent to existing 1- to 4-family dwellings''.
    Par. (14)(C). Pub. L. 102-550, Sec. 219, added subpar. (C).
    Par. (24). Pub. L. 102-550, Sec. 211(a)(1), amended this section to 
read as if amendment made by Pub. L. 102-230, Sec. 2(2), had not been 
enacted. See 1991 Amendment note below.
    Pub. L. 102-486 added par. (24) defining ``energy efficient 
mortgage''.
    Par. (25). Pub. L. 102-550, Sec. 914(a), added par. (25).
    1991--Par. (1). Pub. L. 102-230, Sec. 2(1), directed the 
substitution of ``the insular areas'' for ``Guam, the Northern Mariana 
Islands, the Virgin Islands, American Samoa, the Federated States of 
Micronesia and Palau, the Marshall Islands''. See 1992 Amendment note 
above.
    Pub. L. 102-229 struck out ``Guam, the Northern Mariana Islands, the 
Virgin Islands, American Samoa,'' after ``of a State;''.
    Par. (24). Pub. L. 102-230, Sec. 2(2), directed the addition of a 
par. (24) to read as follows: ``(24) The term `insular areas' means 
Guam, the Northern Mariana Islands, the United States Virgin Islands, 
and American Samoa.'' See 1992 Amendment note above.
    Pub. L. 102-229 added par. (24) defining ``insular area''.


                    Effective Date of 1994 Amendment

    Amendment by Pub. L. 103-233 applicable with respect to any amounts 
made available to carry out subchapter II (Sec. 12721 et seq.) of this 
chapter after Apr. 11, 1994, and any amounts made available to carry out 
that subchapter before that date that remain uncommitted on that date, 
with Secretary to issue any regulations necessary to carry out such 
amendment not later than end of 45-day period beginning on that date, 
see section 209 of Pub. L. 103-233, set out as a note under section 5301 
of this title.


                    Effective Date of 1992 Amendment

    Section 211(b) of Pub. L. 102-550 provided that: ``The amendments 
made by subsection (a) [amending this section and section 12747 of this 
title] shall apply with respect to fiscal year 1993 and thereafter.''
    Section 223 of title II of Pub. L. 102-550 provided that: ``The 
amendments made by this title [enacting section 12810 of this title and 
amending this section and sections 12705, 12724, 12742, 12745 to 12748, 
12750, 12771, 12773, 12774, 12782, and 12784 of this title] shall apply 
to unexpended funds allocated under title II of the Cranston-Gonzalez 
National Affordable Housing Act [42 U.S.C. 12721 et seq.] in fiscal year 
1992, except as otherwise specifically provided.''


                               Regulations

    Section 222 of title II of Pub. L. 102-550 provided that: ``The 
Secretary of Housing and Urban Development shall issue any final 
regulations necessary to implement the provisions of this title 
[enacting section 12810 of this title, amending this section and 
sections 12705, 12724, 12742, 12745 to 12748, 12750, 12771, 12773, 
12774, 12782, and 12784 of this title, and enacting provisions set out 
as notes under this section and sections 12746, 12747, and 12750 of this 
title] and the amendments made by this title not later than the 
expiration of the 180-day period beginning on the date of the enactment 
of this Act [Oct. 28, 1992], except as expressly provided otherwise in 
this title and the amendments made by this title. Such regulations shall 
be issued after notice and opportunity for public comment pursuant to 
the provisions of section 553 of title 5, United States Code 
(notwithstanding subsections (a)(2), (b)(B), and (d)(3) of such 
section).''


                             Transition Rule

    Section 217(b) of Pub. L. 102-550 provided that: ``For the purposes 
of determining compliance with the requirements of section 104(6) of the 
Cranston-Gonzalez National Affordable Housing Act [42 U.S.C. 12704(6)], 
the Secretary of Housing and Urban Development may provide an exception 
for organizations that meet the definition of community housing 
development organization, except for significant representation of low-
income community residents on the board, if such organization fulfills 
such requirement within 6 months of receiving funds under title II of 
such Act [42 U.S.C. 12721 et seq.] or September 30, 1993, whichever is 
sooner.''

                  Section Referred to in Other Sections

    This section is referred to in sections 1437bbb-8, 1472, 11403g, 
12773, 12896, 12902 of this title; title 12 section 4116.