2016 US Code
Title 42 - The Public Health and Welfare
Chapter 130 - National Affordable Housing
Subchapter IV - Hope for Homeownership of Multifamily and Single Family Homes
Part A - Hope for Homeownership of Multifamily Units
Sec. 12874 - Homeownership program requirements
| 42 U.S.C. § 12874 (2016) |
| §12874. Homeownership program requirements |
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(a) In general
A homeownership program under this part shall provide for acquisition by eligible families of ownership interest in, or shares representing, the units in an eligible property under any arrangement determined by the Secretary to be appropriate, such as cooperative ownership (including limited equity cooperative ownership) and fee simple ownership (including condominium ownership), for occupancy by the eligible families. (b) AffordabilityA homeownership program under this part shall provide for the establishment of sales prices (including principal, insurance, taxes, and interest and closing costs) for initial acquisition of the property, and for sales to eligible families, such that the eligible family shall not be required to expend more than 30 percent of the adjusted income of the family per month to complete a sale under the homeownership program. (c) PlanA homeownership program under this part shall provide, and include a plan, for— (1) identifying and selecting eligible families to participate in the homeownership program; (2) providing relocation assistance to families who elect to move; (3) ensuring continued affordability by tenants, homebuyers, and homeowners in the property; and (4) providing ongoing training and counseling for homebuyers and homeowners. Acquisition or rehabilitation of a property under a homeownership program under this part may not consist of acquisition or rehabilitation of less than all of the units in the property. The provisions of this subsection may be waived upon a finding by the Secretary that the sale of less than all the buildings in a project is feasible and will not result in a hardship to any tenants of the project who are not included in the homeownership program. (e) Financing (1) In generalThe application shall identify and describe the proposed financing for (A) any rehabilitation, and (B) acquisition (i) of the project, where applicable, by an entity for transfer to eligible families, and (ii) by eligible families of ownership interests in, or shares representing, units in the project. Financing may include use of the implementation grant, sale for cash, or other sources of financing (subject to applicable requirements), including conventional mortgage loans and mortgage loans insured under title II of the National Housing Act [12 U.S.C. 1707 et seq.]. Property transferred under this part shall not be pledged as collateral for debt or otherwise encumbered except when the Secretary determines that— (A) such encumbrance will not threaten the long-term availability of the property for occupancy by low-income families; (B) neither the Federal Government nor the public housing agency will be exposed to undue risks related to action that may have to be taken pursuant to paragraph (3); (C) any debt obligation can be serviced from project income, including operating assistance; and (D) the proceeds of such encumbrance will be used only to meet housing standards in accordance with subsection (f) or to make such additional capital improvements as the Secretary determines to be consistent with the purposes of this part. Any lender that provides financing in connection with a homeownership program under this part shall give the public housing agency, resident management corporation, individual owner, or other appropriate entity a reasonable opportunity to cure a financial default before foreclosing on the property, or taking other action as a result of the default. The application shall include a plan ensuring that the unit— (1) will be free from any defects that pose a danger to health or safety before transfer of an ownership interest in, or shares representing, a unit to an eligible family; and (2) will, not later than 2 years after the transfer to an eligible family, meet minimum housing standards established by the Secretary for the purpose of this title.1 No tenant residing in a dwelling unit in a property on the date the Secretary approves an application for an implementation grant may be evicted by reason of a homeownership program approved under this part. If a tenant decides not to purchase a unit, or is not qualified to do so, the Secretary shall, subject to the availability of appropriations, ensure that rental assistance under section 1437f of this title is available for use by each otherwise qualified tenant in that or another property. The recipient shall also inform each such tenant that if the tenant chooses to move, the recipient will pay relocation assistance in accordance with the approved homeownership program. |
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(Pub. L. 101–625, title IV, §424, Nov. 28, 1990, 104 Stat. 4166.) |
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REFERENCES IN TEXT
The National Housing Act, referred to in subsec. (e)(1), is act June 27, 1934, ch. 847, 48 Stat. 1246, as amended. Title II of the Act is classified principally to subchapter II (§1707 et seq.) of chapter 13 of Title 12, Banks and Banking. For complete classification of this Act to the Code, see section 1701 of Title 12 and Tables. This title, referred to in subsec. (f)(2), is title IV of Pub. L. 101–625, Nov. 28, 1990, 104 Stat. 4148, known as the Homeownership and Opportunity Through HOPE Act, which enacted this subchapter and subchapter II–A (§1437aaa et seq.) of chapter 8 of this title, amended sections 1437c, 1437f, 1437l, 1437p, 1437r, and 1437s of this title and section 1709 of Title 12, and enacted provisions set out as notes under sections 1437c, 1437aa, and 1437aaa of this title. For complete classification of title IV to the Code, see Short Title note set out under section 1437aaa of this title and Tables. Section 1437f of this title, referred to in subsec. (g)(2), was in the original "section 8", and was translated as reading "section 8 of the United States Housing Act of 1937" to reflect the probable intent of Congress. |
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1 See References in Text note below. |
| United States Code, 2012 Edition, Supplement 4, Title 42 - THE PUBLIC HEALTH AND WELFARE |
| Bills and Statutes |
| United States Code |
| Y 1.2/5: |
| Title 42 - THE PUBLIC HEALTH AND WELFARE CHAPTER 130 - NATIONAL AFFORDABLE HOUSING SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE FAMILY HOMES Part A - HOPE for Homeownership of Multifamily Units Sec. 12874 - Homeownership program requirements |
| section 12874 |
| 2016 |
| January 6, 2017 |
| No |
| standard |
| 48 Stat. 1246 104 Stat. 4166, 4148 |
| Public Law 101-625 |
