HOPE HOMEOWNERSHIP PROGRAMS EXCERPTS FROM CRANSTON-GONZALEZ NATIONAL AFFORDABLE HOUSING ACT [Public Law 101-625; 104 Stat 4148; 42 U.S.C. 12871 et seq.] TITLE IV-HOMEOWNERSHIP AND OPPORTUNITY FOR PEOPLE EVERYWHERE PROGRAMS SEC. 401. SHORT TITLE. This.title may be cited as the "Homeownership and Opportunity Through HOPE Act". [42 U.S.C. 1437aaa note] Subtitle A-HOPE for Public and Indian Housing Homeownership SEC. 411. HOPE FOR PUBLIC AND INDIAN HOUSING HOMEOWNERSHIP. The United States Housing Act of 1937 is amended by adding at the end the following new title: "TITLE III-HOPE FOR PUBLIC AND INDIAN HOUSING HOMEOWNERSHIP 1 Subtitle B-HOPE for Homeownership of Multifamily Units SEC. 421. PROGRAM AUTHORITY. (a) IN GENERAL.-The Secretary is authorized to make (1) planning grants to enable applicants to develop homeownership programs; and (2) implementation grants to enable applicants to carry out homeownership programs. (b) AUTHORITY TO RESERVE HOUSING ASSISTANCE.-In connection with a grant under this subtitle, the Secretary may reserve authority to provide assistance under section 8 of the United States Housing Act of 1937 to the extent necessary to provide rental assistance for a nonpurchasing tenant who resides in the project on the date the Secretary approves the application for an implementation grant, for use by the tenant in another project. 1 Title III of the United States Housing Act of 1937, 42 U.S.C. 1437aaa et seq., contains the HOPE for public and Indian housing homeownership provisions. See ante, this part. (c) AUTHORIZATION OF APPROPRIATIONS.-There is authorized to be appropriated for grants under this subtitle $51,000,000 for fiscal year 1991 and $280,000,000 for fiscal year 1992. Any amounts appropriated pursuant to this subsection shall remain available until expended. [42 U.S.C. 12871] SEC. 422. PLANNING GRANTS. (a) GRANTS.-The Secretary is authorized to make planning grants to applicants for the purpose of developing homeownership programs under this subtitle. The amount of a planning grant under this section may not exceed $200,000, except that the Secretary may for good cause approve a grant in a higher amount. (b) ELIGIBLE ACTIVITIES.-Planning grants may be used for activities to develop homeownership programs (which may include programs for cooperative ownership), including (1) development of resident management corporations and resident councils; (2) training and technical assistance of applicants related to the development of a specific homeownership program; (3) studies of the feasibility of a homeownership program; (6) planning for economic development, job training, and selfsufficiency activities that promote economic self-sufficiency for homebuyers and homeowners under the homeownership program; (7) development of security plans; and (8) preparation of an application for an implementation grant under this subtitle. (c) APPLICATION. (1) FORM AND PROCEDURES.-An application for a planning 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 a planning grant, specifying the activities proposed to be carried out, the schedule for completing the activities, the personnel necessary to complete the activities, and the amount of the grant requested; (B) a description of the applicant and a statement of its qualifications; (C) identification and description of the eligible property involved, and a description of the composition of the tenants, including family size and income; (D) a certification by the public official responsible for submitting the comprehensive housing affordability strategy under section 105 of the Cranston-Gonzalez National Affordable Housing Act 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 en actment of this Act, 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 (E) a certification that the applicant will comply with the requirements of the Fair Housing Act, title VI of the Civil Rights Act of 1964, section 504 of the Rehabilitation Act of 1973, and the Age Discrimination Act of 1975, and will affirmatively further fair housing. (d) SELECTION CRITERIA.-The Secretary shall, by regulation, establish selection criteria for a national competition for assistance under this section, which shall include (1) the qualifications or potential capabilities of the applicant; (2) the extent of tenant interest in the development of a homeownership program for the property; (3) the potential of the applicant for developing a successful and affordable homeownership program and the suitability of the property for homeownership; (4) national geographic diversity among housing for which applicants are selected to receive assistance; and (5) such other factors that the Secretary shall require that (in the determination of the Secretary) are appropriate for purposes of carrying out the program established by this subtitle in an effective and efficient manner. [42 U.S.C. 12872] SEC. 423. 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 subtitle. (b) ELIGIBLE ACTIVITIES.-Implementation grants may be used for activities to carry out homeownership programs (including programs for cooperative ownership), including the following activities: (1) Architectural and engineering work. (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 subtitle. (3) Rehabilitation of any property covered by the homeownership program, in accordance with standards established by the Secretary. (4) Administrative costs of the applicant, which may not exceed 15 percent of the amount of the assistance provided under this section. (5) Development of resident management corporations and resident management councils, but only if the applicant has not received assistance under section 322 for such activities. (6) Counseling and training of homebuyers and homeowners under the homeownership program. (7) Relocation of tenants who elect to move. (8) Any necessary temporary relocation of tenants during rehabilitation. 1 The date of enactment was November 28, 1990. (9) 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. (10) Funding of operating expenses and replacement reserves of the property covered by the homeownership program. (11) Legal fees. (12) Defraying costs for the ongoing training needs of the recipient that are related to developing and carrying out the homeownership program. (13) Economic development activities that promote economic self-sufficiency of homebuyers, residents, and homeowners under 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 106(b) or section 106(d) of the Housing and Community Development Act of 1974; (B) payment of administrative expenses, as defined by the Secretary, from non-Federal resources, including funds from a grant made under section 106(b) or section 106(d) of the Housing and Community Development Act of 1974; (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 subtitle; (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 subtitle; or (F) such other in-kind contributions as the Secretary may approve. 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. (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 8 of the United States Housing Act of 1937, 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 324 and the other requirements of this subtitle, 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 324(b); (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) and of other resources that are expected to be made available in support of the homeownership program; (G) identification and description of the financing proposed for any (i) rehabilitation and (ii) acquisition (I) of the property, by an entity for transfer to eligible families, and (II) by eligible families of ownership interests in, or shares representing, units in the project; (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; (I) the proposed sales prices, if any, and terms to eligible families; (J) any proposed restrictions on the resale of units under a homeownership program; (K) identification and description of the entity that will operate and manage the property; (L) a certification by the public official responsible for submitting the comprehensive housing affordability strategy under section 105 of the Cranston-Gonzalez National Affordable Housing Act 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 enactment of this Act, 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, title VI of the Civil Rights Act of 1964, section 504 of the Rehabilitation Act of 1973, and the Age Discrimination Act of 1975, and will affirmatively further fair housing. The date of enactment was November 28, 1990. |