Subtitle C-Rural Rental Housing Subtitle D-Other Measures to Preserve Low Income Housing NEHEMIAH HOUSING PROGRAM EXCERPT FROM HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1987 [Public Law 100-242; 101 Stat. 1951; 12 U.S.C. 17151 note] TITLE VI-NEHEMIAH HOUSING SEC. 601. STATEMENT OF PURPOSE. It is the purpose of this title (1) to encourage homeownership by families in the United States who are not otherwise able to afford homeownership; (2) to undertake a concentrated effort to rebuild the depressed areas of the cities of the United States and to create sound and attractive neighborhoods; and (3) to increase the employment of neighborhood residents. [12 U.S.C. 17151 note] SEC. 602. DEFINITIONS. For purposes of this title: (1) The term "Fund" means the Nehemiah Housing Opportunity Fund established in section 609(a). (2) The term "home" means any 1- to 4-family dwelling. Such term includes any dwelling unit in a condominium project or cooperative project consisting of not more than 4 dwelling units, any town house, and any manufactured home. (3) The term "lower income families" has the meaning given such term in section 3(b)(2) of the United States Housing Act of 1937. (4) The term "metropolitan statistical area" means a metropolitan statistical area as established by the Office of Management and Budget. (5) The term "nonprofit organization" means a private nonprofit corporation, or other private nonprofit legal entity, that is approved by the Secretary as to financial responsibility. (6) The term "Secretary" means the Secretary of Housing and Urban Development. (7) The term "State" means each of the several States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, the Northern Mariana Islands, the Trust Territory of the Pacific Islands, and any other territory or possession of the United States. (8) The term "substantial rehabilitation" means 1 Section 289(a) of Pub. L. 101-625 provides that no new grants or loans shall be made under this title after October 1, 1991. Section 289(b) of such Act repeals this title, effective on October 1, 1991. (A) rehabilitation involving costs in excess of 60 percent of the maximum sale price of a home assisted under this title in the market area in which it is located; or (B) the rehabilitation of a vacant, uninhabitable structure. (9) The term "unit of general local government" means any borough, city, county, parish, town, township, village, or other general purpose political subdivision of a State. [12 U.S.C. 17151 note] SEC. 603. ASSISTANCE TO NONPROFIT ORGANIZATIONS. (a) IN GENERAL.-The Secretary may provide assistance to nonprofit organizations to carry out Nehemiah housing opportunity programs in accordance with the provisions of this title. Such assistance shall be made in the form of grants. (b) APPLICATIONS.-Applications for assistance under this title shall be made in such form, and in accordance with such procedures, as the Secretary may prescribe. [12 U.S.C. 17151 note] SEC. 604. USE OF ASSISTANCE. (a) IN GENERAL.-Any nonprofit organization receiving assistance under this title shall use such assistance to provide loans to families purchasing homes constructed or substantially rehabilitated in accordance with a Nehemiah housing opportunity program approved under this title. (b) SPECIFIC REQUIREMENTS.-Each loan made to a family under this section shall (1) be secured by a second mortgage held by the Secretary on the property involved; (2) be in an amount not exceeding $15,000; (3) bear no interest; and (4) be repayable to the Secretary upon the sale, lease, or other transfer of such property. [12 U.S.C. 17151 note] SEC. 605. PROGRAM REQUIREMENTS. (a) IN GENERAL.-Assistance provided under this title may be used only in connection with a Nehemiah housing opportunity program of construction or substantial rehabilitation of homes. (b) FAMILY NEED.-Each family purchasing a home under this title shall (1) have a family income on the date of such purchase that is not more than whichever of the following is higher: (A) the median income for a family of 4 persons in the metropolitan statistical area involved, except that if and to the extent that the unit of general local government demonstrates to the Secretary that such action is necessary to achieve or maintain neighborhood stability, not to exceed 15 percent of the families in a project at any time during development or occupancy may have incomes up to 115 percent of such median income; or (B) the national median income for a family of 4 persons; and (2) not have owned a home during the 3-year period preceding such purchase. (c) DOWNPAYMENT. (1) Each family purchasing a home under this title shall make a downpayment of not less than 10 percent of the sale price of such home unless (A) the nonprofit organization determines a higher downpayment to be appropriate; or (B) the first mortgage on the home is held by a State or unit of general local government under a home loan program of the State or unit of general local government, and the program provides for a lower downpayment. (2) Any downpayment made under this subsection shall accrue interest from the date on which such downpayment is made through the date of settlement, at a rate not less than the passbook rate. Such interest shall be paid by the nonprofit organization involved to the family purchasing the home for which such downpayment was made. (d) LEASING PROHIBITION.-No family purchasing a home under this title may lease such home. [12 U.S.C. 17151 note] SEC. 606. TERMS AND CONDITIONS OF ASSISTANCE. (a) LOCAL CONSULTATION.-No proposed Nehemiah housing opportunity program may be approved by the Secretary under this title unless the nonprofit organization involved demonstrates to the satisfaction of the Secretary that (1) it has consulted with and received the support of residents of the neighborhood in which such program is to be located; and (2) it has the approval of each unit of general local government in which such program is to be located. (b) PROGRAM SCHEDULE.-Each nonprofit organization applying for assistance under this title shall submit to the Secretary an estimated schedule for completion of its proposed Nehemiah housing opportunity program, which schedule shall have been agreed to by each unit of general local government in which such program is to be located. (c) MINIMUM PARTICIPATION.-No nonprofit organization receiving assistance under this title may commence any construction or substantial rehabilitation (except with respect to homes to be constructed or substantially rehabilitated for the purpose of display) until not less than 25 percent of the homes to be constructed or substantially rehabilitated are contracted for sale to purchasers who intend to live in such homes and the required downpayments are made. (d) FINANCIAL FEASIBILITY.-The Secretary may not provide any assistance under this title to any nonprofit organization unless such nonprofit organization demonstrates the financial feasibility of its proposed Nehemiah housing opportunity program, including the availability of non-Federal public and private funds. (e) HOME QUALITY AND LOCATION.-A Nehemiah housing opportunity program may be approved under this title only if it provides that (1) the number of homes to be constructed or substantially rehabilitated under such program will not be less than whichever of the following is less: (A) the greater of (i) 50 homes; or (ii) 0.25 percent of the number of existing dwelling units in the unit of general local government that provides the most assistance to such program; or (B) 250 homes; except that the Secretary may waive the requirements of this paragraph for any unit of general local government if the Governor of the State or the unit of general local government requests such waiver and certifies with supporting documentation that such requirements will prevent the State or the unit of general local government from being able to use such program effectively; (2) each home constructed or substantially rehabilitated under such program will comply with (A)(i) applicable local building code standards; (ii) in any case in which there is not an applicable local building code, a nationally recognized model building code mutually agreed upon by the sponsoring nonprofit organization and the Secretary; or (iii) in the case of a manufactured home, the standards prescribed pursuant to title VI of the Housing and Community Development Act of 1974 and the installation, structural, and site requirements that would apply under title II of the National Housing Act; and (B) the energy performance requirements established under section 526 of the National Housing Act or, in the case of manufactured housing, the energy conservation requirements prescribed in accordance with section 203(b) of the National Housing Act; (3) all homes constructed or substantially rehabilitated under such program will be located in census tracts, or identifiable neighborhoods within census tracts, in which the median family income is not more than 80 percent of the median family income of the area in which such program is to be located, as such median family income and area are determined for purposes of assistance under section 8 of the United States Housing Act of 1937; (4) all homes constructed or substantially rehabilitated under such program will be concentrated in a single neighborhood and located on contiguous parcels of land, except that homes may be constructed or substantially rehabilitated in up to 4 identifiable neighborhoods that each consist of contiguous parcels of land if (A) the unit of general local government in which the project is located certifies that land cannot be made available in a single neighborhood for a program of the size required by paragraph (1); (B) the nonprofit organization submits evidence satisfactory to the Secretary that construction or substantial rehabilitation in more than 1 identifiable neighborhood will result in cost reductions through economies of scale comparable to the cost reductions achieved by other programs eligible for assistance under this title; and |