From
the U.S. Code Online via GPO Access
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[Laws in effect as of January 6, 1999]
[Document not affected by Public Laws enacted between
January 6, 1999 and October 26, 2000]
[CITE: 42USC12805]
TITLE
42--THE PUBLIC HEALTH AND WELFARE
CHAPTER
130--NATIONAL AFFORDABLE HOUSING
SUBCHAPTER
II--INVESTMENT IN AFFORDABLE HOUSING
Part
D--Specified Model Programs
Sec.
12805. Sweat equity model program
Self-Help Homeownership Opportunity Program (SHOP) Statute
NOTE
ASSISTANCE FOR SELF-HELP HOUSING PROVIDERS, 42 USC 12805 note
Pub.
L. 104-120, Sec. 11, Mar. 28, 1996, 110 Stat. 841, as amended by
Pub. L. 105-276, title V, Sec. 599E(a), Oct. 21, 1998, 112 Stat.
2663, Pub. L. 106-569, Sec. 202 Dec. 27, 2000 provided that:
- Grant
Authority. - The Secretary of Housing and Urban Development may,
to the extent amounts are available to carry out this section
and the requirements of this section are met, make grants for
use in accordance with this section to national and regional organizations
and consortia that have experience in providing or facilitating
self-help housing homeownership opportunities.
- Goals
and Accountability. - In making grants under this section, the
Secretary shall take such actions as may be necessary to ensure
that -
- assistance
provided under this section is used to facilitate and encourage
innovative homeownership opportunities through the provision
of self-help housing, under which the homeowner contributes
a significant amount of sweat equity toward the construction
of the new dwelling;
- assistance
provided under this section for land acquisition and infrastructure
development results in the development of not less than 4,000
new dwellings;
- the
dwellings constructed in connection with assistance provided
under this section are quality dwellings that comply with
local building and safety codes and standards and are available
at prices below the prevailing market prices;
- the
provision of assistance under this section establishes and
fosters a partnership between the Federal Government and organizations
and consortia, resulting in efficient development of affordable
housing with minimal governmental intervention, limited governmental
regulation, and significant involvement by private entities;
- activities
to develop housing assisted pursuant to this section involve
community participation in which volunteers assist in the
construction of dwellings; and
- dwellings
are developed in connection with assistance under this section
on a geographically diverse basis, which includes areas having
high housing costs, rural areas, and areas underserved by
other homeownership opportunities that are populated by low-income
families unable to otherwise afford housing.
If, at any time, the Secretary determines that the goals under
this subsection cannot be met by providing assistance in accordance
with the terms of this section, the Secretary shall immediately
notify the applicable Committees in writing of such determination
and any proposed changes for such goals or this section.
-
National Competition. - The Secretary shall select organizations
and consortia referred to in subsection (a) to receive grants
through a national competitive process, which the Secretary shall
establish.
- Use.
-
- Purpose.
- Amounts from grants made under this section, including any
recaptured amounts, shall be used only for eligible expenses
in connection with developing new decent, safe, and sanitary
nonluxury dwellings in the United States for families and
persons who otherwise would be unable to afford to purchase
a dwelling.
- Eligible
expenses. - For purposes of paragraph (1), the term 'eligible
expenses' means costs only for the following activities:
- Land
acquisition. - Acquiring land (including financing and
closing costs)., which may include reimbursing an organization,
consortium, or affiliate, upon approval of any required
environmental review, for nongrant amounts of the organization,
consortium, or affiliate advanced before such review to
acquire land.
- Infrastructure
improvement. - Installing, extending,
constructing, rehabilitating, or otherwise improving utilities
and other infrastructure.
Such term does not include any costs for the rehabilitation,
improvement, or construction of dwellings.
- Establishment
of Grant Fund. -
- In
general. - Any amounts from any grant made under this section
shall be deposited by the grantee organization or consortium
in a fund that is established by such organization or consortium
for such amounts, administered by such organization or consortium,
and available for use only for the purposes under subsection
(d). Any interest, fees, or other earnings of the fund shall
be deposited in the fund and shall be considered grant amounts
for purposes of this section.
- Assistance
to affiliates. - Any organization or consortia that receives
a grant under this section may use amounts in the fund established
for such organization or consortia pursuant to paragraph (1)
for the purposes under subsection (d) by providing assistance
from the fund to local affiliates of such organization or
consoria. (sic)
- Requirements
for Assistance. - The Secretary may make a grant to an organization
or consortium under subsection (a) only pursuant to -
- an
expression of interest by such organization or consortia to
the Secretary for a grant for such purposes;
- a
determination by the Secretary that the organization or consortia
has the capability and has obtained financial commitments
(or has the capacity to obtain financial commitments) necessary
to -
- develop
not less than 30 dwellings in connection with the grant
amounts; and
- otherwise
comply with a grant agreement under subsection (i); and
- a
grant agreement entered into under subsection (i).
- Repealed.
Pub. L. 105-276, title V, Sec. 599E(a)(6), Oct. 21, 1998, 112
Stat. 2664.)
- Geographical
Diversity. - In making grants under subsection (a), the Secretary
shall ensure that grants are provided and grant amounts are used
in a manner that results in national geographic diversity among
housing developed using grant amounts under this section.
- Grant
Agreement. - A grant under this section shall be made only pursuant
to a grant agreement entered into by the Secretary and the organization
or consortia receiving the grant, which shall-
- require
such organization or consortia to use grant amounts only as
provided in this section;
- provide
for the organization or consortia to develop a specific and
reasonable number of dwellings using the grant amounts, which
number shall be established taking into consideration costs
and economic conditions in the areas in which the dwellings
will be developed, but in no case shall be less than 30;
- require
the organization or consortia to use the grant amounts in
a manner that leverages other sources of funding (other than
grants under this section), including private or public funds,
in developing the dwellings;
- require
the organization or consortia to comply with the other provisions
of this section;
- provide
that the Secretary shall recapture any grant amounts provided
to the organization that are not used within 24 months after
such amounts are first disbursed to the organization or consortia
except that such period shall be 36 months, in the case of
grant amounts from amounts made available for fiscal year
1996 to carry out this section and in the case of a grant
amounts provided to a local affiliate of the organization
or consortia that is developing five or more dwellings in
connection with such grant amounts; and
- contain
such other terms as the Secretary may require to provide for
compliance with subsection (b) and the requirements of this
section.
- Fulfillment
of Grant Agreement. - If the Secretary determines that an organization
or consortia awarded a grant under this section has not, within
24 months after grant amounts are first made available to the
organization or consortia (or, in the case of grant amounts from
amounts made available for fiscal year 1996 to carry out this
section and grant amounts provided to a local affiliate of the
organization or consortia that is developing five or more dwellings
in connection with such grant amounts, within 36 months), substantially
fulfilled the obligations under the grant agreement, including
development of the appropriate number of dwellings under the agreement,
the Secretary shall use any such undisbursed amounts remaining
from such grant for other grants in accordance with this section.
- Records
and Audits. - During the period beginning upon the making of a
grant under this section and ending upon close-out of the grant
under subsection (l) -
- the
organization awarded the grant shall keep such records and
adopt such administrative practices as the Secretary may require
to ensure compliance with the provisions of this section and
the grant agreement; and
- the
Secretary and the Comptroller General of the United States,
and any of their duly authorized representatives, shall have
access for the purpose of audit and examination to any books,
documents, papers, and records of the grantee organization
or consortia and its affiliates that are pertinent to the
grant made under this section.
- Close-Out.
- The Secretary shall close out a grant made under this section
upon determining that the aggregate amount of any assistance provided
from the fund established under subsection (e)(1) by the grantee
organization or consortium exceeds the amount of the grant. For
purposes of this paragraph, any interest, fees, and other earnings
of the fund shall be excluded from the amount of the grant.
- Environmental
Review. - A grant under this section shall be considered to be
funds for a special project for purposes of section 305(c) of
the Multifamily Housing Property Disposition Reform Act of 1994
(42 U.S.C. 3547).
- Report
to Congress. - Not later than 90 days after close-out of all grants
under this section is completed, the Secretary shall submit a
report to the applicable Committees describing the grants made
under this section, the grantees, the housing developed in connection
with the grant amounts, and the purposes for which the grant amounts
were used.
- Definitions.
- For purposes of this section, the following definitions shall
apply:
- Applicable
committees. - The term 'applicable Committees' means the Committee
on Banking and Financial Services of the House of Representatives
and the Committee on Banking, Housing, and Urban Affairs of
the Senate.
- Secretary.
- The term 'Secretary' means the Secretary of Housing and
Urban Development.
- United
states. - The term 'United States' includes the States of
the United States, the District of Columbia, the Commonwealth
of Puerto Rico, the Commonwealth of the Northern Mariana Islands,
Guam, the Virgin Islands, American Samoa, and any other territory
or possession of the United States.
- Authorization
of Appropriations. - There are authorized to be appropriated to
carry out this section such sums as may be necessary for fiscal
year 2001.
- Regulations.
- The Secretary shall issue any final regulations necessary to
carry out this section not later than 30 days after the date of
the enactment of this Act (Mar. 28, 1996). The regulations shall
take effect upon issuance and may not exceed, in length, 5 full
pages in the Federal Register.''
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