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Title 42, Chapter 69 Contents
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Sec.
5301 Congressional findings and declaration of purpose. |
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Sec.
5302 General provisions |
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Sec.
5303 Grants to States, units of general local government and
Indian tribes |
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Sec. 5304 Statement of activities and
review |
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Sec.
5305 Activities eligible for assistance |
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Sec. 5306 Allocation and distribution
of funds |
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Sec.
5307 Special purpose grants |
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Sec. 5308 Guarantee and commitment to
guarantee loans for acquisition of property |
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Sec.
5309 Nondiscrimination in programs and activities |
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Sec. 5310 Labor standards; rate of wages;
exceptions; enforcement powers |
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Sec.
5311 Remedies for noncompliance with community development
requirements |
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Sec. 5312 Use of grants for settlement
of outstanding urban renewal loans |
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Sec. 5313 Reporting requirements |
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Sec. 5314 Consultation by Secretary
with other Federal departments, etc |
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Sec.
5315 Interstate agreements or compacts; purposes |
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Sec. 5316 Transition provisions |
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Sec. 5317 Liquidation of superseded
or inactive programs |
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Sec. 5318 Urban development action grants |
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Sec. 5319 Community participation in
programs |
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Sec.
5320 Historic preservation requirements |
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Sec. 5321 Suspension of requirements
for disaster areas |
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Section 5318a (John Heinz Neighborhood
Development Program) is not included |
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Features
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Also
in this Section:
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From the U.S. Code
[Laws in effect as of January 20, 1999]
[CITE: 42USC5308]
(a)
Authority of Secretary; issuance of obligations by eligible public
entities or designated public agencies; form, denomination, maturity,
and conditions of notes or other obligations; percentage allocation
requirements
The
Secretary is authorized, upon such terms and conditions as the Secretary
may prescribe, to guarantee and make commitments to guarantee, only
to such extent or in such amounts as provided in appropriation Acts,
the notes or other obligations issued by eligible public entities,
or by public agencies designated by such eligible public entities,
for the purposes of financing
(1)
acquisition of real property or the rehabilitation of real property
owned by the eligible public entity (including such related expenses
as the Secretary may permit by regulation);
(2)
housing rehabilitation;
(3)
economic development activities permitted under paragraphs (14),
(15), and (17) of section 5305(a)
of this title;
(4)
construction of housing by nonprofit organizations for homeownership
under section 1437o(d) of this title or title VI of the Housing
and Community Development Act of 1987;
(5)
the acquisition, construction, reconstruction, or installation
of public facilities (except for buildings for the general conduct
of government); or
(6)
in the case of colonias (as such term is defined in section 916
of the Cranston-Gonzalez National Affordable Housing Act), public
works and site or other improvements.
A guarantee
under this section may be used to assist a grantee in obtaining
financing only if the grantee has made efforts to obtain such financing
without the use of such guarantee and cannot complete such financing
consistent with the timely execution of the program plans without
such guarantee. Notes or other obligations guaranteed pursuant to
this section shall be in such form and denominations, have such
maturities, and be subject to such conditions as may be prescribed
by regulations issued by the Secretary. The Secretary may not deny
a guarantee under this section on the basis of the proposed repayment
period for the note or other obligation, unless the period is more
than 20 years or the Secretary determines that the period causes
the guarantee to constitute an unacceptable financial risk. Notwithstanding
any other provision of law and subject only to the absence of qualified
applicants or proposed activities and to the authority provided
in this section, to the extent approved or provided in appropriation
Acts, the Secretary shall enter into commitments to guarantee notes
and obligations under this section with an aggregate principal amount
of $2,000,000,000 for fiscal year 1993 and $2,000,000,000 for fiscal
year 1994. Of the amount approved in any appropriation Act for guarantees
under this section in any fiscal year, the Secretary shall allocate
70 percent for guarantees for metropolitan cities, urban counties,
and Indian tribes and 30 percent for guarantees for units of general
local government in nonentitlement areas. The Secretary may waive
the percentage requirements of the preceding sentence in any fiscal
year only to the extent that there is an absence of qualified applicants
or proposed activities from metropolitan cities, urban counties,
and Indian tribes or units of general local government in nonentitlement
areas.
(b)
Prerequisites
No
guarantee or commitment to guarantee shall be made with respect
to any note or other obligation if the issuer's total outstanding
notes or obligations guaranteed under this section (excluding any
amount defeased under the contract entered into under subsection
(d)(1)(A) of this section) would thereby exceed an amount equal
to 5 times the amount of the grant approval for the issuer pursuant
to section 5306 or 5307
of this title.
(c)
Payment of principal, interest and costs
Notwithstanding
any other provision of this chapter, grants allocated to an issuer
pursuant to this chapter (including program income derived therefrom)
are authorized for use in the payment of principal and interest
due (including such servicing, underwriting, or other costs as may
be specified in regulations of the Secretary) on the notes or other
obligations guaranteed pursuant to this section.
(d)
Repayment contract; security; pledge by State
(1)
To assure the repayment of notes or other obligations and charges
incurred under this section and as a condition for receiving such
guarantees, the Secretary shall require the issuer to--
(A)
enter into a contract, in a form acceptable to the Secretary,
for repayment of notes or other obligations guaranteed hereunder;
(B)
pledge any grant for which the issuer may become eligible
under this chapter; and
(C) furnish, at the discretion of the Secretary, such
other security as may be deemed appropriate by the Secretary
in making such guarantees, including increments in local tax
receipts generated by the activities assisted under this chapter
or dispositions proceeds from the sale of land or rehabilitated
property.
(2)
To assist in assuring the repayment of notes or other obligations
and charges incurred under this section, a State shall pledge
any grant for which the State may become eligible under this chapter
as security for notes or other obligations and charges issued
under this section by any unit of general local government in
a nonentitlement area in the State.
(e)
Pledged grants for repayments
The
Secretary is authorized, notwithstanding any other provision of
this chapter, to apply grants pledged pursuant to paragraphs (1)(B)
and (2) of subsection (d) of this section to any repayments due
the United States as a result of such guarantees.
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(f)
Full faith and credit of United States pledged for payment; conclusiveness
and validity of guarantee
The
full faith and credit of the United States is pledged to the payment
of all guarantees made under this section. Any such guarantee made
by the Secretary shall be conclusive evidence of the eligibility
of the obligations for such guarantee with respect to principal
and interest, and the validity of any such guarantee so made shall
be incontestable in the hands of a holder of the guaranteed obligations.
(g)
Issuance of obligations by Secretary to Secretary of the Treasury
to satisfy authorized guarantee obligations; establishment of maturities
and rates of interest and purchase of obligations by Secretary of
the Treasury
The
Secretary may issue obligations to the Secretary of the Treasury
in an amount outstanding at any one time sufficient to enable the
Secretary to carry out his obligations under guarantees authorized
by this section. The obligations issued under this subsection shall
have such maturities and bear such rate or rates of interest as
shall be determined by the Secretary of the Treasury. The Secretary
of the Treasury is authorized and directed to purchase any obligations
of the Secretary issued under this section, and for such purposes
is authorized to use as a public debt transaction the proceeds from
the sale of any securities issued under chapter 31 of title 31,
and the purposes for which such securities may be issued under such
chapter are extended to include the purchases of the Secretary's
obligations hereunder.
(h)
Federal taxation of guaranteed obligations; grants to borrowing
entity or agency of taxable obligations for net interest costs,
etc.; limitation on amount of grant; assistance to issuer in hardship
cases
Obligations
guaranteed under this section shall be subject to Federal taxation
as provided in subsection (j) of this section. The Secretary is
authorized to make, and to contract to make, grants, in such amounts
as may be approved in appropriations Acts, to or on behalf of the
issuing eligible public entity or public agency to cover not to
exceed 30 per centum of the net interest cost (including such servicing,
underwriting, or other costs as may be specified in regulations
of the Secretary) to the borrowing entity or agency of such obligations.
The Secretary may also, to the extent approved in appropriation
Acts, assist the issuer of a note or other obligation guaranteed
under this section in the payment of all or a portion of the principal
and interest amount due under the note or other obligation, if the
Secretary determines that the issuer is unable to pay the amount
because of circumstances of extreme hardship beyond the control
of the issuer.
(i)
Omitted
(j)
Inclusion within gross income for purpose of chapter 1 of title
26 of interest paid on taxable obligations
With
respect to any obligation issued by a \2\ eligible
public entity or designated agency which is guaranteed pursuant
to this section, the interest paid on such obligation shall be included
in gross income for the purpose of chapter 1 of title 26.
\2\ So in original. Probably should be "an".
(k)
Outstanding obligations; limitation; monitoring use of guarantees
under this section
(1)
The total amount of outstanding obligations guaranteed
on a cumulative basis by the Secretary pursuant to subsection
(a) of this section shall not at any time exceed $4,500,000,000
or such higher amount as may be authorized to be appropriated
for sections 5306 and 5307
of this title for any fiscal year.
(2) The Secretary shall monitor the use of guarantees
under this section by eligible public entities. If the Secretary
finds that 50 percent of the aggregate guarantee authority has
been committed, the Secretary may--
(A)
impose limitations on the amount of guarantees any
one entity may receive in any fiscal year of $35,000,000 for
units of general local government receiving grants under section
5306(b) of this title and
$7,000,000 for units of general local government receiving grants
under section 5306(d) of
this title; or
(B)
request the enactment of legislation increasing the
aggregate limitation on guarantees under this section.
(l)
Purchase of guaranteed obligations by Federal Financing Bank
Notes
or other obligations guaranteed under this section may not be purchased
by the Federal Financing Bank.
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(m)
Limitation on imposition of fee or charge
No
fee or charge may be imposed by the Secretary or any other Federal
agency on or with respect to a guarantee made by the Secretary under
this section after February 5, 1988.
(n)
State assistance in submission of applications
Any
State that has elected under section 5306(d)(2)(A)
of this title to distribute funds to units of general local government
in nonentitlement areas may assist such units in the submission
of applications for guarantees under this section.
(o)
"Eligible public entity" defined
For
purposes of this section, the term "eligible public
entity" means any unit of general local government,
including units of general local government in nonentitlement areas.
(p)
Training and information activities relating to home guarantee program
(1)
The Secretary, in cooperation with eligible public entities, shall
carry out training and information activities with respect to
the guarantee program under this section. Such activities shall
commence not later than 1 year after November 28, 1990.
(2)
The Secretary may use amounts set aside under section 5307
of this title to carry out this subsection.
(q)
Economic development grants
(1)
Authorization
The Secretary may make grants in connection with notes or other
obligations guaranteed under this section to eligible public entities
for the purpose of enhancing the security of loans guaranteed
under this section or improving the viability of projects financed
with loans guaranteed under this section.
(2)
Eligible activities
Assistance under this subsection may be used only for the purposes
of and in conjunction with projects and activities assisted under
subsection (a) of this section.
(3)
Applications
Applications for assistance under this subsection may be submitted
only by eligible public entities, and shall be in the form and
in accordance with the procedures established by the Secretary.
Eligible public entities may apply for grants only in conjunction
with requests for guarantees under subsection (a) of this section.
(4)
Selection criteria
The Secretary shall establish criteria for awarding assistance
under this subsection. Such criteria shall include--
(A)
the extent of need for such assistance;
(B)
the level of distress in the community to be served and in the
jurisdiction applying for assistance;
(C)
the quality of the plan proposed and the capacity or potential
capacity of the applicant to successfully carry out the plan;
and
(D)
such other factors as the Secretary determines to be
appropriate.
(r)
Guarantee of obligations backed by loans
(1)
Authority
The Secretary may, upon such terms and conditions as the Secretary
considers appropriate, guarantee the timely payment of the principal
of and interest on such trust certificates or other obligations
as may--
(A) be offered by the Secretary or by any other offeror
approved for purposes of this subsection by the Secretary; and
(B) be based on and backed by a trust or pool composed
of notes or other obligations guaranteed or eligible for guarantee
by the Secretary under this section.
(2)
Full faith and credit
To the same extent as provided in subsection (f) of this section,
the full faith and credit of the United States is pledged to the
payment of all amounts that may be required to be paid under any
guarantee made by the Secretary under this subsection.
(3)
Subrogation
If the Secretary pays a claim under a guarantee made under this
section, the Secretary shall be subrogated for all the rights
of the holder of the guaranteed certificate or obligation with
respect to such certificate or obligation.
(4)
Effect of laws
No State or local law, and no Federal law, shall preclude or limit
the exercise by the Secretary of--
(A)
the power to contract with respect to public offerings and other
sales of notes, trust certificates, and other obligations guaranteed
under this section upon such terms and conditions as the Secretary
deems appropriate;
(B) the right to enforce any such contract by any means
deemed appropriate by the Secretary; and
(C)
any ownership rights of the Secretary, as applicable, in notes,
certificates, or other obligations guaranteed under this section,
or constituting the trust or pool against which trust certificates,
or other obligations guaranteed under this section, are offered.
(Pub.
L. 93-383, title I, Sec. 108, Aug. 22, 1974, 88 Stat. 647;
Pub. L. 95-128, title I, Sec. 108, Oct. 12, 1977, 91 Stat. 1123;
Pub. L. 96-399, title I, Sec. 108, Oct. 8, 1980, 94 Stat. 1619;
Pub. L. 97-35, title III, Sec. 309(i), Aug. 13, 1981, 95 Stat. 397;
Pub. L. 98-181, title I, Sec. 108, Nov. 30, 1983, 97 Stat. 1168;
Pub. L. 98-479, title II, Secs. 203(l)(2), 204(k)(1), Oct. 17, 1984,
98 Stat. 2231, 2233;
Pub. L. 99-272, title III, Sec. 3002(a), Apr. 7, 1986, 100 Stat.
102;
Pub. L. 100-242, title V, Sec. 514, Feb. 5, 1988, 101 Stat. 1930;
Pub. L. 101- 625, title IX, Secs. 901(b), 910(b)-(g), Nov. 28, 1990,
104 Stat. 4385, 4389-4391;
Pub. L. 102-550, title VIII, Sec. 801(b), Oct. 28, 1992, 106 Stat.
3843;
Pub. L. 103-233, title II, Secs. 231, 232(a)(1), 233, Apr. 11, 1994,
108 Stat. 366, 368;
Pub. L. 104-120, Sec. 3(b), Mar. 28, 1996, 110 Stat. 835.)
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