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: 42USC12746]
TITLE
42--THE PUBLIC HEALTH AND WELFARE
CHAPTER 130--NATIONAL AFFORDABLE HOUSING
SUBCHAPTER II--INVESTMENT IN AFFORDABLE HOUSING
Part A--HOME Investment Partnerships
Sec. 216. Participation by States and local governments
The Secretary shall designate a State or unit of general local government
to be a participating jurisdiction when it complies with procedures
that the Secretary shall establish by regulation, which procedures
shall only provide for the following:
- Allocation
Not
later than 20 days after funds to carry out this part become
available (or, during the first year after November 28, 1990,
not later than 20 days after (A) funds to carry out this part
are provided in an appropriations Act, or (B) regulations to
implement this part are promulgated, whichever is later), the
Secretary shall allocate funds in accordance with section 12747
of this title and promptly notify each jurisdiction receiving
a formula allocation of its allocation amount. If a jurisdiction
is not already a participating jurisdiction, the Secretary shall
inform the jurisdiction in writing how the jurisdiction may
become a participating jurisdiction.
- Consortia
A
consortium of geographically contiguous units of general local
government shall be deemed to be a unit of general local government
for purposes of this subchapter if the Secretary determines
that the consortium--
- has sufficient authority and administrative capability
to carry out the purposes of this subchapter on behalf of
its member jurisdictions, and
- will, according to a written certification by the State
(or States, if the consortium includes jurisdictions in
more than one State), direct its activities to alleviation
of housing problems within the State or States.
- Eligibility
- Except
as provided in paragraph (10), a jurisdiction receiving
a formula allocation under section 12747 of this title shall
be eligible to become a participating jurisdiction if its
formula allocation is $750,000 or greater, or if the Secretary
finds that--
- the jurisdiction has a local housing authority and
has demonstrated a capacity to carry out provisions
of this part, and
- the State has authorized the Secretary to transfer
to the jurisdiction a portion of the State's allocation
that is equal to or greater than the difference between
the jurisdiction's formula allocation and $750,000,
or the State or jurisdiction has made available from
the State's or jurisdiction's own sources an equal amount
for use by the jurisdiction in conformance with the
provisions of this part.
- If
a jurisdiction has met the requirements of subparagraph
(A), the jurisdiction's formula allocation for a fiscal
year shall subsequently be deemed to equal the sum of the
jurisdiction's allocation under section 12747(a)(1) of this
title and the amount made available to the jurisdiction
under subparagraph (A)(ii).
- Notification
If
an eligible jurisdiction notifies the Secretary in writing,
not later than 30 days after receiving notification under paragraph
(1), of its intention to become a participating jurisdiction,
the Secretary shall reserve an amount equal to the jurisdiction's
allocation (plus any reallocations for which the jurisdiction
is eligible under section 12747(d)(1) of this title) pending
the jurisdiction's designation as a participating jurisdiction.
The Secretary shall reallocate, in accordance with paragraph
(6) of this section, any funds reserved under the previous sentence
if the Secretary determines that the jurisdiction will not meet
the requirements for designation as a participating jurisdiction
within a reasonable period of time.
- Submission
of strategy
Not
later than 90 days after providing notification under paragraph
(4), an eligible jurisdiction shall submit to the Secretary
a comprehensive housing affordability strategy in accordance
with section 12705 of this title.
- Reallocation
If
the Secretary determines that a jurisdiction has failed to meet
the requirements of the previous 3 paragraphs or if the Secretary,
after providing for amendments and resubmissions in accordance
with section 12705(c)(3) of this title, disapproves the jurisdiction's
comprehensive housing affordability strategy, the Secretary
shall reallocate any funds reserved for the jurisdiction as
follows:
- State
If
a State has failed to meet the requirements, the Secretary
shall--
- make any funds reserved for the State available by
direct reallocation among applications submitted by
units of general local government within the State or
consortia that include units of general local government
within the State, insofar as approvable applications
meeting the selection criteria under section 12747(c)
of this title are received within 12 months after the
funds become available for the direct reallocation,
and
- reallocate the remainder by formula in accordance
with section 12747(b) of this title.
- Local
If
a unit of general local government has failed to meet the
requirements and is located in a State that is a participating
jurisdiction, the Secretary shall reallocate to the State
any funds reserved for the locality, with preference going
to the provision of affordable housing within the locality.
- Direct
reallocation
If
a unit of general local government has failed to meet the
requirements and is located in a State that is not a participating
jurisdiction, the Secretary shall--
- make any funds reserved for the locality available
for use within the State by direct reallocation among
units of general local government and community housing
development organizations, insofar as approvable applications
meeting the selection criteria under section 12747(c)
of this title are received within 12 months after the
funds become available for the direct reallocation with
priority going to applications for affordable housing
within the locality, and
- reallocate the remainder in accordance with section
12747(b) of this title.
- Certain
jurisdictions deemed to be participating jurisdictions
If
a State or unit of general local government is meeting the
requirements of paragraphs (3), (4), and (5), it shall be
deemed to be a participating jurisdiction for purposes of
reallocation under this paragraph.
- Designation
The
Secretary shall designate an eligible jurisdiction to be a participating
jurisdiction as soon as its comprehensive housing affordability
strategy is approved in accordance with section 12705 of this
title.
- Continuous
designation
Once
a State or unit of general local government is designated a
participating jurisdiction, it shall remain a participating
jurisdiction for subsequent fiscal years, except as provided
in paragraph (9). The provisions of paragraphs (3) through (6)
shall not apply to participating jurisdictions.
- Revocation
The
Secretary may revoke a jurisdiction's designation as a participating
jurisdiction if--
- the Secretary finds, after reasonable notice and opportunity
for hearing, that the jurisdiction is unwilling or unable
to carry out the provisions of this subchapter, or
- the jurisdiction's allocation falls below $750,000 for
3 consecutive years, below $625,000 for 2 consecutive years,
or the jurisdiction does not receive a formula allocation
of $500,000 or more in any 1 year, except as provided in
paragraph (10).
If
a jurisdiction's designation as a participating jurisdiction
is
revoked, any remaining line of credit in the jurisdiction's
HOME
Investment Trust Fund established under section 12748 of this
title
shall be reallocated in accordance with paragraph (6) of this
section.
- Threshold
reduction
If
the amount appropriated pursuant to section 12724 of this title
for any fiscal year is less than $1,500,000,000, then this section
shall be applied during that year--
- by substituting "$500,000'' for "$750,000''
both places it appears in paragraph (3); and
- by substituting "$500,000'', "$410,000'', and
"$335,000'' for "$750,000'', "$625,000'',
and "$500,000'', respectively, where they appear in
paragraph (9).
(Pub.
L. 101-625, title II, Sec. 216, Nov. 28, 1990, 104 Stat. 4103; Pub.
L. 102-550, title II, Sec. 202(a), Oct. 28, 1992, 106 Stat. 3751.)
Amendments
1992--Par. (3)(A). Pub. L. 102-550, Sec. 202(a)(1), substituted
"Except as provided in paragraph (10), a jurisdiction'' for
"A jurisdiction''.
Par.
(9)(B). Pub. L. 102-550, Sec. 202(a)(2), inserted ", except
as
provided in paragraph (10)'' after "in any 1 year''.
Par.
(10). Pub. L. 102-550, Sec. 202(a)(3), added par. (10).
Effective
Date of 1992 Amendment
Amendment by Pub. L. 102-550 applicable to unexpended funds allocated
under subchapter II of this chapter in fiscal year 1992, except
as otherwise specifically provided, see section 223 of Pub. L. 102-550,
set out as a note under section 12704 of this title.
Applicability
of Grant Thresholds
Section 202(c) of Pub. L. 102-550 provided that: "Notwithstanding
any other provision of law, the grant thresholds provided for in
section 216 [42 U.S.C. 12746], as amended by this section, and the
grant thresholds provided for in section 217(b) of the Cranston-Gonzalez
National Affordable Housing Act [42 U.S.C. 12747(b)], as amended
by this section, shall apply.''
Section Referred to in Other Sections
This section is referred to in sections 12704, 12747, 12750 of this
title.
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