Chapter 8, Subchapter I, Section 1437c, Subsection (c) · 42 U.S.C. Chapter 8

Contents

(a) Contract authorization; amounts; use as security for obligations of public housing agency; use of existing structures3 changes
(b) Maximum amount of contributions; regulations; criteria for rates of contribution
(c) Limitation on aggregate contractual contributions; contracts for preliminary loans; payments of annual contributions; limitations on specific authorities19 changes
(d) Scope of contracts for loans or annual contributions
(e) Local determination of need as prerequisite for contracts for preliminary loans, and contracts for loans or annual contributions; notice2 changes
(f) Modification by Secretary of terms of contracts, etc.; limitations; amendment or supersedure of contracts for annual contributions or loans
(g) Pledge of annual contributions as guarantee of payment of obligations issued by public housing agency; exception
(h) Audits3 changes
(i) Prohibition on use of funds2 changes

(c)

(1)The Secretary may enter into contracts for annual contributions aggregating not more than $7,875,049,000 per annum, which amount shall be increased by $1,494,400,000 on October 1, 1980, and by $906,985,000 on October 1, 1981. The additional authority to enter into such contracts provided on or after October 1, 1980, shall be effective only in such amounts as may be approved in appropriation Acts. In addition, the aggregate amount which may be obligated over the duration of the contracts may not exceed $31,200,000,000 with respect to the additional authority provided on October 1, 1980, and $18,087,370,000 with respect to the additional authority provided on October 1, 1981.

(2)The Secretary shall enter into only such new contracts for preliminary loans as are consistent with the number of dwelling units for which contracts for annual contributions may be entered into.

(3)The full faith and credit of the United States is solemnly pledged to the payment of all annual contributions contracted for pursuant to this section, and there are hereby authorized to be appropriated in each fiscal year, out of any money in the Treasury not otherwise appropriated, the amounts necessary to provide for such payments.

(4)All payments of annual contributions pursuant to this section shall be made out of any funds available for purposes of this chapter when such payments are due, except that funds obtained through the issuance of obligations pursuant to section 1437b(b) of this title (including repayments or other realizations of the principal of loans made out of such funds) shall not be available for the payment of such annual contributions.

(5)During such period as the Secretary may prescribe for starting construction, the Secretary may approve the conversion of public housing development authority for use under section 1437g of this title or for use for the acquisition and rehabilitation of property to be used in public housing, if the public housing agency, after consultation with the unit of local government, certifies that such assistance would be more effectively used for such purpose, and if the total number of units assisted will not be less than 90 per centum of the units covered by the original reservation.

(6)The aggregate amount of budget authority which may be obligated for contracts for annual contributions and for grants under section 1437o of this title is increased by $9,912,928,000 on October 1, 1983, and by such sums as may be approved in appropriation Acts on October 1, 1984. The aggregate amount of budget authority that may be obligated for contracts for annual contributions for assistance under section 1437f of this title, for contracts referred to in paragraphs (7)(A)(iv) and (7)(B)(iv), for grants for public housing, for comprehensive improvement assistance, and for amendments to existing contracts, is increased (to the extent approved in appropriation Acts) by $7,167,000,000 on October 1, 1987, and by $7,300,945,000 on October 1, 1988. The aggregate amount of budget authority that may be obligated for assistance referred to in paragraph (7) is increased (to the extent approved in appropriation Acts) by $16,194,000,000 on October 1, 1990, and by $14,709,400,000 on October 1, 1991. The aggregate amount of budget authority that may be obligated for assistance referred to in paragraph (7) is increased (to the extent approved in appropriation Acts) by $14,710,990,520 on October 1, 1992, and by $15,328,852,122 on October 1993.

(7)

(A)Using the additional budget authority provided under paragraph (6) and the balances of budget authority that become available during fiscal year 1993, the Secretary shall, to the extent approved in appropriation Acts, reserve authority to enter into obligations aggregating—

(i)for public housing grants under subsection (a)(2), not more than $830,900,800, of which amount not more than $257,320,000 shall be available for Indian housing;

(ii)for assistance under section 1437f of this title, not more than $1,977,662,720, of which $20,000,000 shall be available for 15-year contracts for project-based assistance to be used for a multicultural tenant empowerment and homeownership project located in the District of Columbia, except that assistance provided for such project shall not be considered for purposes of the percentage limitations under section 1437f(i)(2) of this title; except that not more than 49 percent of any amounts appropriated under this clause may be used for vouchers under section 1437f(o) of this title;

(iii)for comprehensive improvement assistance grants under section 1437l(k) of this title, not more than $3,100,000,000;

(iv)for assistance under section 1437f of this title for property disposition, not more than $93,032,000;

(v)for assistance under section 1437f of this title for loan management, not more than $202,000,000;

(vi)for extensions of contracts expiring under section 1437f of this title, not more than $6,746,135,000, which shall be for 5-year contracts for assistance under section 1437f of this title and for loan management assistance under such section;

(vii)for amendments to contracts under section 1437f of this title, not more than $1,350,000,000;

(viii)for public housing lease adjustments and amendments, not more than $83,055,000;

(ix)for conversions from leased housing contracts under section 1421b of this title (as in effect immediately before August 22, 1974) to assistance under section 1437f of this title, not more than $12,767,000; and

(x)for grants under section 1437v of this title for revitalization of severely distressed public housing, not more than $300,000,000.

(B)Using the additional budget authority provided under paragraph (6) and the balances of budget authority that become available during fiscal year 1994, the Secretary shall, to the extent approved in appropriation Acts, reserve authority to enter into obligations aggregating—

(i)for public housing grants under subsection (a)(2), not more than $865,798,634, of which amount not more than $268,127,440 shall be available for Indian housing;

(ii)for assistance under section 1437f of this title, not more than $2,060,724,554, of which $20,000,000 shall be available for 15-year contracts for project-based assistance to be used for a multicultural tenant empowerment and homeownership project located in the District of Columbia, except that assistance provided for such project shall not be considered for purposes of the percentage limitations under section 1437f(i)(2) of this title; except that not more than 49 percent of any amounts appropriated under this clause may be used for vouchers under section 1437f(o) of this title;

(iii)for comprehensive improvement assistance grants under section 1437l(k) of this title, not more than $3,230,200,000;

(iv)for assistance under section 1437f of this title for property disposition, not more than $96,939,344;

(v)for assistance under section 1437f of this title for loan management, not more than $210,484,000;

(vi)for extensions of contracts expiring under section 1437f of this title, not more than $7,029,472,670, which shall be for 5-year contracts for assistance under section 1437f of this title and for loan management assistance under such section;

(vii)for amendments to contracts under section 1437f of this title, not more than $1,406,700,000;

(viii)for public housing lease adjustments and amendments, not more than $86,543,310;

(x)for grants under section 1437v of this title for revitalization of severely distressed public housing, not more than $312,600,000.

(C)

(i)Any amount available for the conversion of a project to assistance under section 1437f(b)(1) of this title, if not required for such purpose, shall be used for assistance under section 1437f(b)(1) of this title.

(ii)Any amount available for assistance under section 1437f of this title for property disposition, if not required for such purpose, shall be used for assistance under section 1437f(b)(1) of this title.

(8)Any amount available for Indian housing under subsection (a) that is recaptured shall be used only for such housing.

United States Government work; public domain under 17 U.S.C. § 105.

Defined terms · 88

Show every defined term

acquisition cost
means the amount prudently required to be expended by a public housing agency in acquiring property for a low-income housing project.
adjusted income
means, with respect to a family, the amount (as determined by the public housing agency or owner) of the income of the members of the family residing in a dwelling unit or the persons on a lease, after any deductions from income as follows: The Secretary shall annually calculate the amounts of the deductions under subparagraphs (A) and (B), as such amounts may have been previously calculated, by applying an inflationary factor as the Secretary shall, by regulation, establish, except that the actual deduction determined for each year shall be established by rounding such amount to the next lowest multiple of $25.
adult
means a person who is 18 years of age or older, or who has been convicted of a crime as an adult under any Federal, State, or tribal law.
affordable housing
means rental or homeownership dwelling units that—
agent employed to manage the property that has an identity of interest
means an entity—
applicable Secretary
means the applicable Secretary, a public housing agency, or another entity that determines the eligibility of an individual for financial assistance.
applicant
means a public housing agency or any other agency responsible for administering assistance under this section.
assisted living facility
has the meaning given that term in section 232(b) of the National Housing Act (12 U.S.C. 1715w(b)), except that such a facility may be contained within a portion of a larger multifamily housing project.
Capital Fund
means the fund established under section 1437g(d) of this title.
congregate housing
means low-rent housing with which there is connected a central dining facility where wholesome and economical meals can be served to occupants.
controlled substance
has the meaning given the term in section 802 of title 21.
covered agency
means a public housing agency or such other entity that administers Federal housing assistance for—
covered family
means a family that receives assistance under section 1437f or 1437g of this title and is enrolled in the Pilot Program.
covered housing assistance
means—
currently engaging in the illegal use of a controlled substance
means the illegal use of a controlled substance that occurred recently enough to justify a reasonable belief that an applicant’s illegal use of a controlled substance is current or that continuing illegal use of a controlled substance by the applicant is a real and ongoing problem.
debt service
means the required payments for principal and interest made with respect to a mortgage secured by housing assisted under this chapter;
development
means any or all undertakings necessary for planning, land acquisition, demolition, construction, or equipment, in connection with a low-income housing project.
displaced person
means a person displaced by governmental action, or a person whose dwelling has been extensively damaged or destroyed as a result of a disaster declared or otherwise formally recognized pursuant to Federal disaster relief laws.
drug abuse treatment facility
means an entity that—
drug-related criminal activity
means the illegal manufacture, sale, distribution, use, or possession with intent to manufacture, sell, distribute, or use, of a controlled substance (as defined in section 802 of title 21);
economic self-sufficiency program
means any program designed to encourage, assist, train, or facilitate the economic independence of participants and their families or to provide work for participants, including programs for job training, employment counseling, work placement, basic skills training, education, workfare, financial or household management, apprenticeship, or other activities as the Secretary may provide.
elderly person
means a person who is at least 62 years of age.
eligibility
means the eligibility of each family member.
eligibility event
means, with respect to a multifamily housing project, the prepayment of the mortgage on such housing project, the voluntary termination of the insurance contract for the mortgage for such housing project (including any such mortgage prepayment during fiscal year 1996 or a fiscal year thereafter or any insurance contract voluntary termination during fiscal year 1996 or a fiscal year thereafter), the termination or expiration of the contract for rental assistance under this section for such housing project (including any such termination or expiration during fiscal years after fiscal year 1994 prior to the effective date of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 2001), or the transaction under which the project is preserved as affordable housing, that, under paragraphs (3) and (4) of section 515(c), section 524(d) of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f note), section 4113(f) of title 12, or section 1715z–1a(p) of title 12, results in tenants in such housing project being eligible for enhanced voucher assistance under this subsection.
eligible entity
means an entity that meets the requirements under subsection (c)(2) to administer a Family Self-Sufficiency program under this section.
eligible family
means a family that meets the requirements under subsection (c)(1) to participate in the Family Self-Sufficiency program under this section.
eligible management entity
means, with respect to any public housing project, any of the following entities: The term does not include a resident council.
eligible project
means a project that—
families
includes families consisting of a single person in the case of (i) an elderly person, (ii) a disabled person, (iii) a displaced person, (iv) the remaining member of a tenant family, (v) a youth described in section 1437f(x)(2)(B) of this title, and (vi) any other single persons.
family
means a head of household, any spouse, any parents of the head of household, any parents of the spouse, and any children of the head of household or spouse.
federally assisted housing programs
means any program authorized by the United States Housing Act of 1937 [42 U.S.C. 1437 et seq.], sections 1715z and 1715z–1 of title 12, section 101 of the Housing and Urban Development Act of 1965 [12 U.S.C. 1701s], or section 1701q of title 12.
financial assistance
means financial assistance made available pursuant to the United States Housing Act of 1937 [42 U.S.C. 1437 et seq.], section 1715z or 1715z–1 of title 12, the direct loan program under section 1472 of this title or section 1472(c)(5)(D), 1474, 1490a(a)(2)(A), or 1490r of this title, subtitle A of title III of the Cranston-Gonzalez National Affordable Housing Act [42 U.S.C. 12851 et seq.], or section 101 of the Housing and Urban Development Act of 1965 [12 U.S.C. 1701s].
first-time homeowner
means—
homeownership program
means a program for homeownership meeting the requirements under this subchapter.
housing assistance plan
means a housing assistance plan submitted and approved under section 5304 of this title or, in the case of a unit of general local government not participating under title I of this Act [42 U.S.C. 5301 et seq.], a housing plan approved by the Secretary as meeting the requirements of this section.
housing voucher program
means a program for tenant-based assistance under section 1437f of this title.
income
means, with respect to a family, income received from all sources by each member of the household who is 18 years of age or older or is the head of household or spouse of the head of the household, plus unearned income by or on behalf of each dependent who is less than 18 years of age, as determined in accordance with criteria prescribed by the Secretary, in consultation with the Secretary of Agriculture, subject to the following requirements:
jurisdiction
means—
knowing
means having actual knowledge of or acting with deliberate ignorance of or reckless disregard for the prohibitions under this section.
low-income families
means those families whose incomes do not exceed 80 per centum of the median income for the area, as determined by the Secretary with adjustments for smaller and larger families, except that the Secretary may establish income ceilings higher or lower than 80 per centum of the median for the area on the basis of the Secretary’s findings that such variations are necessary because of prevailing levels of construction costs or unusually high or low family incomes.
low-income housing
means decent, safe, and sanitary dwellings assisted under this chapter.
manager
means any eligible management entity that has entered into a contract under this section with the Secretary for the management of specified housing.
mixed-finance project
means a public housing project that meets the requirements of section 1437z–7 of this title.
near-elderly person
means a person who is at least 50 years of age but below the age of 62.
net family assets
means, for all members of the household, the net cash value of all assets after deducting reasonable costs that would be incurred in disposing of real property, savings, stocks, bonds, and other forms of capital investment.
new landlord
means an owner of a dwelling unit who has not previously entered into a housing assistance payment contract with a public housing agency under this subsection for any dwelling unit.
nonprofit
means, with respect to an organization, association, corporation, or other entity, that no part of the net earnings of the entity inures to the benefit of any member, founder, contributor, or individual.
Operating Fund
means the fund established under section 1437g(e) of this title.
operation
means any or all undertakings appropriate for management, operation, services, maintenance, security (including the cost of security personnel), or financing in connection with a low-income housing project.
over-income family
means an individual or family that is not a low-income family at the time of initial occupancy.
owned by a public housing agency
means, with respect to a dwelling unit, that the dwelling unit is in a project that is owned by such agency, by an entity wholly controlled by such agency, or by a limited liability company or limited partnership in which such agency (or an entity wholly controlled by such agency) holds a controlling interest in the managing member or general partner.
owner
means any private person or entity, including a cooperative, an agency of the Federal Government, or a public housing agency, having the legal right to lease or sublease dwelling units;
participating family
means an eligible family that is participating in the Family Self-Sufficiency program under this section.
participating jurisdiction
means a State or unit of general local government designated by the Secretary to be a participating jurisdiction under title II of the Cranston-Gonzalez National Affordable Housing Act [42 U.S.C. 12721 et seq.];
person with disabilities
means a person who— Such term shall not exclude persons who have the disease of acquired immunodeficiency syndrome or any conditions arising from the etiologic agent for acquired immunodeficiency syndrome.
Pilot Program
means the Pilot Program established under paragraph (2).
police officer
means any person determined by a public housing agency to be, during the period of residence of that person in public housing, employed on a full-time basis as a duly licensed professional police officer by a Federal, State, or local government or by any agency thereof (including a public housing agency having an accredited police force).
private nonprofit organization
means any private organization (including a State or locally chartered organization) that—
project
means (A) housing developed, acquired, or assisted by a public housing agency under this chapter, and (B) the improvement of any such housing.
project-based assistance
means rental assistance under subsection (b) that is attached to the structure pursuant to subsection (d)(2) or (o)(13);
public child welfare agency
means the public agency responsible under applicable State law for determining that a child is at imminent risk of placement in out-of-home care or that a child in out-of-home care under the supervision of the public agency may be returned to his or her family.
public housing
means low-income housing, and all necessary appurtenances thereto, assisted under this chapter other than under section 1437f of this title.
public housing agency
means any State, county, municipality, or other governmental entity or public body (or agency or instrumentality thereof) which is authorized to engage in or assist in the development or operation of public housing, or a consortium of such entities or bodies as approved by the Secretary.
public housing agency plan
means the plan of a public housing agency prepared in accordance with section 1437c–1 of this title.
public housing project
includes one or more contiguous buildings or an area of contiguous row houses the elected resident councils of which approve the establishment of a resident management corporation and otherwise meet the requirements of this section.
public nonprofit organization
means any public entity that is nonprofit in character.
qualified family
means a family having an income described in subsection (b)(1).
qualified public housing agency
means a public housing agency that meets the following requirements:
qualifying smoke alarm
means a smoke alarm that—
recipient
means an applicant approved to receive a grant under this subchapter or such other entity specified in the approved application that will assume the obligations of the recipient under this subchapter.
resident council
means any incorporated nonprofit organization or association that—
satisfactory immigration status
means an immigration status which does not make the individual ineligible for financial assistance.
Secretary
means the Secretary of Housing and Urban Development.
severely distressed public housing
means a public housing project (or building in a project)—
small public housing agency
means a public housing agency—
smaller community
means a unit of general local government (as such term is defined in section 5302 of this title) that—
smoke alarm
has the meaning given the term “smoke detector” in section 2225(d) of title 15.
specified housing
means a public housing project or projects, or a portion of a project or projects, for which the transfer of management is requested under this section.
State
includes the several States, the District of Columbia, the Commonwealth of Puerto Rico, the territories and possessions of the United States, and the Trust Territory of the Pacific Islands.
State housing finance or State development agency
means any public body or agency, publicly sponsored corporation, or instrumentality of one or more States which is designated by the Governor (or Governors in the case of an interstate development agency) for purposes of this section;
supportive services
includes all activities that will promote upward mobility, self-sufficiency, and improved quality of life for the residents of the public housing project involved, including literacy training, job training, day care, transportation, and economic development activities.
tenant programs and services
includes the development and maintenance of tenant organizations which participate in the management of low-income housing projects;
tenant-based assistance
means rental assistance under subsection (o) that is not project-based assistance and that provides for the eligible family to select suitable housing and to move to other suitable housing.
termination
means the expiration of the assistance contract or an owner’s refusal to renew the assistance contract, and such term shall include termination of the contract for business reasons.
troubled small public housing agency
means a small public housing agency designated by the Secretary as a troubled small public housing agency under subsection (c)(3).
very low-income families
means low-income families whose incomes do not exceed 50 per centum of the median family income for the area, as determined by the Secretary with adjustments for smaller and larger families, except that the Secretary may establish income ceilings higher or lower than 50 per centum of the median for the area on the basis of the Secretary’s findings that such variations are necessary because of unusually high or low family incomes.
veteran
has the meaning given that term in section 2002(b) of title 38, United States Code.
welfare assistance
has the meaning given the term in section 984.103 of title 24, Code of Federal Regulations, or any successor regulation.