42 U.S.C. § 1437s
Low-income families residing in a public housing project shall be provided with the opportunity to purchase the dwelling units in the project through a qualifying resident management corporation as follows:
As a condition for public housing homeownership-
Notwithstanding any other provision of this chapter or other law to the contrary, proceeds from the sale of a building or buildings under paragraph (3) and amounts recaptured under paragraph (4) shall be paid to the public housing agency and shall be retained and used by the public housing agency only to increase the number of public housing units available for occupancy. The resident management corporation shall keep and make available to the public housing agency and the Secretary all records necessary to calculate accurately payments due the local housing agency under this section. The Secretary shall not reduce or delay payments under other provisions of law as a result of amounts made available to the local housing agency under this section.
When financing for the purchase of the property is not otherwise available for purposes of assisting any purchase by a family or resident management corporation under this section, the public housing agency involved may make a loan on the security of the property involved to the family or resident management corporation at a rate of interest that shall not be lower than 70 percent of the market interest rate for conventional mortgages on the date on which the loan is made.
Notwithstanding the purchase of a building in a public housing project under this section, the Secretary shall continue to provide assistance under section 1437g of this title with respect to the project. Such assistance may not exceed the allocation for the project under section 1437g of this title.
Amounts from the Operating Fund shall not be available with respect to a building after the date of its sale by the public housing agency.
No family residing in a dwelling unit in a public housing project may be evicted by reason of the sale of the project to a resident management corporation under this section.
Families renting a dwelling unit purchased by a resident management corporation shall have all rights provided to tenants of public housing under this chapter.
If any family resides in a dwelling unit in a building purchased by a resident management corporation, and the family decides not to purchase the dwelling unit, the Secretary shall offer to provide to the family (at the option of the family) tenant-based assistance under section 1437f(o) of this title for as long as the family continues to reside in the building. The Secretary may adjust the payment standard for such assistance to take into account conditions under which the building was purchased.
If any family resides in a dwelling unit in a public housing project in which other dwelling units are purchased under this section, and the family decides not to purchase the dwelling unit, the Secretary shall offer (to be selected by the family, at its option)-
The Secretary shall provide to public housing agencies such financial assistance as is necessary to permit such agencies to carry out the provisions of this section.
This section shall not apply to the turnkey III, the mutual help, or any other homeownership program established under section 1437d(c)(4)(D) of this title, as in effect before the effective date under section 503(a) of the Quality Housing and Work Responsibility Act of 1998, and in existence before February 5, 1988.
The Secretary shall issue such regulations as may be necessary to carry out the provisions of this section. Such regulations may establish any additional terms and conditions for homeownership or resident management under this section that are determined by the Secretary to be appropriate.
Any authority of the Secretary under this section to provide financial assistance, or to enter into contracts to provide financial assistance, shall be effective only to such extent or in such amounts as are or have been provided in advance in an appropriation Act.
42 U.S.C. § 1437s
EDITORIAL NOTES
REFERENCES IN TEXTSection 503(a) of the Quality Housing and Work Responsibility Act of 1998, referred to in subsec. (d), is section 503(a) of Pub. L. 105-276 which is set out as an Effective Date of 1998 Amendment note under section 1437 of this title.
AMENDMENTS1998-Subsec. (a)(2)(A). Pub. L. 105-276, §532(b)(1)(A), substituted "assistance from the Capital Fund" for "comprehensive improvement assistance under section 1437l of this title".Subsec. (a)(3)(A)(v). Pub. L. 105-276, §532(b)(1)(B), substituted "housing quality standards applicable under section 1437d(f) of this title" for "minimum safety and livability standards applicable under section 1437l of this title".Subsec. (a)(7). Pub. L. 105-276, §532(b)(1)(C), in heading, substituted "Capital and operating assistance" for "Annual contributions", in first sentence, substituted "provide assistance under section 1437g of this title" for "pay annual contributions", and at end, substituted "Such assistance may not exceed the allocation for the project under section 1437g of this title" for "Such contributions may not exceed the maximum contributions authorized in section 1437c(a) of this title."Subsec. (a)(8). Pub. L. 105-276, §532(b)(1)(D), in heading substituted "fund allocation" for "subsidies" and in text substituted "Amounts from the Operating Fund" for "Operating subsidies". Subsec. (b)(3). Pub. L. 105-276, §532(b)(2), in first sentence, substituted "tenant-based assistance" for "a certificate under section 1437f(b)(1) of this title or a housing voucher" and, in second sentence, substituted "payment standard for such assistance" for "fair market rent for such certificate".Subsec. (d). Pub. L. 105-276, §532(b)(3), inserted ",as in effect before the effective date under section 503(a) of the Quality Housing and Work Responsibility Act of 1998," after "section 1437d(c)(4)(D) of this title". Pub. L. 105-276, §518(a)(2)(A), struck out "section 1437c(h) of this title or" after "program established under".1995-Subsec. (f). Pub. L. 104-66 struck out heading and text of subsec. (f). Text read as follows: "The Secretary shall annually submit to the Congress a report setting forth-"(1) the number, type, and cost of units sold;"(2) the income, race, gender, children, and other characteristics of families purchasing or moving and not purchasing; "(3) the amount and type of financial assistance provided; "(4) the need for subsidy to ensure continued affordability and meet future maintenance and repair costs;"(5) any need for the development of additional public housing dwelling units as a result of the sale of public housing dwelling units under this section;"(6) recommendations of the Secretary for additional budget authority to carry out such development;"(7) recommendations of the Secretary to ensure decent homes and decent neighborhoods for low-income families; and"(8) the recommendations of the Secretary for statutory and regulatory improvements to the program." 1992-Subsec. (a)(2)(C), (3)(C). Pub. L. 102-550 substituted "February 4, 1991" for "the effective date of the regulations implementing subchapter II-A of this chapter" and "after such date" for "after such effective date" and made technical amendment to reference to November 28, 1990, to reflect correction of corresponding provisions of original act.1990-Subsec. (a). Pub. L. 101-625, §572(1), which directed substitution of "low-income families" for "lower income families", was executed by substituting "Low-income families" for "Lower income families" in introductory provisions to reflect the probable intent of Congress.Subsec. (a)(2)(B). Pub. L. 101-625, §416(1), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: "The Secretary, and the public housing agency owning and operating a public housing project, shall provide such training, technical assistance, and educational assistance as the Secretary determines to be necessary to prepare the families residing in the project, and any resident management corporation established under paragraph (1), for homeownership."Subsec. (a)(2)(C). Pub. L. 101-625, §416(2), substituted "the effective date of the regulations implementing subchapter II-A of this chapter. The Secretary may not provide financial assistance under subparagraph (B), after such effective date, unless the Secretary determines that such assistance is necessary for the development of a homeownership program that was initiated, as determined by the Secretary, before November 28, 1990" for "September 30, 1990". Subsec. (a)(3)(C). Pub. L. 101-625, §416(3), substituted "the effective date of the regulations implementing subchapter II-A of this chapter. The authority for a resident management corporation to purchase 1 or more multifamily buildings in a public housing project from a public housing agency shall terminate after such effective date, unless the Secretary determines that such purchase is necessary for the development of a homeownership program that was initiated, as determined by the Secretary, before November 28, 1990" for "September 30, 1990".Subsec. (f)(7). Pub. L. 101-625, §572(1), substituted "low-income families" for "lower income families".
STATUTORY NOTES AND RELATED SUBSIDIARIES
EFFECTIVE DATE OF 1998 AMENDMENT Amendment by title V of Pub. L. 105-276 effective and applicable beginning upon Oct. 1, 1999, except as otherwise provided, with provision that Secretary may implement amendment before such date, except to extent that such amendment provides otherwise, and with savings provision, see section 503 of Pub. L. 105-276 set out as a note under section 1437 of this title.
- Secretary
- The term "Secretary" means the Secretary of Housing and Urban Development.1See References in Text note below.
- housing assistance
- The term "housing assistance" means, with respect to federally assisted housing, the grant, contribution, capital advance, loan, mortgage insurance, or other assistance provided for the housing under the provisions of law referred to in paragraph (2). The term also includes any related assistance provided for the housing by the Secretary, including any rental assistance for low-income occupants.
- owner
- The term "owner" means, with respect to federally assisted housing, the entity or private person, including a cooperative or public housing agency, that has the legal right to lease or sublease dwelling units in such housing.
- project
- The terms "federally assisted housing" and "project" mean-(A) a public housing project (as such term is defined in section 3(b) of the United States Housing Act of 1937 [42 U.S.C. 1437a(b)] );(B) housing for which project-based assistance is provided under section 8 of the United States Housing Act of 1937 [42 U.S.C. 1437f] ;(C) housing that is assisted under section 1701q of title 12;(D) housing that is assisted under section 1701q of title 12, as such section existed before November 28, 1990;(E) housing financed by a loan or mortgage insured under section 1715l(d)(3) of title 12 that bears interest at a rate determined under the proviso of section 1715l(d)(5) of title 12;(F) housing insured, assisted, or held by the Secretary or a State or State agency under section 1715z-1 of title 12;(G) housing constructed or substantially rehabilitated pursuant to assistance provided under section 8(b)(2) of the United States Housing Act of 1937 [42 U.S.C. 1437f(b)(2)], as in effect before October 1, 1983, that is assisted under a contract for assistance under such section; and(H) housing that is assisted under section 80131 of this title.