§ 1437s.
(a)
Homeownership opportunities in general
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:
(1)
Formation of resident management corporation
As a condition for public housing homeownership—
(A)
the adult residents of a public housing project shall have formed a resident management corporation in accordance with regulations and requirements of the Secretary prescribed under this section and
section 1437r of this title;
(B)
the resident management corporation shall have entered into a contract with the public housing agency establishing the respective management rights and responsibilities of the resident management corporation and the public housing agency; and
(C)
the resident management corporation shall have demonstrated its ability to manage public housing effectively and efficiently for a period of not less than 3 years.
(2)
Homeownership assistance
(A)
The Secretary may provide assistance from the Capital Fund to a public housing project in which homeownership activities under this section are conducted.
(B)
The Secretary may provide financial assistance to public housing agencies, resident management corporations, or resident councils that obtain, by contract or otherwise, training, technical assistance, and educational assistance as the Secretary determines to be necessary to promote homeownership opportunities under this section.
(C)
This paragraph shall not have effect after February 4, 1991. The Secretary may not provide financial assistance under subparagraph (B), after such 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.
(3)
Conditions of purchase by a resident management corporation
(A)
A resident management corporation may purchase from a public housing agency one or more multifamily buildings in a public housing project following a determination by the Secretary that—
(i)
the resident management corporation has met the conditions of paragraph (1);
(ii)
the resident management corporation has applied for and is prepared to undertake the ownership, management, and maintenance of the building or buildings with continued assistance from the Secretary;
(iii)
the public housing agency has held one or more public hearings to obtain the views of citizens regarding the proposed purchase and, in consultation with the Secretary, has certified that the purchase will not interfere with the rights of other families residing in public housing, will not harm the efficient operation of other public housing, and is in the interest of the community;
(iv)
the public housing agency has certified that it has and will implement a plan to replace public housing units sold under this section within 30 months of the sale, which plan shall provide for replacement of 100 percent of the units sold under this section by—
(I)
production, acquisition, or rehabilitation of vacant public housing units by the public housing agency; and
(II)
acquisition by the resident management corporation of nonpublicly owned, decent, and affordable housing units, which the resident management corporation shall operate as rental housing subject to tenant income and rent limitations comparable to the limitations applicable to public housing; and
(v)
the building or buildings meet the housing quality standards applicable under
section 1437d(f) of this title, and the physical condition, management, and operation of the building or buildings are sufficient to permit affordable homeownership by the families residing in the project.
(B)
The price of a building purchased under the preceding sentence shall be approved by the Secretary, in consultation with the public housing agency and resident management corporation, taking into account the fair market value of the property, the ability of resident families to afford and maintain the property, and such other factors as the Secretary determines to be consistent with increasing the supply of dwelling units affordable to very low income families.
(C)
This paragraph shall not have effect after February 4, 1991. 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 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.
(4)
Conditions of resale
(A)
(i)
A resident management corporation may sell a dwelling unit or ownership rights in a dwelling unit only to a lower income family residing in, or eligible to reside in, public housing and only if the Secretary determines that the purchase will not interfere with the rights of other families residing in the housing project or harm the efficient operation of the project, and the family will be able to purchase and maintain the property.
(ii)
The sale of dwelling units or ownership rights in dwelling units under clause (i) shall be made to families in the following order of priority:
(I)
a lower income family residing in the public housing project in which the dwelling unit is located;
(II)
a lower income family residing in any public housing project within the jurisdiction of the public housing agency having jurisdiction with respect to the project in which the dwelling unit is located;
(III)
a lower income family receiving Federal housing assistance and residing in the jurisdiction of such public housing agency; and
(IV)
a lower income family on the waiting list of such public housing agency for public housing or assistance under
section 1437f of this title, with priority given in the order in which the family appears on the waiting list.
(iii)
Each resident management corporation shall provide each family described in clause (ii) with a notice of the eligibility of the family to purchase a dwelling unit under this paragraph.
(B)
A purchase under subparagraph (A) may be made under any of the following arrangements:
(i)
Limited dividend cooperative ownership.
(ii)
Condominium ownership.
(iii)
Fee simple ownership.
(iv)
Shared appreciation with a public housing agency providing financing under paragraph (6).
(v)
Any other arrangement determined by the Secretary to be appropriate.
(C)
Property purchased under this section shall be resold only to the resident management corporation, a lower income family residing in or eligible to reside in public housing or housing assisted under
section 1437f of this title, or to the public housing agency.
(D)
In no case may the owner receive consideration for his or her interest in the property that exceeds the total of—
(i)
the contribution to equity paid by the owner;
(ii)
the value, as determined by such means as the Secretary shall determine through regulation, of any improvements installed at the expense of the owner during the owner’s tenure as owner; and
(iii)
the appreciated value determined by an inflation allowance at a rate which may be based on a cost of living index, an income index, or market index as determined by the Secretary through regulation and agreed to by the purchaser and the resident management corporation or the public housing agency, whichever is appropriate, at the time of initial sale, and applied against the contribution to equity; the resident management corporation or the public housing agency may, at the time of initial sale, enter into an agreement with the owner to set a maximum amount which this appreciation may not exceed.
(E)
Upon sale, the resident management corporation or the public housing agency, whichever is appropriate, shall ensure that subsequent owners are bound by the same limitations on resale and further restrictions on equity appreciation.
(7)
Capital and operating assistance
(8)
Operating Fund allocation
(b)
Protection of nonpurchasing families
(4)
Rental and relocation assistance
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)—
(A)
to assist the family in relocating to a comparable appropriate sized dwelling unit in another public housing project, and to reimburse the family for their cost of relocation; and
(B)
to provide to the family the financial assistance necessary to permit the family to stay in the dwelling unit or to move to another comparable dwelling unit and to pay no more for rent than required under subparagraph (A), (B), or (C) of
section 1437a(a)(1) of this title.
(f)
Repealed. [Pub. L. 104–66, title I, § 1071(a)], Dec. 21, 1995, [109 Stat. 720]
([Sept. 1, 1937, ch. 896], title I, § 21, as added [Pub. L. 100–242, title I, § 123], Feb. 5, 1988, [101 Stat. 1842]; renumbered title I, [Pub. L. 100–358, § 5], June 29, 1988, [102 Stat. 681]; amended [Pub. L. 101–625, title IV, § 416], title V, § 572(1), Nov. 28, 1990, [104 Stat. 4161], 4236; [Pub. L. 102–550, title I, § 118], Oct. 28, 1992, [106 Stat. 3695]; [Pub. L. 104–66, title I, § 1071(a)], Dec. 21, 1995, [109 Stat. 720]; [Pub. L. 105–276, title V], §§ 518(a)(2)(A), 532(b), Oct. 21, 1998, [112 Stat. 2551], 2575.)