42 USC 12874 - Homeownership program requirements

U.S Code last checked for updates: Nov 22, 2024

§ 12874.

Homeownership program requirements

(a)

In general

(b)

Affordability

(c)

Plan

A homeownership program under this part shall provide, and include a plan, for—

(1)

identifying and selecting eligible families to participate in the homeownership program;

(2)

providing relocation assistance to families who elect to move;

(3)

ensuring continued affordability by tenants, homebuyers, and homeowners in the property; and

(4)

providing ongoing training and counseling for homebuyers and homeowners.

(d)

Acquisition and rehabilitation limitation

(e)

Financing

(1)

In general

(2)

Prohibition against pledges

Property transferred under this part shall not be pledged as collateral for debt or otherwise encumbered except when the Secretary determines that—

(A)

such encumbrance will not threaten the long-term availability of the property for occupancy by low-income families;

(B)

neither the Federal Government nor the public housing agency will be exposed to undue risks related to action that may have to be taken pursuant to paragraph (3);

(C)

any debt obligation can be serviced from project income, including operating assistance; and

(D)

the proceeds of such encumbrance will be used only to meet housing standards in accordance with subsection (f) or to make such additional capital improvements as the Secretary determines to be consistent with the purposes of this part.

(3)

Opportunity to cure

(f)

Housing quality standards

The application shall include a plan ensuring that the unit—

(1)

will be free from any defects that pose a danger to health or safety before transfer of an ownership interest in, or shares representing, a unit to an eligible family; and

(2)

will, not later than 2 years after the transfer to an eligible family, meet minimum housing standards established by the Secretary for the purpose of this title.1

 See References in Text note below.

(g)

Protection of nonpurchasing families

(1)

In general

(2)

Rental assistance

(3)

Relocation assistance

(Pub. L. 101–625, title IV, § 424, Nov. 28, 1990, 104 Stat. 4166.)

cite as: 42 USC 12874