42 USC 12875 - Other program requirements

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

§ 12875.

Other program requirements

(a)

Preferences

(b)

Cost limitations

(c)

Use of proceeds from sales to eligible families

(d)

Restrictions on resale by homeowners

(1)

In general

(A)

Transfer permitted

(B)

Right to purchase

(C)

Promissory note required

(2)

6 years or less

In the case of a transfer within 6 years of the acquisition under the program, the homeownership program shall provide for appropriate restrictions to assure that an eligible family may not receive any undue profit. The plan shall provide for limiting the family’s consideration for its interest in the property to the total of—

(A)

the contribution to equity paid by the family;

(B)

the value, as determined by such means as the Secretary shall determine through regulation, of any improvements installed at the expense of the family during the family’s tenure as owner; and

(C)

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 entity that transfers ownership interests in, or shares representing, units to eligible families (or another entity specified in the approved application), at the time of initial sale, and applied against the contribution to equity.

Such an entity may, at the time of initial sale, enter into an agreement with the family to set a maximum amount which this appreciation may not exceed.

(3)

6–20 years

(4)

Use of recaptured funds

(e)

Third party rights

(f)

Dollar limitation on economic development activities

(g)

Timely homeownership

(h)

Records and audit of recipients of assistance

(1)

In general

(2)

Access by Secretary

(3)

Access by Comptroller General

(i)

Certain entities not eligible

(Pub. L. 101–625, title IV, § 425, Nov. 28, 1990, 104 Stat. 4168.)

cite as: 42 USC 12875