42 USC 1437z-4 - Resident homeownership programs

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

§ 1437z–4.

Resident homeownership programs

(a)

In general

(b)

Participating units

(c)

Eligible purchasers

(1)

Low-income requirement

(2)

Other requirements

(d)

Right of first refusal

(e)

Protection of nonpurchasing residents

If a public housing resident does not exercise the right of first refusal under subsection (d) with respect to the public housing unit in which the resident resides, the public housing agency—

(1)

shall notify the resident residing in the unit 90 days prior to the displacement date except in cases of imminent threat to health or safety, consistent with any guidelines issued by the Secretary governing such notifications, that—

(A)

the public housing unit will be sold;

(B)

the transfer of possession of the unit will occur until the resident is relocated; and

(C)

each resident displaced by such action will be offered comparable housing—

(i)

that meets housing quality standards;

(ii)

that is located in an area that is generally not less desirable than the location of the displaced resident’s housing; and

(iii)

which may include—

(I)

tenant-based assistance, except that the requirement under this subclause regarding offering of comparable housing shall be fulfilled by use of tenant-based assistance only upon the relocation of such resident into such housing;

(II)

project-based assistance; or

(III)

occupancy in a unit owned, operated, or assisted by the public housing agency at a rental rate paid by the resident that is comparable to the rental rate applicable to the unit from which the resident is vacated;

(2)

shall provide for the payment of the actual and reasonable relocation expenses of the resident to be displaced;

(3)

shall ensure that the displaced resident is offered comparable housing in accordance with the notice under paragraph (1);

(4)

shall provide any necessary counseling for the displaced resident; and

(5)

shall not transfer possession of the unit until the resident is relocated.

(f)

Financing and assistance

(g)

Downpayment requirement

(1)

In general

(2)

Direct family contribution

(h)

Ownership interests

(i)

Resale

(1)

Authority and limitation

A homeownership program under this section shall permit the resale of a dwelling unit purchased under the program by an eligible family, but shall provide such limitations on resale as the agency considers appropriate (whether the family purchases directly from the agency or from another entity) for the agency to recapture—

(A)

some or all of the economic gain derived from any such resale occurring during the 5-year period beginning upon purchase of the dwelling unit by the eligible family; and

(B)

after the expiration of such 5-year period, only such amounts as are equivalent to the assistance provided under this section by the agency to the purchaser.

(2)

Considerations

(j)

Net proceeds

(k)

Homeownership assistance

(l)

Inapplicability of disposition requirements

(Sept. 1, 1937, ch. 896, title I, § 32, as added Pub. L. 105–276, title V, § 536, Oct. 21, 1998, 112 Stat. 2586.)

cite as: 42 USC 1437z-4