42 U.S.C. § 1437c : US Code - Section 1437C: Contributions for low-income housing projects

Search 42 U.S.C. § 1437c : US Code - Section 1437C: Contributions for low-income housing projects

(a) Contract authorization; amounts; use as security for
obligations of public housing agency; use of existing structures
(1) The Secretary may make annual contributions to public housing
agencies to assist in achieving and maintaining the lower income
character of their projects. The Secretary shall embody the
provisions for such annual contributions in a contract guaranteeing
their payment. The contribution payable annually under this section
shall in no case exceed a sum equal to the annual amount of
principal and interest payable on obligations issued by the public
housing agency to finance the development or acquisition cost of
the lower income project involved. Annual contributions payable
under this section shall be pledged, if the Secretary so requires,
as security for obligations issued by a public housing agency to
assist the development or acquisition of the project to which
annual contributions relate and shall be paid over a period not to
exceed 40 years.
(2) The Secretary may make contributions (in the form of grants)
to public housing agencies to cover the development cost of public
housing projects. The contract under which such contributions shall
be made shall specify the amount of capital contributions required
for each project to which the contract pertains, and that the terms
and conditions of such contract shall remain in effect for a 40-
year period.
(3) The amount of contributions that would be established for a
newly constructed project by a public housing agency designed to
accommodate a number of families of a given size and kind may be
established under this section for a project by such public housing
agency that would provide housing for the comparable number, sizes,
and kinds of families through the acquisition and rehabilitation,
or use under lease, of structures that are suitable for low-income
housing use and obtained in the local market.
(b) Maximum amount of contributions; regulations; criteria for
rates of contribution
The Secretary may prescribe regulations fixing the maximum
contributions available under different circumstances, giving
consideration to cost, location, size, rent-paying ability of
prospective tenants, or other factors bearing upon the amounts and
periods of assistance needed to achieve and maintain low rentals.
Such regulations may provide for rates of contribution based upon
development, acquisition, or operation costs, number of dwelling
units, number of persons housed, interest charges, or other
appropriate factors.
(c) Limitation on aggregate contractual contributions; contracts
for preliminary loans; payments of annual contributions;
limitations on specific authorities
(1) The Secretary may enter into contracts for annual
contributions aggregating not more than $7,875,049,000 per annum,
which amount shall be increased by $1,494,400,000 on October 1,
1980, and by $906,985,000 on October 1, 1981. The additional
authority to enter into such contracts provided on or after October
1, 1980, shall be effective only in such amounts as may be approved
in appropriation Acts. In addition, the aggregate amount which may
be obligated over the duration of the contracts may not exceed
$31,200,000,000 with respect to the additional authority provided
on October 1, 1980, and $18,087,370,000 with respect to the
additional authority provided on October 1, 1981.
(2) The Secretary shall enter into only such new contracts for
preliminary loans as are consistent with the number of dwelling
units for which contracts for annual contributions may be entered
into.
(3) The full faith and credit of the United States is solemnly
pledged to the payment of all annual contributions contracted for
pursuant to this section, and there are hereby authorized to be
appropriated in each fiscal year, out of any money in the Treasury
not otherwise appropriated, the amounts necessary to provide for
such payments.
(4) All payments of annual contributions pursuant to this section
shall be made out of any funds available for purposes of this
chapter when such payments are due, except that funds obtained
through the issuance of obligations pursuant to section 1437b(b) of
this title (including repayments or other realizations of the
principal of loans made out of such funds) shall not be available
for the payment of such annual contributions.
(5) During such period as the Secretary may prescribe for
starting construction, the Secretary may approve the conversion of
public housing development authority for use under section 1437g of
this title or for use for the acquisition and rehabilitation of
property to be used in public housing, if the public housing
agency, after consultation with the unit of local government,
certifies that such assistance would be more effectively used for
such purpose, and if the total number of units assisted will not be
less than 90 per centum of the units covered by the original
reservation.
(6) The aggregate amount of budget authority which may be
obligated for contracts for annual contributions and for grants
under section 1437o of this title is increased by $9,912,928,000 on
October 1, 1983, and by such sums as may be approved in
appropriation Acts on October 1, 1984. The aggregate amount of
budget authority that may be obligated for contracts for annual
contributions for assistance under section 1437f of this title, for
contracts referred to in paragraphs (7)(A)(iv) and (7)(B)(iv), for
grants for public housing, for comprehensive improvement
assistance, and for amendments to existing contracts, is increased
(to the extent approved in appropriation Acts) by $7,167,000,000 on
October 1, 1987, and by $7,300,945,000 on October 1, 1988. The
aggregate amount of budget authority that may be obligated for
assistance referred to in paragraph (7) is increased (to the extent
approved in appropriation Acts) by $16,194,000,000 on October 1,
1990, and by $14,709,400,000 on October 1, 1991. The aggregate
amount of budget authority that may be obligated for assistance
referred to in paragraph (7) is increased (to the extent approved
in appropriation Acts) by $14,710,990,520 on October 1, 1992, and
by $15,328,852,122 on October 1993.
(7)(A) Using the additional budget authority provided under
paragraph (6) and the balances of budget authority that become
available during fiscal year 1993, the Secretary shall, to the
extent approved in appropriation Acts, reserve authority to enter
into obligations aggregating -
(i) for public housing grants under subsection (a)(2) of this
section, not more than $830,900,800, of which amount not more
than $257,320,000 shall be available for Indian housing;
(ii) for assistance under section 1437f of this title, not more
than $1,977,662,720, of which $20,000,000 shall be available for
15-year contracts for project-based assistance to be used for a
multicultural tenant empowerment and homeownership project
located in the District of Columbia, except that assistance
provided for such project shall not be considered for purposes of
the percentage limitations under section 1437f(i)(2) of this
title; except that not more than 49 percent of any amounts
appropriated under this clause may be used for vouchers under
section 1437f(o) of this title;
(iii) for comprehensive improvement assistance grants under
section 1437l(k) of this title, not more than $3,100,000,000;
(iv) for assistance under section 1437f of this title for
property disposition, not more than $93,032,000;
(v) for assistance under section 1437f of this title for loan
management, not more than $202,000,000;
(vi) for extensions of contracts expiring under section 1437f
of this title, not more than $6,746,135,000, which shall be for 5-
year contracts for assistance under section 1437f of this title
and for loan management assistance under such section;
(vii) for amendments to contracts under section 1437f of this
title, not more than $1,350,000,000;
(viii) for public housing lease adjustments and amendments, not
more than $83,055,000;
(ix) for conversions from leased housing contracts under
section 1421b of this title (as in effect immediately before
August 22, 1974) to assistance under section 1437f of this title,
not more than $12,767,000; and
(x) for grants under section 1437v of this title for
revitalization of severely distressed public housing, not more
than $300,000,000.
(B) Using the additional budget authority provided under
paragraph (6) and the balances of budget authority that become
available during fiscal year 1994, the Secretary shall, to the
extent approved in appropriation Acts, reserve authority to enter
into obligations aggregating -
(i) for public housing grants under subsection (a)(2) of this
section, not more than $865,798,634, of which amount not more
than $268,127,440 shall be available for Indian housing;
(ii) for assistance under section 1437f of this title, not more
than $2,060,724,554, of which $20,000,000 shall be available for
15-year contracts for project-based assistance to be used for a
multicultural tenant empowerment and homeownership project
located in the District of Columbia, except that assistance
provided for such project shall not be considered for purposes of
the percentage limitations under section 1437f(i)(2) of this
title; except that not more than 49 percent of any amounts
appropriated under this clause may be used for vouchers under
section 1437f(o) of this title;
(iii) for comprehensive improvement assistance grants under
section 1437l(k) of this title, not more than $3,230,200,000;
(iv) for assistance under section 1437f of this title for
property disposition, not more than $96,939,344;
(v) for assistance under section 1437f of this title for loan
management, not more than $210,484,000;
(vi) for extensions of contracts expiring under section 1437f
of this title, not more than $7,029,472,670, which shall be for 5-
year contracts for assistance under section 1437f of this title
and for loan management assistance under such section;
(vii) for amendments to contracts under section 1437f of this
title, not more than $1,406,700,000;
(viii) for public housing lease adjustments and amendments, not
more than $86,543,310;
(ix) for conversions from leased housing contracts under
section 1421b of this title (as in effect immediately before
August 22, 1974) to assistance under section 1437f of this title,
not more than $13,303,214; and
(x) for grants under section 1437v of this title for
revitalization of severely distressed public housing, not more
than $312,600,000.
(C)(i) Any amount available for the conversion of a project to
assistance under section 1437f(b)(1) of this title, if not required
for such purpose, shall be used for assistance under section
1437f(b)(1) of this title.
(ii) Any amount available for assistance under section 1437f of
this title for property disposition, if not required for such
purpose, shall be used for assistance under section 1437f(b)(1) of
this title.
(8) Any amount available for Indian housing under subsection (a)
of this section that is recaptured shall be used only for such
housing.
(d) Scope of contracts for loans or annual contributions
Any contract for loans or annual contributions, or both, entered
into by the Secretary with a public housing agency, may cover one
or more than one low-income housing project owned by such public
housing agency; in the event the contract covers two or more
projects, such projects may, for any of the purposes of this
chapter and of such contract (including, but not limited to, the
determination of the amount of the loan, annual contributions, or
payments in lieu of taxes, specified in such contract), be treated
collectively as one project.
(e) Local determination of need as prerequisite for contracts for
preliminary loans, and contracts for loans or annual
contributions; notice
In recognition that there should be local determination of the
need for low-income housing to meet needs not being adequately met
by private enterprise -
(1) the Secretary shall not make any contract with a public
housing agency for preliminary loans (all of which shall be
repaid out of any moneys which become available to such agency
for the development of the projects involved) for surveys and
planning in respect to any low-income housing projects (i) unless
the governing body of the locality involved has by resolution
approved the application of the public housing agency for such
preliminary loan; and (ii) unless the public housing agency has
demonstrated to the satisfaction of the Secretary that there is
need for such low-income housing which is not being met by
private enterprise; and
(2) the Secretary shall not make any contract for loans (other
than preliminary loans) or for contributions pursuant to this
chapter unless the governing body of the locality involved has
entered into an agreement with the public housing agency
providing for the local cooperation required by the Secretary
pursuant to this chapter; the Secretary shall require that each
such agreement shall provide that, notwithstanding any order,
judgment, or decree of any court (including any settlement
order), before making any amounts that are provided pursuant to
any contract for contributions under this subchapter available
for use for the development of any housing or other property not
previously used as public housing, the public housing agency
shall (A) notify the chief executive officer (or other
appropriate official) of the unit of general local government in
which the public housing for which such amounts are to be so used
is located (or to be located) of such use, and (B) pursuant to
the request of such unit of general local government, provide
such information as may reasonably be requested by such unit of
general local government regarding the public housing to be so
assisted (except to the extent otherwise prohibited by law).
(f) Modification by Secretary of terms of contracts, etc.;
limitations; amendment or supersedure of contracts for annual
contributions or loans
Subject to the specific limitations or standards in this chapter
governing the terms of sales, rentals, leases, loans, contracts for
annual contributions, or other agreements, the Secretary may,
whenever he deems it necessary or desirable in the fulfillment of
the purposes of this chapter, consent to the modification, with
respect to rate of interest, time of payment of any installment of
principal or interest, security, amount of annual contribution, or
any other term, of any contract or agreement of any kind to which
the Secretary is a party. When the Secretary finds that it would
promote economy or be in the financial interest of the Federal
Government or is necessary to assure or maintain the lower income
character of the project or projects involved, any contract
heretofore or hereafter made for annual contributions, loans, or
both, may be amended or superseded by a contract entered into by
mutual agreement between the public housing agency and the
Secretary. Contracts may not be amended or superseded in a manner
which would impair the rights of the holders of any outstanding
obligations of the public housing agency involved for which annual
contributions have been pledged. Any rule of law contrary to this
provision shall be deemed inapplicable.
(g) Pledge of annual contributions as guarantee of payment of
obligations issued by public housing agency; exception
In addition to the authority of the Secretary under subsection
(a) of this section to pledge annual contributions as security for
obligations issued by a public housing agency, the Secretary is
authorized to pledge annual contributions as a guarantee of payment
by a public housing agency of all principal and interest on
obligations issued by it to assist the development or acquisition
of the project to which the annual contributions relate, except
that no obligation shall be guaranteed under this subsection if the
income thereon is exempt from Federal taxation.
(h) Audits
(1) By Secretary and Comptroller General
Each contract for contributions for any assistance under this
chapter to a public housing agency shall provide that the
Secretary, the Inspector General of the Department of Housing and
Urban Development, and the Comptroller General of the United
States, or any of their duly authorized representatives, shall,
for the purpose of audit and examination, have access to any
books, documents, papers, and records of the public housing
agency that are pertinent to this chapter and to its operations
with respect to financial assistance under the this (!1) chapter.
(2) Withholding of amounts for audits under Single Audit Act
The Secretary may, in the sole discretion of the Secretary,
arrange for and pay the costs of an audit required under chapter
75 of title 31. In such circumstances, the Secretary may
withhold, from assistance otherwise payable to the agency under
this chapter, amounts sufficient to pay for the reasonable costs
of conducting an acceptable audit, including, when appropriate,
the reasonable costs of accounting services necessary to place
the agency's books and records in auditable condition. As agreed
to by the Secretary and the Inspector General, the Inspector
General may arrange for an audit under this paragraph.
(i) Prohibition on use of funds
None of the funds made available to the Department of Housing and
Urban Development to carry out this chapter, which are obligated to
State or local governments, public housing agencies, housing
finance agencies, or other public or quasi-public housing agencies,
shall be used to indemnify contractors or subcontractors of the
government or agency against costs associated with judgments of
infringement of intellectual property rights.