42 U.S.C. § 1437z-4 : US Code - Section 1437Z-4: Resident homeownership programs

Search 42 U.S.C. § 1437z-4 : US Code - Section 1437Z-4: Resident homeownership programs

(a) In general
A public housing agency may carry out a homeownership program in
accordance with this section and the public housing agency plan of
the agency to make public housing dwelling units, public housing
projects, and other housing projects available for purchase by low-
income families for use only as principal residences for such
families. An agency may transfer a unit pursuant to a homeownership
program only if the program is authorized under this section and
approved by the Secretary.
(b) Participating units
A program under this section may cover any existing public
housing dwelling units or projects, and may include other dwelling
units and housing owned, assisted, or operated, or otherwise
acquired for use under such program, by the public housing agency.
(c) Eligible purchasers
(1) Low-income requirement
Only low-income families assisted by a public housing agency,
other low-income families, and entities formed to facilitate such
sales by purchasing units for resale to low-income families shall
be eligible to purchase housing under a homeownership program
under this section.
(2) Other requirements
A public housing agency may establish other requirements or
limitations for families to purchase housing under a
homeownership program under this section, including requirements
or limitations regarding employment or participation in
employment counseling or training activities, criminal activity,
participation in homeownership counseling programs, evidence of
regular income, and other requirements. In the case of purchase
by an entity for resale to low-income families, the entity shall
sell the units to low-income families within 5 years from the
date of its acquisition of the units. The entity shall use any
net proceeds from the resale and from managing the units, as
determined in accordance with guidelines of the Secretary, for
housing purposes, such as funding resident organizations and
reserves for capital replacements.
(d) Right of first refusal
In making any sale under this section, the public housing agency
shall initially offer the public housing unit at issue to the
resident or residents occupying that unit, if any, or to an
organization serving as a conduit for sales to any such resident.
(e) Protection of nonpurchasing residents
If a public housing resident does not exercise the right of first
refusal under subsection (d) of this section 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
A homeownership program under this section may provide financing
for acquisition of housing by families purchasing under the
program, or for acquisition of housing by the public housing agency
for sale under the program, in any manner considered appropriate by
the agency (including sale to a resident management corporation).
(g) Downpayment requirement
(1) In general
Each family purchasing housing under a homeownership program
under this section shall be required to provide from its own
resources a downpayment in connection with any loan for
acquisition of the housing, in an amount determined by the public
housing agency. Except as provided in paragraph (2), the agency
shall permit the family to use grant amounts, gifts from
relatives, contributions from private sources, and similar
amounts as downpayment amounts in such purchase.
(2) Direct family contribution
In purchasing housing pursuant to this section, each family
shall contribute an amount of the downpayment, from resources of
the family other than grants, gifts, contributions, or other
similar amounts referred to in paragraph (1), that is not less
than 1 percent of the purchase price.
(h) Ownership interests
A homeownership program under this section may provide for sale
to the purchasing family of any ownership interest that the public
housing agency considers appropriate under the program, including
ownership in fee simple, a condominium interest, an interest in a
limited dividend cooperative, a shared appreciation interest with a
public housing agency providing financing.
(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
The limitations referred to in paragraph (1)(A) may provide for
consideration of the aggregate amount of assistance provided
under the program to the family, the contribution to equity
provided by the purchasing eligible family, the period of time
elapsed between purchase under the homeownership program and
resale, the reason for resale, any improvements to the property
made by the eligible family, any appreciation in the value of the
property, and any other factors that the agency considers
appropriate.
(j) Net proceeds
The net proceeds of any sales under a homeownership program under
this section remaining after payment of all costs of the sale shall
be used for purposes relating to low-income housing and in
accordance with the public housing agency plan of the agency
carrying out the program.
(k) Homeownership assistance
From amounts distributed to a public housing agency under the
Capital Fund under section 1437g(d) of this title, or from other
income earned by the public housing agency, the public housing
agency may provide assistance to public housing residents to
facilitate the ability of those residents to purchase a principal
residence, including a residence other than a residence located in
a public housing project.
(l) Inapplicability of disposition requirements
The provisions of section 1437p of this title shall not apply to
disposition of public housing dwelling units under a homeownership
program under this section.