42 USC 12742 - Eligible uses of investment

U.S Code last checked for updates: Aug 11, 2026

§ 12742.

Eligible uses of investment

(a)

Housing uses

(1)

In general

(2)

Limitation

(3)

Tenant-based rental assistance

(A)

In general

A participating jurisdiction may use funds provided under this part for tenant-based rental assistance only if—

(i)

the jurisdiction certifies that the use of funds under this part for tenant-based rental assistance is an essential element of the jurisdiction’s annual housing strategy for expanding the supply, affordability, and availability of decent, safe, sanitary, and affordable housing, and specifies the local market conditions that lead to the choice of this option; and

(ii)

the tenant-based rental assistance is provided in accordance with written tenant selection policies and criteria that are consistent with the purposes of providing housing to very low- and low-income families and are reasonably related to preference rules established under section 1437d(c)(4)(A) of this title.

(B)

Fair share not affected

(C)

24-month contracts

(D)

Use of section 1437f assistance

(E)

Security deposit assistance

(4)

Infrastructure improvements in nonentitlement areas

(A)

In general

A participating jurisdiction may use funds provided under this part for infrastructure improvements, including the installation or repair of water and sewer lines, sidewalks, roads, and utility connections if—

(i)

such participating jurisdiction does not receive assistance under title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5310); 1

 So in original. Probably should be “(42 U.S.C. 5301 et seq.);”.

and

(ii)

such improvements are directly related to, and located within or immediately adjacent to—

(I)

housing assisted under this part; or

(II)

housing assisted under section 42 of title 26.

(B)

Application of labor standards

(C)

Rule of construction

(5)

Lead-based paint hazards

(b)

Investments

(c)

Administrative costs

(d)

Prohibited uses

Funds made available under this part may not be used to—

(1)

defray any administrative cost of a participating jurisdiction that exceed the amount specified under subsection (c),

(2)

provide tenant-based rental assistance for the special purposes of the existing section 8 [

] program, including replacing public housing that is demolished or disposed of, preserving federally assisted housing, assisting in the disposition of housing owned or held by the Secretary, preventing displacement from rental rehabilitation projects, or extending or renewing tenant-based assistance under

(3)

provide non-Federal matching contributions required under any other Federal program,

(4)

provide assistance authorized under section 1437g of this title,

(5)

carry out activities authorized under section 1437g(d)(1) of this title, or

(6)

provide assistance to eligible low-income housing under the Emergency Low Income Housing Preservation Act of 1987 or the Low-Income Housing Preservation and Resident Homeownership Act of 1990 [12 U.S.C. 4101 et seq.].

(e)

Cost limits

(1)

In general

(2)

Criteria

In calculating per unit limits, the Secretary shall take into account that assistance under this subchapter is intended to—

(A)

provide nonluxury housing with suitable amenities;

(B)

operate effectively in all jurisdictions;

(C)

facilitate mixed-income housing; and

(D)

reflect the costs associated with meeting the special needs of tenants or homeowners that the housing is designed to serve.

(3)

Consultation

(f)

Certification of compliance

(g)

Limitation on operating assistance

(Pub. L. 101–625, title II, § 212, Nov. 28, 1990, 104 Stat. 4097; Pub. L. 102–550, title II, §§ 203(a), 204–207(b), (d), title X, § 1012(e), Oct. 28, 1992, 106 Stat. 3752–3754, 3905; Pub. L. 105–276, title V, § 522(b)(5), Oct. 21, 1998, 112 Stat. 2565; Pub. L. 119–101, title V, § 501(d), (e)(1), (f), (v)(7), July 11, 2026, 140 Stat. 907, 908, 917.)

cite as: 42 USC 12742