42 USC 12898a - Enterprise zone homeownership opportunity grants

U.S Code last checked for updates: May 17, 2024

§ 12898a.

Enterprise zone homeownership opportunity grants

(a)

Statement of purpose

It is the purpose of this section—

(1)

to encourage homeownership by families in the United States who are not otherwise able to afford homeownership;

(2)

to encourage the redevelopment of economically depressed areas; and

(3)

to provide better housing opportunities in federally approved and equivalent State-approved enterprise zones.

(b)

Definitions

For purposes of this section the following definitions shall apply:

(1)

Home

(2)

Metropolitan statistical area

(3)

Nonprofit organization

(4)

Secretary

(5)

State

(6)

Unit of general local government

(c)

Assistance to nonprofit organizations

(1)

In general

(2)

Applications

(d)

Eligible uses of assistance

(1)

In general

(2)

Specific requirements

Each loan made to a family under this subsection shall—

(A)

be secured by a second mortgage held by the Secretary on the property involved;

(B)

be in an amount not exceeding $15,000;

(C)

bear no interest; and

(D)

be repayable to the Secretary upon the sales, lease, or other transfer of such property.

(e)

Program requirements

(1)

In general

(2)

Family need

Each family purchasing a home under this section shall—

(A)

have a family income on the date of such purchase that is not more than the median income for a family of 4 persons (adjusted for family size) in the metropolitan statistical area in which a federally approved or equivalent State-approved enterprise zone is located; and

(B)

not have owned a home during the 3-year period preceding such purchase.

(3)

Downpayment

(4)

Leasing prohibition

(f)

Terms and conditions of assistance

(1)

Local consultation

No proposed enterprise zone homeownership opportunity program may be approved by the Secretary under this section unless the applicant involved demonstrates to the satisfaction of the Secretary that—

(A)

it has consulted with and received the support of residents of the neighborhood in which such program is to be located; and

(B)

it has the approval of each unit of general local government in which such program is to be located.

(2)

Program schedule

(3)

Location

(4)

Sales contracts

(g)

Program selection criteria

(1)

In general

In selecting enterprise zone homeownership opportunity programs for assistance under this section from among eligible programs, the Secretary shall make such selection on the basis of the extent to which—

(A)

non-Federal public or private entities will contribute land necessary to make each program feasible;

(B)

non-Federal public and private financial or other contributions (including tax abatements, waivers of fees related to development, waivers of construction, development, or zoning requirements, and direct financial contributions) will reduce the cost of home 1

 So in original. Probably should be “homes”.

constructed or rehabilitated under each program;

(C)

each program will produce the greatest number of units for the least amount of assistance provided under this section, taking into consideration the cost differences among different market areas; and

(D)

each program provides for the involvement of local residents in the planning, and construction or rehabilitation, of homes.

(2)

Exception

(h)

Regulations

(i)

Funding

(Pub. L. 102–550, title I, § 186, Oct. 28, 1992, 106 Stat. 3748.)

cite as: 42 USC 12898a