improving the overall effectiveness of Federal assistance for the rehabilitation of multifamily properties. Approved September 2, 1964. EXCERPT FROM HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974 [Public Law 93-383; 88 Stat. 633; 12 U.S.C. 1706e] URBAN HOMESTEADING SEC. 810. (a) Notwithstanding any other provision of law, the Secretary of Housing and Urban Development (hereinafter referred to as the "Secretary") is authorized to transfer without payment to a unit of general local government or a State, or a public agency designated by a unit of general local government or a State, any real property (1) which is improved by a one- to four-family residence; (3) which is not occupied by a person legally entitled to reside there; (4) which is requested by such unit, State, or agency for use in an urban homestead program; and (5) which the Secretary determines is suitable for use in an urban homestead program which meets the requirements of subsection (b). In determining the suitability of such property for use in an urban homestead program, the Secretary shall consider (A) the difficulties and delays which would be involved in the sale of the property; (B) the value of any repairs and improvements required by the program; (C) the benefits to the community and the reduced administrative costs to the Federal Government which would accrue from the expedited occupancy of the unoccupied property; and (D) the possible financial loss to the Federal Government which may result from the transfer of the property without payment. (b) For the purpose of subsections (a) and (c), the Secretary shall approve an urban homestead program carried out by a unit of general local government or a State or a public agency designated by a unit of general local government or a State, which provides for (1) the conditional conveyance of unoccupied residential property by the responsible administrative entity to an individual or a family without any substantial consideration; (2) an equitable procedure for selecting the recipients of the unoccupied residential property, giving special consideration to the recipients' need for housing and capacity to make or cause to be made the repairs and improvements required under paragraph (3)(C) of this subsection; (3) an agreement whereby the individual or family to whom such property is conveyed agrees to (A) occupy such property as a principal residence for a period of not less than 5 years, except under such emergency standards as may be prescribed by the Secretary; (B) repair all defects in the property that pose a substantial danger to health and safety within 1 year of the date of such initial conveyance; (C) make such repairs and improvements to the property as may be necessary to meet applicable local standards for decent, safe, and sanitary housing within 3 years after the date of initial conveyance; and (D) permit reasonable periodic inspections at reasonable times by employees of the unit of general local government or State or the public agency designated by the unit of general local government or State for the purpose of determining compliance with the agreement; (4) the revocation of such conveyance upon any material breach of the agreement referred to in paragraph (3); (5) the conveyance from the unit of general local government or State or the public agency designated by the unit of general local government or State of fee simple title to such property without consideration upon compliance with the agreement; (6) a coordinated approach toward neighborhood improvement through the homestead program and the upgrading of community services and facilities; and (7) an equitable procedure for selecting the recipients of such properties that (A) gives a special priority to applicants (i) whose current housing fails to meet standards of health and safety, including overcrowding; (ii) who currently pay in excess of 30 percent of their income for shelter; and (iii) who have little prospect of obtaining improved housing within the foreseeable future through means other than homesteading; (B) excludes applicants who are currently homeowners; and (C) takes into account the capacity of the applicant to contribute a substantial amount of labor to the rehabilitation process, or to obtain assistance from private sources, community organizations, or other sources. The Secretary may approve such other programs as he determines to reasonably fulfill these criteria. (c) The Secretary is authorized to enter into agreements with units of general local government or State or public agencies designated by units of general local government or State to provide technical assistance for the administration of urban homestead programs which meet the requirements of subsection (b) or (h) and to individuals and families who are participants in such programs. (d) The Secretary is authorized to issue such rules and regulations as may be necessary to carry out his functions under this section. (e) The Secretary shall conduct a continuing evaluation of programs carried out pursuant to this section and, beginning with the third year commencing after the date of enactment of this section, shall transmit to the Congress an annual report containing a summary of his evaluation of such programs and his recommendations for future conduct of such programs. (f) In order to facilitate planning for purposes of this section, the Secretary, the Secretary of Agriculture, and the Administrator of Veterans' Affairs shall, upon request of a unit of general local gov ernment or a State or a public agency designated by a unit of general local government or a State, provide a listing of all unoccupied residential properties to which the Secretary, the Secretary of Agriculture, or the Administrator holds title and which are located within the geographic jurisdiction of such unit, State, or agency. Such listing shall be accessible to the public during ordinary business hours at the offices of such unit of general local government, State, or public agency. (g)(1) The Secretary is authorized to reimburse the Administrator of Veterans' Affairs, in an amount to be agreed upon by the Secretary and the Administrator, for property which the Administrator conveys to a unit of general local government, State, or agency for use in connection with an urban homesteading program approved by the Secretary. (2) The Secretary is authorized to reimburse the Secretary of Agriculture, in an amount to be agreed upon by the Secretary and the Secretary of Agriculture, for property which the Secretary of Agriculture conveys to a unit of general local government, State, or agency for use in connection with an urban homesteading program approved by the Secretary. (h)(1) The Secretary may, on a demonstration basis during fiscal years 1984 and 1985, convey to any unit of general local government or public agency designated by such unit of general local government any real property (A) to which the Secretary holds title; and (B) that the Secretary determines to be suitable for a multifamily homesteading program that complies with the requirements of paragraph (2); for such consideration, if any, as may be agreed upon between the Secretary and such unit of general local government or public agency. (2) Any multifamily homesteading program carried out by any unit of general local government or public agency designated by any such unit of general local government shall be considered a multifamily homesteading program that complies with the requirements of this subsection if the Secretary determines that such program contains adequate assurances that— (A) the primary use of all homestead properties following conversion or rehabilitation shall be residential; and (B) not less than 75 percent of the residential occupants of homestead properties following conversion or rehabilitation shall be lower income families. (3) As used in this subsection and subsection (i) the term "lower income families" has the meaning given such term in section 3(b)(2) of the United States Housing Act of 1937. (i)(1) The Secretary shall use not more than $1,000,000 of the amounts appropriated under this section for each of the fiscal years 1984 and 1985 to undertake a program to demonstrate the feasibility of providing assistance to State or local governments or their agencies for the purchase of any real property that (A) is improved by one- to four-family residence; (B) is not occupied by a person legally entitled to reside there; 36-210 0-84-5 (C) is designated by a State or general unit of local government for use in a single family homestead program; and (D) will be conveyed to lower income families under such program upon condition that each such family agrees (i) to occupy the property as a principal residence for a period of not less than 5 years, except under such emergency standards as may be prescribed by the Secretary; (ii) to repair all defects in the property that pose a substantial danger to health or safety within 1 year of the date of the initial conveyance; and (iii) to make such repairs and improvements to the property as may be necessary to meet applicable local standards for decent, safe, and sanitary housing within 3 years after the date of the initial conveyance. (2) The Secretary shall give a preference to demonstrations under this subsection involving the acquisition of properties that become available in satisfaction of public liens such as tax liens. (j) The Secretary shall conduct a continuing evaluation of the demonstration programs carried out under subsections (h) and (i) and shall transmit to the Congress a report not later than December 31, 1985, containing a summary of his evaluation of all such programs and his recommendations for the future conduct of such programs. (k) To reimburse the housing loan funds for properties transferred pursuant to this section, and to carry out the provisions of subsections (c), (g), (h), and (i), there are authorized to be appropriated not to exceed $12,000,000 for fiscal year 1984, and such sums as may be necessary for fiscal year 1985. Any amounts so appropriated shall remain available until expended. Approved August 22, 1974. * |