12 USC 1715 - Disposition of HUD-owned properties

View all text of Subchapter II [§ 1707 - § 1715z-25]

§ 1715z–11a. Disposition of HUD-owned properties

(a) Flexible authority for multifamily projects

(b) Transfer of unoccupied and substandard housing to local governments and community development corporations

(1) Transfer authority

(2) Qualified HUD propertiesFor purposes of this subsection, the term “qualified HUD property” means any property for which, as of the date that notification of the property is first made under paragraph (3)(B), not less than 6 months have elapsed since the later of the date that the property was acquired by the Secretary or the date that the property was determined to be unoccupied or substandard, that is owned by the Secretary and is—

(A) an unoccupied multifamily housing project;

(B) a substandard multifamily housing project; or

(i) has been determined by the Secretary not to be an eligible asset under section 1710(h) of this title; or

(ii) is an eligible asset under such section 1710(h) of this title, but—(I) is not subject to a specific sale agreement under such section; and(II) has been determined by the Secretary to be inappropriate for continued inclusion in the program under such section 1710(h) of this title pursuant to paragraph (10) of such section.

(3) TimingThe Secretary shall establish procedures that provide for—

(A) time deadlines for transfers under this subsection;

(B) notification to units of general local government and community development corporations of qualified HUD properties in their jurisdictions;

(D) a right of first refusal for transfer of qualified HUD properties to units of general local government and community development corporations, under which—

(i) the Secretary shall establish a period during which the Secretary may not transfer such properties except to such units and corporations;

(ii) the Secretary shall offer qualified HUD properties that are single family properties for purchase by units of general local government at a cost of $1 for each property, but only to the extent that the costs to the Federal Government of disposal at such price do not exceed the costs to the Federal Government of disposing of property subject to the procedures for single family property established by the Secretary pursuant to the authority under the last sentence of section 1710(g) of this title;

(iii) the Secretary may accept an offer to purchase a property made by a community development corporation only if the offer provides for purchase on a cost recovery basis; and

(iv) the Secretary shall accept an offer to purchase such a property that is made during such period by such a unit or corporation and that complies with the requirements of this paragraph; and

(E) a written explanation, to any unit of general local government or community development corporation making an offer to purchase a qualified HUD property under this subsection that is not accepted, of the reason that such offer was not acceptable.

(4) Other disposition

(5) Satisfaction of indebtedness

(6) Determination of status of propertiesTo ensure compliance with the requirements of this subsection, the Secretary shall take the following actions:

(A) Upon enactment

(B) Upon acquisition

(7) Tenant leases

(8) Use of property

(9) Inapplicability to properties made available for homeless

(10) Protection of existing contracts

(11) DefinitionsFor purposes of this subsection, the following definitions shall apply:

(A) Community development corporation

(B) Cost recovery basis

(D) Residential property

(E) Secretary

(F) Severe physical problemsThe term “severe physical problems” means, with respect to a dwelling unit, that the unit—

(i) lacks hot or cold piped water, a flush toilet, or both a bathtub and a shower in the unit, for the exclusive use of that unit;

(ii) on not less than three separate occasions during the preceding winter months, was uncomfortably cold for a period of more than 6 consecutive hours due to a malfunction of the heating system for the unit;

(iii) has no functioning electrical service, exposed wiring, any room in which there is not a functioning electrical outlet, or has experienced three or more blown fuses or tripped circuit breakers during the preceding 90-day period;

(iv) is accessible through a public hallway in which there are no working light fixtures, loose or missing steps or railings, and no elevator; or

(v) has severe maintenance problems, including water leaks involving the roof, windows, doors, basement, or pipes or plumbing fixtures, holes or open cracks in walls or ceilings, severe paint peeling or broken plaster, and signs of rodent infestation.

(G) Single family property

(H) Substandard

(I) Unit of general local government

(J) Unoccupied

(12) Regulations

(A) Interim

(B) Final

(Pub. L. 104–204, title II, § 204, Sept. 26, 1996, 110 Stat. 2894; Pub. L. 105–65, title II, § 213, Oct. 27, 1997, 111 Stat. 1366; Pub. L. 105–276, title II, § 206, Oct. 21, 1998, 112 Stat. 2484; Pub. L. 106–74, title V, § 537, Oct. 20, 1999, 113 Stat. 1122; Pub. L. 106–377, § 1(a)(1) [title II, § 204], Oct. 27, 2000, 114 Stat. 1441, 1441A–24; Pub. L. 106–554, § 1(a)(7) [title I, § 141], Dec. 21, 2000, 114 Stat. 2763, 2763A–614; Pub. L. 109–171, title II, § 2003(a), Feb. 8, 2006, 120 Stat. 9.)