§1437bb. Mutual help homeownership opportunity program

(a) Establishment

The Secretary shall carry out a mutual help homeownership opportunity program for Indian families in accordance with this section. The program shall be designed to meet the homeownership needs of Indian families on Indian reservations and other Indian areas, including Indian families whose incomes exceed the levels established for low-income families.

(b) Financial assistance

(1) In general

The Secretary may, to the extent provided in appropriation Acts, enter into contracts with Indian housing authorities under subchapter I of this chapter to provide financial assistance for the development, acquisition, operation, and improvement of housing projects under this section.

(2) Eligibility for CIAP

Notwithstanding the provisions of section 1437l(c) of this title, the Secretary may provide assistance provided for comprehensive modernization under section 1437l of this title for the housing projects under this section for the purposes under section 1437l of this title. Any assistance shall be provided under this paragraph only in the form of a grant for each housing project (or unit within a project) selected for such assistance.

(c) Eligible projects

(1) Project types

Projects for which assistance may be provided under this section may include single-family detached dwellings and other single-family dwellings (including row houses).

(2) Forms of ownership

In addition to fee simple ownership and other forms of ownership, the Secretary may permit and facilitate cooperative ownership for any project assisted under this section, if the Indian housing authority requests cooperative ownership and the Secretary determines such ownership to be appropriate for the project.

(3) Property standards

Property standards for projects assisted under this section shall be established by regulation, in accordance with section 1437ee of this title. The standards shall-

(A) provide sufficient flexibility to permit the use of different designs and materials; and

(B) include cost-effective energy conservation performance standards designed to ensure the lowest total construction and operating costs.

(d) Eligible families

(1) In general

Except as provided in paragraph (2), assistance under this section shall be limited to Indian low-income families on Indian reservations and other Indian areas.

(2) Exception

(A) Demonstrated need

An Indian housing authority may provide assistance under this section to families on Indian reservations and other Indian areas whose incomes exceed the levels established for low-income families, if the Indian housing authority demonstrates to the satisfaction of the Secretary that there is a need for housing for such families that cannot reasonably be met without such assistance. An Indian housing authority may provide assistance under this section to any non-Indian family on an Indian reservation or other Indian area if the Indian housing authority determines that the presence of the family on the Indian reservation or other Indian area is essential to the well-being of Indian families and the need for housing for the family cannot reasonably be met without such assistance.

(B) Limitation on number of units

The number of dwelling units in any project assisted under this section that may be occupied by or reserved for families on Indian reservations and other Indian areas whose incomes exceed the levels established for low-income families may not exceed whichever of the following is higher:

(i) 10 percent

10 percent of the dwelling units in the project.

(ii) 5 units

5 dwelling units.

(e) Mutual help and occupancy agreement

Each Indian housing authority operating a program under this section shall require each family selected for housing under this section to enter into a mutual help and occupancy agreement. The agreement shall provide the following:

(1) Family contribution

(A) General requirement

The family shall agree to contribute toward the development cost of a project in the form of land, labor, cash, or materials or equipment. The value of the contribution of each family shall not be less than $1,500.

(B) Contribution by Indian tribe

Contributions other than labor may be made by an Indian tribe on behalf of a family.

(2) Monthly payment

(A) Calculation

The family shall agree to make a monthly payment to the Indian housing authority that is equal to whichever of the following is higher:

(i) Percentage of adjusted income

An amount computed by-

(I) multiplying the monthly adjusted income of the family by a percentage that is not less than 15 percent and not more than 30 percent, as determined by the Indian housing authority to be appropriate; and

(II) subtracting the estimated monthly payments of the family for the reasonable use of utilities (excluding telephone service).

(ii) Administration charge

The amount budgeted by the Indian housing authority for monthly operating expenses on the dwelling of the family, excluding any operating cost for which operating assistance is provided by the Secretary under section 1437g of this title.

(B) Other applicable law

Monthly payments under this section shall be subject to section 203 of the Housing and Community Development Act of 1974.

(3) Maintenance and utilities

The family shall be responsible for the maintenance and monthly utility expenses of the dwelling. The Indian housing authority shall have in effect procedures determined by the Secretary to be sufficient for ensuring the timely periodic maintenance of the dwelling by the family.

(4) Homeownership opportunities

The Indian housing authority shall afford the family an opportunity to purchase the dwelling under a lease-purchase, mortgage, or loan agreement with the Indian housing authority or any other qualified entity, if the Indian housing authority determines (in accordance with objective standards and procedures established by the Secretary after consultation with Indian housing authorities) that the family is able to meet the obligations of homeownership.

(f) Self-help housing program

(1) Establishment

The Secretary shall establish a self-help housing program for projects assisted under this section.

(2) Requirements

In the case of any project approved by the Secretary for participation in the self-help housing program-

(A) each family shall make a contribution under subsection (e)(1) of this section in the form of labor in accordance with labor contribution requirements similar to the requirements applicable under the mutual self-help housing program established in section 1490c of this title; and

(B) the Secretary shall provide each family with technical and supervisory assistance similar to the assistance available under the mutual self-help housing program established in section 1490c of this title.

(3) Applications

Any Indian housing authority may submit an application to the Secretary for inclusion of a project assisted under this section in the self-help housing program.

(Sept. 1, 1937, ch. 896, title II, §202, as added June 29, 1988, Pub. L. 100–358, §2, 102 Stat. 676 ; amended Nov. 28, 1990, Pub. L. 101–625, title V, §§516, 572(1), 104 Stat. 4199 , 4236; Oct. 28, 1992, Pub. L. 102–550, title I, §122(b), 106 Stat. 3709 .)

References in Text

Section 203 of the Housing and Community Development Act of 1974, referred to in subsec. (e)(2)(B), is section 203 of Pub. L. 93–383, which is set out as a note under section 1437f of this title.

Amendments

1992-Subsec. (b)(2). Pub. L. 102–550 substituted "grant" for "single grant" in second sentence.

1990-Subsec. (a). Pub. L. 101–625, §572(1), substituted "low-income families" for "lower income families".

Subsec. (b). Pub. L. 101–625, §516, designated existing provisions as par. (1), inserted heading, and added par. (2).

Subsec. (d). Pub. L. 101–625, §572(1), substituted "low-income families" for "lower income families" wherever appearing.

Section Referred to in Other Sections

This section is referred to in title 20 section 7713.