The Secretary shall approve and disburse assistance under section
4143 of this title through eligible intermediaries selected by the Secretary under subsection (b) of this section. If the Secretary does not receive an acceptable proposal from an intermediary offering to administer assistance under this section in a given State, the Secretary shall administer the program in such State directly.
(b) Selection of eligible intermediaries
(1) In general
The Secretary shall develop criteria to select eligible intermediaries, through a competitive process, to administer assistance under this subchapter. The process shall include provision for a reasonable administrative fee.
With respect to all forms of grants available under section
4143 of this title, such criteria shall give priority to applications from eligible intermediaries with demonstrated expertise or experience with the program established under this title  or under the Emergency Low Income Housing Preservation Act of 1987.
The criteria developed under this subsection shall—
(A)not assign any preference or priority to applications from eligible intermediaries based on their previous participation in administering or receiving Federal grants or loans (but may exclude applicants who have failed to perform under prior contracts of a similar nature);
(B)require an applicant to prepare a proposal that demonstrates adequate staffing, qualifications, prior experience, and a plan for participation; and
(C)permit an applicant to serve as the administrator of assistance made available under section
4143(d) or (e) of this title, based on the applicant’s suitability and interest.
(4) Geographic coverage
The Secretary may select more than 1 State or regional intermediary for a single State or region. The number of intermediaries chosen for each State or region may be based on the number of eligible low-income housing projects in the State or region, provided there is no duplication of geographic coverage by intermediaries in the administration of the direct assistance grant program.
(5) National nonprofit intermediaries
National nonprofit intermediaries shall be selected to administer the assistance made available under section
4143 of this title only with respect to States or regions for which no other eligible intermediary, acceptable to the Secretary, has submitted a proposal to participate.
With respect to assistance made available under section
4144 of this title, preference shall be given to eligible regional, State, and local intermediaries, over national nonprofit organizations.
(c) Conflicts of interest
Eligible intermediaries selected under subsection (b) of this section to disburse assistance under section
4143 of this title shall certify that they will serve only as delegated program administrators, charged with the responsibility for reviewing and approving grant applications on behalf of the Secretary. Selected intermediaries shall—
(1)establish appropriate procedures for grant administration and fiscal management, pursuant to standards established by the Secretary; and
(2)receive a reasonable administrative fee, except that they may not provide other services to grant recipients with respect to projects that are the subject of the grant application and may not receive payment, directly or indirectly, from the proceeds of grants they have approved.
(d) “Eligible intermediary” defined
For purposes of this section, the term “eligible intermediary” means a State, regional, or national organization (including a quasi-public organization) or a State or local housing agency that—
(1)has as a central purpose the preservation of existing affordable housing and the prevention of displacement;
(2)does not receive direct Federal appropriations for operating support;
(3)in the case of a national nonprofit organization, has been in existence for at least 5 years prior to the date of application and has been classified by the Internal Revenue Service as an exempt organization under section
501(c)(3) of title
(4)in the case of a regional or State nonprofit organization, has been in existence for at least 3 years prior to the date of application and has been classified by the Internal Revenue Service as an exempt organization under section
501(c)(3) of title
26 or is otherwise a tax-exempt entity;
(5)has a record of service to low-income individuals or community-based nonprofit housing developers in multiple communities and, with respect to intermediaries administering assistance under section
4143 of this title, has experience with the allocation or administration of grant or loan funds; and
(6)meets standards of fiscal responsibility established by the Secretary.
This title, referred to in subsec. (b)(2), means title II of Pub. L. 100–242, as amended by Pub. L. 101–625, title VI, § 601(a),Nov. 28, 1990, 104 Stat. 4249, known as the Low-Income Housing Preservation and Resident Homeownership Act of 1990, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section
4101 of this title and Tables.
The Emergency Low Income Housing Preservation Act of 1987, referred to in subsec. (b)(2), is title II of Pub. L. 100–242, Feb. 5, 1988, 101 Stat. 1877, as amended, which was classified principally as a note under section
1715l of this title. Title II of Pub. L. 100–242was amended generally by Pub. L. 101–625, title VI, § 601(a),Nov. 28, 1990, 104 Stat. 4249, and is now known as the Low-Income Housing Preservation and Resident Homeownership Act of 1990, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section
4101 of this title and Tables.
The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.
The most recent Classification Table update that we have noticed was Tuesday, August 13, 2013
An empty table indicates that we see no relevant changes listed in the classification tables. If you suspect that our system may be missing something, please double-check with the Office of the Law Revision Counsel.
Description of Change
Statutes at Large
LII has no control over and does not endorse any external Internet site that contains links to or references LII.