§ 1701z-4. — Abandoned properties demonstration project.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1701z-4]
TITLE 12--BANKS AND BANKING
CHAPTER 13--NATIONAL HOUSING
Sec. 1701z-4. Abandoned properties demonstration project
(a) Grants for arrest of incipient abandonment and revitalization of
blighted areas
In carrying out activities under section 1701z-1 of this title, the
Secretary may undertake programs to demonstrate the most feasible means
of providing assistance to localities in which a substantial number of
structures are abandoned or are threatened with abandonment for the
purpose of arresting the process of housing abandonment in its
incipiency or in restoring viability to blighted areas in which
abandonment is pervasive. For this purpose, the Secretary is authorized
to make grants, subject to the limitations of this section, to assist
local public bodies in planning and implementing demonstration projects
for prompt and effective action in alleviating and preventing such
abandonment in designated demonstration areas.
(b) Preferred projects; scope of projects
In administering this section, the Secretary shall give preference
to those demonstration projects which in his judgment can reasonably be
expected to arrest the process of abandonment in the demonstration area
within a period of two years and which provide for innovative approaches
to combating the problem of housing abandonment. Such projects may
include, but shall not be limited to (1) acquisition by negotiated
purchase, lease, receivership, tax lien proceedings, or other means
authorized by law and satisfactory to the Secretary, of real property
within the demonstration area or areas which is abandoned, deteriorated,
or in violation of applicable code standards; (2) the repair of streets,
sidewalks, parks, playgrounds, publicly owned utilities, public
buildings to meet needs consistent with the revitalization and continued
use of the area; (3) the demolition of structures determined to be
structurally unsound or unfit for human habitation or which contribute
adversely to the physical or social environment of the locality
involved; (4) the establishment of recreational or community facilities
including public playgrounds; (5) the improvement of garbage and trash
collection, street cleaning and other essential services necessary to
the revitalization and maintenance of the area; (6) the rehabilitation
of privately and publicly owned real property by the locality; and (7)
the establishment and operation of locally controlled, nonprofit housing
management corporations and municipal repair programs.
(c) Purchase or lease of project real estate at fair market value for
new or rehabilitated housing use; conditions
Subject to such conditions as the Secretary may prescribe, real
property held as part of a project assisted under this section may be
made available to (1) a limited dividend corporation, nonprofit
corporation, or association, cooperative or public body or agency, or
other approved purchaser or lessee, or (2) a purchaser who would be
eligible for a mortgage insured under section 1715l(d)(3) or (d)(4),
section 1715l(h)(1), section 1715z(i) or (j)(1), or section 1715z-1 of
this title, for purchase or lease at fair market value for use by such
purchaser or lessee, as, or in the provision of, new or rehabilitated
housing for occupancy by families or individuals of low or moderate
income.
(d) Amount of grants; authorization of appropriations; continuing
availability of funds; locality limitation
Grants under this section shall be in amounts which do not exceed 90
per centum of the net project cost as determined by the Secretary. There
are authorized to be appropriated for demonstration grants under this
section not to exceed $20,000,000 for the fiscal year ending June 30,
1971. Any amounts appropriated shall remain available until expended and
any amount authorized but not appropriated may be appropriated for any
succeeding fiscal year commencing prior to July 1, 1972. Not more than
one-third of the aggregate amount of grants made in any fiscal year
under this section shall be made with respect to projects undertaken by
one locality.
(e) Projects as part of urban renewal projects for purpose of
application of urban renewal provisions
The provisions of sections 1456, 1465, and 1466 \1\ of title 42, and
section 1452b \1\ of title 42, may apply to projects assisted under this
Act as if such projects were being carried out in urban renewal areas as
part of urban renewal projects within the meaning of section 1460 \1\ of
title 42.
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\1\ See References in Text note below.
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(Pub. L. 91-609, title V, Sec. 505, Dec. 31, 1970, 84 Stat. 1787; Pub.
L. 99-386, title I, Sec. 105(a), Aug. 22, 1986, 100 Stat. 822.)
References in Text
Sections 1456, 1460, and 1466 of title 42, referred to in subsec.
(e), were omitted from the Code pursuant to section 5316 of Title 42,
The Public Health and Welfare, which terminated authority to make grants
or loans under those sections after Jan. 1, 1975.
Section 1465 of title 42, referred to in subsec. (e), was repealed
by Pub. L. 91-646, title II, Sec. 220(a)(5), Jan. 2, 1971, 84 Stat.
1903. See section 4601 et seq. of Title 42.
Section 1452b of title 42, referred to in subsec. (e), was repealed
by Pub. L. 101-625, title II, Sec. 289(b)(1), Nov. 28, 1990, 104 Stat.
4128.
Codification
Section was enacted as part of the Housing and Urban Development Act
of 1970, and not as part of the National Housing Act which comprises
this chapter.
Amendments
1986--Subsec. (f). Pub. L. 99-386 struck out subsec. (f) which
related to annual reports to Congress by Secretary with respect to
status of demonstration projects.
Section Referred to in Other Sections
This section is referred to in section 1701z-2 of this title.
