§ 4145. — Delivery of assistance through intermediaries.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC4145]
TITLE 12--BANKS AND BANKING
CHAPTER 42--LOW-INCOME HOUSING PRESERVATION AND RESIDENT HOMEOWNERSHIP
SUBCHAPTER II--TECHNICAL ASSISTANCE AND CAPACITY BUILDING
Sec. 4145. Delivery of assistance through intermediaries
(a) In general
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.
(2) Priority
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 \1\ or
under the Emergency Low Income Housing Preservation Act of 1987.
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\1\ See References in Text note below.
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(3) Criteria
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.
(6) Preference
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 26;
(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.
(Pub. L. 100-242, title II, Sec. 255, as added Pub. L. 102-550, title
III, Sec. 312, Oct. 28, 1992, 106 Stat. 3767.)
References in Text
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, Sec. 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. 100-242 was amended
generally by Pub. L. 101-625, title VI, Sec. 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.
Section Referred to in Other Sections
This section is referred to in section 4143 of this title.
