Sec. 5. Authorized activities
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Amounts from a grant under this Act may be used only for transformational programs and activities in accordance with a transformation plan approved under section 6 that will further the purposes of this Act. Each transformation plan submitted pursuant to section 6 and implemented by a grantee under this Act shall include the following activities: The transformation of housing through rehabilitation, preservation, or demolition and replacement of severely distressed housing projects, expansion of affordable housing opportunities, or any combination thereof, which may incorporate energy-efficient design principles.
The one-for-one replacement of any public and assisted housing units demolished or disposed of in accordance with the requirements under section 8. Activities that promote economic self-sufficiency of residents of the revitalized housing and of the surrounding neighborhood. Activities that preserve affordable housing in the neighborhood and other activities necessary to ensure that existing public and assisted housing residents have access to the benefits of the neighborhood transformation.
Activities that demonstrate that each resident of housing assisted by the grant who is displaced by the transformation plan and who wishes to return to the revitalized on-site housing in the neighborhood or to replacement housing outside of the neighborhood, can return, and shall be provided a preference in accordance with the program requirements under section 7. Activities that meet the program requirements for replacement of housing units under section 8. Activities that meet the fair housing program requirements under section 9(a) and the accessibility requirements under section 9(b).
Appropriate service coordination and supportive services. Resident involvement, as described in section 7, in planning and implementation of the transformation plan, including reasonable steps to help ensure meaningful participation for residents who, as a result of their national origin, are limited in their English language proficiency. Monitoring, under section 7(g), of residents relocated during redevelopment throughout the term of the grant or until full occupancy of replacement housing, whichever is completed later.
Relocation assistance, including tenant-based rental assistance renewable under section 8 of the United States Housing Act of 1937 ( 42 U.S.C. 1437f ), mobility or relocation counseling over multiple years, reasonable moving costs, and security deposits. Establishment of links to local education efforts, as described in subsection (c)(3) of this section. Activities to comply with section 3 of the Housing and Urban Development Act of 1968 ( 12 U.S.C. 1701u ). Amounts from a grant under this Act may be used for the following activities:
Construction, acquisition, or rehabilitation of affordable housing (as such term is defined in section 15), which may include energy efficiency improvements and sustainable design features for such housing. Acquisition or disposition of residential properties, including properties subject to a mortgage previously insured, and foreclosed upon, by the Federal Housing Administration, and demolition. Outreach to local educators, and engaging in local community planning, to help increase access to educational opportunities, a continuum of effective community services, and strong family supports, and to improve the educational and life outcomes which have a significant benefit to residents of housing assisted under this Act, including children and youth and, as appropriate, for adult residents, including the elderly or persons with disabilities.
Providing supportive services (as such term is defined in section 15) which have a significant benefit to residents of housing assisted under this Act, primarily focused on services described in subparagraphs
(B)and
(C)of section 15(14). Rehabilitation and physical improvement of community facilities that are primarily intended to facilitate the delivery of community and supportive services which have a significant benefit to residents of housing assisted by the grant and residents of off-site replacement housing. Work incentives designed to help low-income residents assisted by the housing under this Act access jobs and move toward self-sufficiency. Partnering with employers and for-profit and nonprofit organizations to create jobs and job training opportunities which have a significant benefit to residents of housing assisted under this Act. Activities that promote sustainable housing by incorporating principles of sustainable design and development, including energy efficiency. Critical community improvements (as such term is defined in section 15 of this Act) undertaken at sites that are adjacent to, or in the immediate vicinity of, housing assisted under this Act. Loss reserves to protect residents of housing assisted by the grant and continue the project in the case of default, foreclosure, or any other adverse financial event. The Secretary shall require any grantee under this Act that will provide benefits under paragraph (3), (4), (5), or
(7)to any residents who are not living in housing assisted with a grant under this Act, to submit to the Secretary a plan identifying how such services will be provided. Activities carried out with amounts from a grant under this Act may be carried out through— endowments or revolving loan funds; or land assembly, land banking, and other activities, except that no amounts made available for use under this Act may be used to acquire any property by means of the exercise of the power of eminent domain. No amounts from a grant under this Act may be used for construction or rehabilitation of an elementary school or secondary school (as such terms are defined in section 9101 of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 7801 )) or an institution of higher education (as such term is defined in section 102 of the Higher Education Act of 1965 ( 20 U.S.C. 1002 )), except that such amounts may be used to construct common infrastructure that is shared by such a school or institution and by housing assisted under this Act, or community facilities authorized under subsection (c)(5), but only if costs are shared on a pro rata basis and the grantee certifies, and the Secretary determines, that such use of funds will not promote or further segregation. For each grant under this Act, the grantee shall comply with each of the following requirements: Of the amount of the grant, not more than 25 percent may be used for eligible activities under paragraphs
(3)through
(9)of subsection (c). Of the amount of the grant, not more than 5 percent may be used for eligible activities under paragraphs
(8)and
(9)of subsection (c). With respect to activities assisted pursuant to paragraph (2), the Secretary shall consult with the Secretary of Labor, the Secretary of Health and Human Services, the Secretary of Energy, the Secretary of Transportation, the Secretary of Education, and the Attorney General in identifying funding resources that may be provided to supplement amounts from grants under this Act.
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