Laws: Cases and Codes : U.S. Code : Title 12 : Section 1701y


   
U.S. Code as of: 01/19/04
Section 1701y. National Homeownership Foundation

    (a) Creation; purpose; articles of incorporation and charter;
      reservation of right to alter or amend charter; term; principal
      office; administration as charitable and educational foundation;
      compensation of officers and employees; contract authority;
      donations and grants; payment of principal and interest on
      borrowings
      (1) There is hereby created a body corporate to be known as the
    "National Homeownership Foundation" (hereinafter referred to as the
    "Foundation") to carry out a continuing program of encouraging
    private and public organizations at the national, community, and
    neighborhood levels to provide increased homeownership and housing
    opportunities in urban and rural areas for lower income families
    through such means as - 
        (A) encouraging the investment in, and sponsoring of, housing
      for lower income families;
        (B) encouraging the establishment of programs of assistance and
      counseling to lower income families to enable them better to
      achieve and afford adequate housing;
        (C) providing a broad range of technical assistance through
      publications and advisory services to public and private
      organizations which are carrying out, or are desirous of carrying
      out, programs to expand homeownership and housing opportunities
      for lower income families; and
        (D) providing grants and loans to public and private
      organizations carrying out homeownership and housing opportunity
      programs for lower income families to help cover some of the
      expenses of such programs.

      (2) The Foundation shall be deemed to be a corporation without
    members organized and established under the provisions of the
    District of Columbia Nonprofit Corporation Act, with all the
    rights, powers, and responsibilities thereof except as limited by
    this section and any amendments thereto. This section shall
    constitute the articles of incorporation and charter of the
    Foundation, which shall not be an agency or instrumentality of the
    United States Government. The Congress expressly reserves the
    exclusive right to alter or amend this charter. The Foundation
    shall have succession until dissolved by Act of Congress. The
    Foundation shall maintain its principal office in the District of
    Columbia.
      (3) No part of the net earnings of the Foundation shall inure to
    the benefit of any private person, and no substantial part of its
    activities shall be devoted to attempting to influence legislation.
    The Foundation shall not participate or intervene in any political
    campaign on behalf of any candidate for public office. The
    Foundation shall be operated and administered at all times as a
    charitable and educational foundation.
      (4) No employee or officer of the Foundation shall receive
    compensation in excess of that received by or hereafter prescribed
    by law for heads of executive departments.
      (5) The Foundation shall make maximum use of existing public and
    private agencies and programs, and in carrying out its functions
    the Foundation is authorized to contract with individuals, private
    corporations, organizations, and associations, and with agencies of
    the Federal, State, and local governments.
      (6) The Foundation is authorized to receive donations and grants
    from individuals and from public and private organizations,
    foundations, and agencies.
      (7) The Foundation may use only donated funds, or funds derived
    from payment of interest on loans made by it, for the principal and
    interest payments on any borrowings.
    (b) Board of Directors; appointment of members; Chairman; terms of
      office; reappointment; compensation and travel expenses;
      Executive Director and other officers; vacancies; by-laws
      (1) The Foundation shall have a Board of Directors consisting of
    eighteen members, fifteen of whom shall be appointed by the
    President of the United States, with the advice and consent of the
    Senate. The other three members shall be, ex officio, the Secretary
    of Housing and Urban Development, the Secretary of Agriculture, and
    the Director of the Office of Economic Opportunity. The President
    shall appoint one of the fifteen appointed members to serve as
    Chairman of the Board during his term of office as a member.
      (2) Within thirty days after August 1, 1968, the President shall
    appoint the fifteen appointed members of the Board. Not more than
    five of such members shall, at the time of their appointment, be
    serving full time as officers or employees of the Federal
    Government, or as officers or employees of any State or local
    government. Each appointed member of the Board shall hold office
    for a term of three years, except that (A) any member appointed to
    fill a vacancy prior to the expiration of the term for which his
    predecessor was appointed shall be appointed for the remainder of
    such term, and (B) the terms of the members first taking office
    shall expire, as designated by the President at the time of
    appointment, five at the end of the first year, five at the end of
    the second year, and five at the end of the third year after the
    date of appointment. Members of the Board, however appointed, shall
    be eligible for reappointment, but at no time shall there be more
    than five members of the Board who at the time of their appointment
    or reappointment were full-time officers or employees of the
    Federal Government or of any State or local government.
      (3) Appointed members of the Board who are not employees of the
    Federal Government, while attending meetings or conferences of the
    Board or otherwise serving on business of the Board, shall be
    entitled to receive compensation at rates fixed by the President,
    but not exceeding $100 per day, including travel time, and while so
    serving away from their homes or regular places of business they
    may be allowed travel expenses, including per diem in lieu of
    subsistence, as authorized by section 5703 of title 5 for persons
    in the Government service employed intermittently.
      (4) The Board shall appoint an Executive Director of the
    Foundation. The Executive Director shall be the chief executive
    officer of the Foundation and shall serve at the pleasure of the
    Board, and all other executive officers and employees of the Board
    shall be responsible to him. The Board shall also cause to be
    appointed a secretary, a treasurer, and such other officers as may
    be necessary to conduct properly the business of the Foundation,
    and shall provide for filling vacancies in such offices.
      (5) The Board shall adopt bylaws for the Foundation which shall
    be made available for public inspection upon request.
    (c) Functions; programs to expand homeownership and housing
      opportunities for lower income families; fees for assistance or
      services
      (1) The Foundation shall assist public and private organizations,
    at their request, in initiating, developing, and conducting
    programs to expand homeownership and housing opportunities for
    lower income families. To provide such assistance and to carry out
    the purposes of this section, the Foundation is authorized to - 
        (A) carry out a continuing program of encouraging private and
      public organizations at the national, community, and neighborhood
      levels in the establishment of such programs;
        (B) assist in the formation of organizations the purpose of
      which is the development and carrying out of such programs,
      including the establishment of local development funds for
      financing housing for lower income families through the pooling
      of moneys from private sources;
        (C) identify and arrange for the technical and managerial
      assistance and personnel needed for the successful operation of
      such programs by public and private organizations;
        (D) assist public and private organizations in obtaining the
      mortgage financing, insurance, and other requirements or aids
      necessary for conducting programs of housing construction,
      rehabilitation, or improvement for lower income families;
        (E) arrange for, or provide on a limited basis, training for
      persons in the skills needed in administering programs of
      homeownership and housing opportunity for lower income families;
        (F) encourage research and innovation, and collect and make
      available such information as may be desirable to further the
      purposes of this section, including but not limited to such
      activities as the sponsoring of seminars, conferences, and
      meetings and the establishment of a continuing information
      program to acquaint lower income families with the means they can
      use to improve the quality of their housing and the homeownership
      and housing opportunities available to them;
        (G) assist private and public organizations in establishing, in
      connection with their homeownership and housing opportunity
      programs for lower income families, counseling and similar
      activities designed to advise lower income families of the means
      available to better themselves economically through job training
      and manpower development programs; and
        (H) perform other similar services in order to further the
      purposes of this section.

      (2) The Foundation may, if it deems it appropriate, charge a
    reasonable fee for any assistance or service provided under this
    subsection.
    (d) Grants and loans to public or private organizations;
      eligibility; encouragement of cooperation between organizations
      and neighborhoods and communities
      (1) In order to assist public and private organizations which are
    carrying out homeownership and housing opportunity programs for
    lower income families to fill unmet needs, initiate exceptional
    programs, and experiment with new approaches and programs, the
    Foundation is authorized, subject to such terms and conditions as
    it may prescribe, to make grants and loans to such organizations to
    help defray the following expenses:
        (A) organizational and administrative expenses incurred in
      commencing the operation of a program, or in expanding an
      existing program, to the extent that the activities are related
      to providing homeownership and housing opportunities for lower
      income families;
        (B) necessary preconstruction costs incurred for architectural
      assistance, land options, application fees, and similar items;
      and
        (C) the cost of carrying out programs providing counseling or
      similar services to lower income families for whom housing is
      being provided, in order to enable those families better to
      achieve and afford adequate housing, in such matters as home
      management, budget management, and home maintenance.

      (2) In order to be eligible for a grant or loan under this
    subsection, the organization seeking such assistance shall
    demonstrate to the satisfaction of the Foundation that the funds
    requested are not otherwise available from Federal sources:
    Provided, That a grant or loan under this subsection may be
    provided to help cover that portion of the cost of an eligible
    activity not covered by Federal funds.
      (3) The Foundation shall encourage cooperation between public and
    private organizations carrying out programs of homeownership and
    housing opportunity for lower income families and the neighborhoods
    and communities affected by such programs. To help assure such
    cooperation and in order to coordinate, to the maximum extent
    feasible, any construction or rehabilitation activities with the
    development goals of the neighborhood or community affected, no
    application for a loan or grant under this subsection shall be
    considered unless such application has been submitted to the
    governing body of the community affected, or to such other entity
    of local government as may be designated by the governing body, for
    such recommendations as the local governing body or its designee
    may desire to make. Any recommendations so made shall be given
    careful consideration by the Foundation before taking final action
    on any such application. If, upon the expiration of thirty days
    after any such application has been submitted to such governing
    body or its designee, such body or designee fails to provide such
    recommendations, the application may be considered without the
    benefit of such recommendations.
    (e) Coordination of activities and consultation with Department of
      Housing and Urban Development and other Federal departments and
      agencies
      The Foundation shall coordinate its activities and consult with
    the Department of Housing and Urban Development and other Federal
    departments and agencies engaged in providing homeownership and
    housing opportunities for lower income families.
    (f) Annual report to the President and the Congress; contents
      (1) Not later than one hundred and twenty days after the close of
    each fiscal year, the Foundation shall prepare and submit to the
    President and to the Congress a full report of its activities
    during such year. Such report shall include an account of the
    Foundation's experiences with the efforts of private and public
    organizations to expand homeownership and housing opportunities for
    lower income families, together with such recommendations as it
    deems appropriate.
      (2) Whenever in its judgement the general unavailability of
    mortgage funds is sufficiently serious to deter the Foundation from
    carrying out its objective of expanding homeownership and housing
    opportunities for lower income families, the Foundation shall, in
    its annual report or in a separate report to the President and the
    Congress, state its findings and make such recommendations for
    alternate means of financing housing for such families as it deems
    appropriate.
    (g) Audit of financial transaction; access to records; report of
      audit; contents of report
      (1) The financial transactions of the Foundation shall be audited
    by the General Accounting Office in accordance with the principles
    and procedures applicable to commercial corporate transactions and
    under such rules and regulations as may be prescribed by the
    Comptroller General of the United States. The representatives of
    the General Accounting Office shall have access to all books,
    accounts, financial records, reports, files, and all other papers,
    things, or property belonging to or in use by the Foundation and
    necessary to facilitate the audit, and they shall be afforded full
    facilities for verifying transactions with the balances or
    securities held by depositories, fiscal agents, and custodians. The
    audit shall cover the fiscal year corresponding to that of the
    United States Government.
      (2) A report of each such audit shall be made by the Comptroller
    General to the Congress not later than six and one-half months
    following the close of the last year covered by such audit. The
    report shall set forth the scope of the audit and shall include a
    statement of assets and liabilities, capital, and surplus or
    deficit; a statement of sources and application of funds; and such
    comments and information as may be deemed necessary to keep the
    Congress informed of the operations and financial condition of the
    Foundation, together with such recommendations with respect thereto
    as the Comptroller General may deem advisable. The report shall
    also show specifically any program, expenditure, or other financial
    transaction or undertaking, observed in the course of the audit,
    which, in the opinion of the Comptroller General, has been carried
    on or made without authority of law. A copy of each report shall be
    furnished to the President and to the Foundation at the time
    submitted to the Congress.
    (h) Deposit of funds of Foundation
      Funds of the Foundation shall be deposited, to the extent
    practicable, in accounts with financial institutions which are
    actively engaged in making loans or are otherwise carrying on
    activities in furtherance of homeownership and housing
    opportunities for lower income families.
    (i) Authorization of appropriations
      There is authorized to be appropriated to the Foundation not to
    exceed $10,000,000 to carry out the purposes of this section.
    Appropriations made hereunder shall remain available until
    expended.



Previous [Notes] Next

Related Resources

Banking Law Guide

Banking Articles and Documents

Banking Discussion

Ads by FindLaw