Page:United States Statutes at Large Volume 106 Part 5.djvu/111

 PUBLIC LAW 102-550—OCT. 28, 1992 106 STAT. 3749 (6) UNIT OF GENERAL LOCAL GOVERNMENT.—The term "unit of general local government" means any borough, city, county, parish, town, township, village, or other general purpose political subdivision of a State. (c) ASSISTANCE TO NONPROFIT ORGANIZATIONS. — (1) IN GENERAL. — The Secretary may provide assistance to nonprofit organizations to carry out enterprise zone homeownership opportunity programs to promote homeownership in federally approved and equivalent State-approved enterprise zones in accordance with the provisions of this section. Such assistance shall be made in the form of grants. (2) APPLICATIONS. — Applications for assistance under this section shall be made in such form, and in accordance with such procedures, as the Secretary may prescribe. (d) ELIGIBLE USES OF ASSISTANCE.— (1) IN GENERAL. —Any nonprofit organization receiving assistance under this section shall use such assistance to provide loans to families purchasing homes constructed or rehabilitated in accordance with an enterprise zone homeownership opportunity program approved under this section. (2) SPECIFIC REQUIREMENTS. —Each loan made to a family under this subsection shall— (A) be secured by a second mortgage held by the Secretary on the property involved; (B) be in an amount not exceeding $15,000; (C) bear no interest; and (D) be repayable to the Secretary upon the sales, lease, or other transfer of such property. (e) PROGRAM REQUIREMENTS.- (1) IN GENERAL. — Assistance provided under this section may be used onl}^ in connection with an enterprise zone homeownership opportunity program of construction or rehabilitation of homes. (2) FAMILY NEED.— Each family purchasing a home under this section shall— (A) have a family income on the date of such purchase that is not more than the median income for a family of 4 persons (adjusted for family size) in the metropolitan statistical area in which a federally approved or equivalent State-approved enterprise zone is located; and (B) not have owned a home during the 3-year period preceding such purchase. (3) DOWNPAYMENT.—Each family purchasing a home under this section shall make a downpayment of not less than 5 percent of the sale price of such home. (4) LEASING PROHIBITION.—No family purchasing a home under this section may lease such home. (f) TERMS AND CONDITIONS OF ASSISTANCE.— (1) LOCAL CONSULTATION. — No proposed enterprise zone homeownership opportunity program may be approved by the Secretary under this section vmless the applicant involved demonstrates to the satisfaction of the Secretary that— (A) it has consulted with and received the support of residents of the neighborhood in which such program is to be located; and (B) it has the approval of each unit of general local government in which such program is to be located.

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