Page:United States Statutes at Large Volume 122.djvu/2741

 12 2 STA T . 2 7 1 8PUBLIC LA W 11 0– 28 9—J UL Y3 0, 2008 ‘ ‘ (C)USEOFR E TU R N S .—TheS e cr e ta r ys ha l l ,b yre gu la - t ion , p ro v i d e that any return on a loan or other invest m ent o f any grant amount used by a State or State designated entity to provide a loan under this subsection shall be treated, for purposes of availability to and use by the State or State designated entity, as a grant amount author- i z ed under this subsection. ‘‘( D ) P RO HIB ITE D USES.—The Secretary shall, by regula- tion— ‘‘(i) set forth prohibited uses of grant amounts allocated under this subsection, w hich shall include use for— ‘‘( I ) political activities ‘‘(II) advocacy; ‘‘(III) lobbying, whether directly or through other parties; ‘‘(I V ) counseling services; ‘‘(V) travel e x penses; and ‘‘(VI) preparing or providing advice on tax returns; and for the purposes of this subparagraph, the prohib- ited use of funds for political activities includes influ- encing the selection, nomination, election, or appoint- ment of one or more candidates to any F ederal, State or local office as codified in section 501 of the Internal R evenue Code of 1 986 ( 2 6 U.S.C. 501); ‘‘(ii) provide that, except as provided in clause (iii), grant amounts of a State or State designated entity may not be used for administrative, outreach, or other costs of— ‘‘(I) the State or State designated entity; or ‘‘(II) any other recipient of such grant amounts; and ‘‘(iii) limit the amount of any grant amounts for a year that may be used by the State or State des- ignated entity for administrative costs of carrying out the program re q uired under this subsection, including home ownership counseling, to a percentage of such grant amounts of the State or State designated entity for such year, which may not exceed 10 percent. ‘‘( E ) PROHIBITION OF C ONSIDER A TION OF USE FOR M EETIN G HOUSING GOA L SORDUT Y TO SER V E.—In deter- mining compliance with the housing goals under this sub- part and the duty to serve underserved mar k ets under section 1 3 35, the Director may not consider any grant amounts used under this section for eligible activities under paragraph ( 7 ). The Director shall give credit toward the achievement of such housing goals and such duty to serve underserved markets to purchases by the enterprises of mortgages for housing that receives funding from such grant amounts, but only to the extent that such purchases by the enterprises are funded other than with such grant amounts. ‘‘(d) REDUCTION FOR FAILURE TO O BTAIN RETURN OF M ISUSED FUNDS.—If in any year a State or State designated entity fails to obtain reimbursement or return of the full amount required Regulations. Regulations.

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