---
kind: "section"
citation: "42 U.S.C. § 12744"
title: "42"
title_heading: "The Public Health and Welfare"
number: "12744"
heading: "Income targeting"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/12744"
units:
  - "Chapter 130 — National Affordable Housing"
  - "Subchapter II — Investment in Affordable Housing"
  - "Part A — HOME Investment Partnerships"
---

# §12744. Income targeting


Each [participating jurisdiction](/usc/42/12704.md?p=4) shall invest funds made available under this part within each fiscal year so that—

- (1) with respect to rental assistance and rental units—
  - (A) not less than 90 percent of (i) the [families](/usc/42/12704.md?p=11) receiving such rental assistance are [families](/usc/42/12704.md?p=11) whose incomes do not exceed 60 percent of the median family income for the area, as determined by the [Secretary](/usc/42/12704.md?p=16) with adjustments for smaller and larger [families](/usc/42/12704.md?p=11), (except that the [Secretary](/usc/42/12704.md?p=16) may establish income ceilings higher or lower than 60 percent of the median for the area on the basis of the [Secretary](/usc/42/12704.md?p=16)’s findings that such variations are necessary because of prevailing levels of [construction](/usc/42/300s–3.md?p=7) cost or fair market rent, or unusually high or low family income) at the time of occupancy or at the time funds are invested, whichever is later, or (ii) the dwelling units assisted with such funds are occupied by [families](/usc/42/12704.md?p=11) having such incomes; and
  - (B) the remainder of (i) the [families](/usc/42/12704.md?p=11) receiving such rental assistance are households that qualify as [low-income families](/usc/42/12704.md?p=10) (other than [families](/usc/42/12704.md?p=11) described in [subparagraph (A)](#1-A)) at the time of occupancy or at the time funds are invested, whichever is later, or (ii) the dwelling units assisted with such funds are occupied by such households;
- (2) with respect to homeownership assistance, 100 percent of such funds are invested with respect to dwelling units that are occupied by [families](/usc/42/12704.md?p=11) with a household income that does not exceed 100 percent of the median family income of the area, as determined by the [Secretary](/usc/42/12704.md?p=16); and
- (3) all such funds are invested with respect to [housing](/usc/42/12704.md?p=8) that qualifies as affordable [housing](/usc/42/12704.md?p=8) under [section 12745 of this title](/usc/42/12745.md).

## Source credit

(Pub. L. 101–625, title II, § 214, Nov. 28, 1990, 104 Stat. 4101; Pub. L. 103–233, title II, § 202, Apr. 11, 1994, 108 Stat. 364; Pub. L. 105–276, title V, § 599B(a), Oct. 21, 1998, 112 Stat. 2660; Pub. L. 119–101, title V, § 501(c)(1), July 11, 2026, 140 Stat. 907.)

## Notes

### Editorial Notes

### Amendments

2026—Par. (2). Pub. L. 119–101 substituted “families with a household income that does not exceed 100 percent of the median family income of the area, as determined by the Secretary” for “households that qualify as low-income families”.

1998—Par. (2). Pub. L. 105–276 struck out “at the time of occupancy or at the time funds are invested, whichever is later” before “; and”.

1994—Par. (1)(A). Pub. L. 103–233, § 202(1), substituted “(i) the families receiving such rental assistance are” for “such funds are invested with respect to dwelling units that are occupied by”, “, or” for “, and” before cl. (ii), and added cl. (ii).

Par. (1)(B). Pub. L. 103–233, § 202(2), substituted “(i) the families receiving such rental assistance are” for “such funds are invested with respect to dwelling units that are occupied by” and added cl. (ii).

### Statutory Notes and Related Subsidiaries

### Effective Date of 1998 Amendment

Pub. L. 105–276, title V, § 599B(c), Oct. 21, 1998, 112 Stat. 2660, provided that: “The amendments made by this section [amending this section and section 12745 of this title] are made on, and shall apply beginning upon, the date of the enactment of this Act [Oct. 21, 1998].”

### Effective Date of 1994 Amendment

Amendment by Pub. L. 103–233 applicable with respect to any amounts made available to carry out this subchapter after Apr. 11, 1994, and any amounts made available to carry out this subchapter before that date that remain uncommitted on that date, with Secretary to issue any regulations necessary to carry out such amendment not later than end of 45-day period beginning on that date, see section 209 of Pub. L. 103–233, set out as a note under section 5301 of this title.