--- kind: "section" citation: "42 U.S.C. § 1437bbb–1" title: "42" title_heading: "The Public Health and Welfare" number: "1437bbb–1" heading: "Flexible grant program" release: "119-102" url: "https://uscodex.org/usc/42/1437bbb-1" units: - "Chapter 8 — Low-Income Housing" - "Subchapter II–B — Home Rule Flexible Grant Demonstration" --- # §1437bbb–1. Flexible grant program - (a) **Authority and use—** The [Secretary](/usc/42/1437a.md?p=b-8) shall carry out a demonstration [program](/usc/42/274l–1.md?p=4) in accordance with the purposes under [section 1437bbb of this title](/usc/42/1437bbb.md) and the provisions of this subchapter. A [jurisdiction](/usc/42/1437bbb–8.md?p=1) approved by the [Secretary](/usc/42/1437a.md?p=b-8) for participation in the [program](/usc/42/274l–1.md?p=4) may receive and combine and enter into performance-based contracts for the use of amounts of [covered housing assistance](/usc/42/1437bbb–2.md?p=b), in the manner determined appropriate by the [participating jurisdiction](/usc/42/1437bbb–8.md?p=2), during the period of the [jurisdiction](/usc/42/1437bbb–8.md?p=1)’s participation— - (1) to provide [housing assistance](/usc/42/13641.md?p=3) and services for [low-income families](/usc/42/1437a.md?p=b-2-A) in a manner that facilitates the transition of such [families](/usc/42/1437a.md?p=b-3-A) to work; - (2) to reduce homelessness through providing permanent [housing](/usc/42/1490p–2.md?p=r-3) solutions; - (3) to increase homeownership among [low-income families](/usc/42/1437a.md?p=b-2-A); or - (4) for other [housing](/usc/42/1490p–2.md?p=r-3) purposes for [low-income families](/usc/42/1437a.md?p=b-2-A) determined by the [participating jurisdiction](/usc/42/1437bbb–8.md?p=2). - (b) **Period of participation—** A [jurisdiction](/usc/42/1437bbb–8.md?p=1) may participate in the demonstration [program](/usc/42/274l–1.md?p=4) under this subchapter for a period consisting of not less than 1 nor more than 5 fiscal years. - (c) **Participating jurisdictions—** - (1) **In general—** Subject to [paragraph (2)](#c-2), during the 4-year period consisting of fiscal years 1999 through 2002, the [Secretary](/usc/42/1437a.md?p=b-8) may approve for participation in the [program](/usc/42/274l–1.md?p=4) under this subchapter not more than an aggregate of 100 [jurisdictions](/usc/42/1437bbb–8.md?p=1) over the entire term of the demonstration [program](/usc/42/274l–1.md?p=4). A [jurisdiction](/usc/42/1437bbb–8.md?p=1) that was approved for participation in the demonstration [program](/usc/42/274l–1.md?p=4) under this subchapter in a fiscal year and that is continuing such participation in any subsequent fiscal year shall count as a [single](/usc/42/2304.md?p=m) [jurisdiction](/usc/42/1437bbb–8.md?p=1) for purposes of the numerical limitation under this paragraph. - (2) **Exclusion of high performing agencies—** Notwithstanding any other provision of this subchapter other than paragraph (4) of this subsection, the [Secretary](/usc/42/1437a.md?p=b-8) may approve for participation in the demonstration [program](/usc/42/274l–1.md?p=4) under this subchapter only [jurisdictions](/usc/42/1437bbb–8.md?p=1) served by [public housing agencies](/usc/42/1437a.md?p=b-6-A) that— - (A) are not designated as high-performing agencies, pursuant to their most recent scores under the [public housing](/usc/42/1437a.md?p=b-1) management [assessment program](/usc/42/10362.md?p=3) under [section 1437d(j)(2) of this title](/usc/42/1437d.md?p=j-2) (or any successor [assessment program](/usc/42/10362.md?p=3) for [public housing agencies](/usc/42/1437a.md?p=b-6-A)), as of the time of approval; and - (B) have a most recent score under the [public housing](/usc/42/1437a.md?p=b-1) management [assessment program](/usc/42/10362.md?p=3) under [section 1437d(j)(2) of this title](/usc/42/1437d.md?p=j-2) (or any successor [assessment program](/usc/42/10362.md?p=3) for [public housing agencies](/usc/42/1437a.md?p=b-6-A)), as of the time of approval, that is among the lowest 40 percent of the scores of all agencies. - (3) **Limitation on troubled and non-troubled PHAs—** Of the [jurisdictions](/usc/42/1437bbb–8.md?p=1) approved by the [Secretary](/usc/42/1437a.md?p=b-8) for participation in the demonstration [program](/usc/42/274l–1.md?p=4) under this subchapter— - (A) not more than 55 may be [jurisdictions](/usc/42/1437bbb–8.md?p=1) served by a [public housing agency](/usc/42/1437a.md?p=b-6-A) that, at the time of approval, is designated as a troubled agency under the [public housing](/usc/42/1437a.md?p=b-1) management [assessment program](/usc/42/10362.md?p=3) under [section 1437d(j)(2) of this title](/usc/42/1437d.md?p=j-2) (or any successor [assessment program](/usc/42/10362.md?p=3) for [public housing agencies](/usc/42/1437a.md?p=b-6-A)); and - (B) not more than 45 may be [jurisdictions](/usc/42/1437bbb–8.md?p=1) served by a [public housing agency](/usc/42/1437a.md?p=b-6-A) that, at the time of approval, is not designated as a troubled agency under the [public housing](/usc/42/1437a.md?p=b-1) management [assessment program](/usc/42/10362.md?p=3) under [section 1437d(j)(2) of this title](/usc/42/1437d.md?p=j-2) (or any successor [assessment program](/usc/42/10362.md?p=3) for [public housing agencies](/usc/42/1437a.md?p=b-6-A)). - (4) **Exception—** If the [City](/usc/42/12902.md?p=11) of Indianapolis, Indiana submits an application for participation in the [program](/usc/42/274l–1.md?p=4) under this subchapter and, upon review of the application under [section 1437bbb–5(b) of this title](/usc/42/1437bbb–5.md?p=b), the [Secretary](/usc/42/1437a.md?p=b-8) determines that such application is approvable under this subchapter, the [Secretary](/usc/42/1437a.md?p=b-8) shall approve such application, notwithstanding the second sentence of [section 1437bbb–5(b)(2) of this title](/usc/42/1437bbb–5.md?p=b-2). Such [City](/usc/42/12902.md?p=11) shall count for purposes of the numerical limitations on [jurisdictions](/usc/42/1437bbb–8.md?p=1) under paragraphs (1) and (3) of this subsection, but the provisions of paragraph (2) of this subsection (relating to exclusion of high-performing agencies) shall not apply to such [City](/usc/42/12902.md?p=11). ## Source credit (Sept. 1, 1937, ch. 896, title IV, § 402, as added Pub. L. 105–276, title V, § 561, Oct. 21, 1998, 112 Stat. 2617.)