---
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"
date: "2026-07-12"
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/42/242q–4.md?p=2) shall carry out a demonstration program 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/42/242q–4.md?p=2) for participation in the program may receive and combine and enter into performance-based contracts for the use of amounts of covered [housing assistance](/usc/42/13641.md?p=3), 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 in a manner that facilitates the transition of such families to work;
  - (2) to reduce homelessness through providing permanent housing solutions;
  - (3) to increase homeownership among low-income families; or
  - (4) for other housing purposes for low-income families 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 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/42/242q–4.md?p=2) may approve for participation in the program 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. A [jurisdiction](/usc/42/1437bbb–8.md?p=1) that was approved for participation in the demonstration program under this subchapter in a fiscal year and that is continuing such participation in any subsequent fiscal year shall count as a single [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/42/242q–4.md?p=2) may approve for participation in the demonstration program under this subchapter only [jurisdictions](/usc/42/1437bbb–8.md?p=1) served by public housing [agencies](/usc/42/8262.md?p=1) that—
    - (A) are not designated as high-performing [agencies](/usc/42/8262.md?p=1), pursuant to their most recent scores under the public housing management assessment program under [section 1437d(j)(2) of this title](/usc/42/1437d.md?p=j-2) (or any successor assessment program for public housing [agencies](/usc/42/8262.md?p=1)), as of the time of approval; and
    - (B) have a most recent score under the public housing management assessment program under [section 1437d(j)(2) of this title](/usc/42/1437d.md?p=j-2) (or any successor assessment program for public housing [agencies](/usc/42/8262.md?p=1)), as of the time of approval, that is among the lowest 40 percent of the scores of all [agencies](/usc/42/8262.md?p=1).
  - (3) **Limitation on troubled and non-troubled PHAs—** Of the [jurisdictions](/usc/42/1437bbb–8.md?p=1) approved by the [Secretary](/usc/42/242q–4.md?p=2) for participation in the demonstration program 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/42/8262.md?p=1) that, at the time of approval, is designated as a troubled [agency](/usc/42/8262.md?p=1) under the public housing management assessment program under [section 1437d(j)(2) of this title](/usc/42/1437d.md?p=j-2) (or any successor assessment program for public housing [agencies](/usc/42/8262.md?p=1)); and
    - (B) not more than 45 may be [jurisdictions](/usc/42/1437bbb–8.md?p=1) served by a public housing [agency](/usc/42/8262.md?p=1) that, at the time of approval, is not designated as a troubled [agency](/usc/42/8262.md?p=1) under the public housing management assessment program under [section 1437d(j)(2) of this title](/usc/42/1437d.md?p=j-2) (or any successor assessment program for public housing [agencies](/usc/42/8262.md?p=1)).
  - (4) **Exception—** If the City of Indianapolis, Indiana submits an application for participation in the program 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/42/242q–4.md?p=2) determines that such application is approvable under this subchapter, the [Secretary](/usc/42/242q–4.md?p=2) 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 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](/usc/42/8262.md?p=1)) shall not apply to such City.

## 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.)