SEC-231 -- SET-ASIDE FOR COMMUNITY HOUSING DEVELOPMENT ORGANIZATIONS.


 (a) In General.-For a period of 18 months after funds under subtitle
A are made available to a jurisdiction, the jurisdiction shall reserve
not less than 15 percent of such funds for investment only in housing
to be developed, sponsored, or owned by community housing development
organizations. Each participating jurisdiction shall make reasonable
efforts to identify community housing development organizations that are
capable or can reasonably be expected to become capable of carrying out
elements of the jurisdiction's housing strategy and to encourage such
community housing development organizations to do so. A participating
jurisdiction is authorized to enter into contracts with community
housing development organizations to carry out this section.

 (b) Recapture and Reuse.-If any funds reserved under subsection (a)
remain uninvested for a period of 18 months, then the Secretary shall
deduct such funds from the line of credit in the participating
jurisdiction's HOME Investment Trust Fund and make such funds available
by direct reallocation (1) to other participating jurisdictions for
affordable housing developed, sponsored or owned by community housing
development organizations, or (2) to nonprofit intermediary
organizations to carry out activities that develop the capacity of
community housing development organizations consistent with section 233,
with preference to community housing development organizations serving
the jurisdiction from which the funds were recaptured.

 (c) Direct Reallocation Criteria.-Insofar as practicable, direct
reallocations under this section shall be made according to the
selection criteria established under section 217(c).