42 U.S.C. § 1437aaa
Program authority (THE PUBLIC HEALTH AND WELFARE (42 U.S.C.))
Operative Text
The Secretary is authorized to make— planning grants to help applicants to develop homeownership programs in accordance with this subchapter; and implementation grants to carry out homeownership programs in accordance with this subchapter. In connection with a grant under this subchapter, the Secretary may reserve authority to provide assistance under to the extent necessary to provide replacement housing and rental assistance for a nonpurchasing tenant who resides in the project on the date the Secretary approves the application for an implementation grant, for use by the tenant in another project.
Under 42 U.S.C. § 1437aaa, the federal Secretary of Housing and Urban Development holds the authority to issue two categories of grants: planning grants, which help eligible applicants design homeownership programs, and implementation grants, which fund the actual carrying out of those programs. Additionally, when approving an implementation grant, the Secretary may reserve the ability to provide replacement housing or rental assistance for tenants who live in the affected project but do not purchase a unit, allowing those tenants to use that assistance in a different project. This provision establishes the foundational grant-making power that makes federally supported public housing homeownership conversions possible.
Plain English — not legal advice.
Property owners and housing authorities pursuing a conversion under 42 U.S.C. § 1437aaa generally begin by applying for a planning grant to develop a compliant homeownership program before seeking an implementation grant to execute it. Operators administering such programs typically account for the Secretary's reserved authority to provide relocation or rental assistance to nonpurchasing tenants who were residing in the project at the time the implementation grant application was approved. Maintaining accurate occupancy records as of that approval date is a common practice among compliant program administrators, since those records help identify which residents may be eligible for assistance in another project.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under 42 U.S.C. § 1437aaa, tenants who live in a project on the date the Secretary approves an implementation grant application and who do not purchase a unit may be entitled to replacement housing or rental assistance usable in another project. This protection is tied to the Secretary's reserved authority at the time of grant approval, making the timing of residency a potentially significant factor for affected tenants. Tenants who believe they qualify under this provision may wish to consult a tenant-rights organization or a HUD-approved housing counselor to better understand what assistance paths may be available to them.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 3, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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