12 2 STA T . 2 85 1 PUBLIC LA W 11 0– 28 9—J UL Y3 0 , 2008 (1)INGE NE RAL.—AnySta t eoru n i to fg enera l lo c al go v ern -m ent t h at receive s amounts p ursuant to this section shall , not later than 1 8 months after the receipt of such amounts, use such amounts to purchase an d redevelop a b andoned and foreclosed homes and residential properties. ( 2 ) P R IO RI TY .—Any State or unit of general local govern- ment that receives amounts pursuant to this section shall in distributing such amounts give priority emphasis and consider- ation to those metropolitan areas, metropolitan cities, urban areas, rural areas, lo w - and moderate-income areas, and other areas with the greatest need, including those— (A) with the greatest percentage of home foreclosures
( B ) with the highest percentage of homes financed by a subprime mortgage related loan; and ( C ) identified by the State or unit of general local government as li k ely to face a significant rise in the rate of home foreclosures. ( 3 ) E LIGI B LE US ES.—Amounts made available under this section may be used to— (A) establish financing mechanisms for purchase and redevelopment of foreclosed upon homes and residential properties, including such mechanisms as soft-seconds, loan loss reserves, and shared-e q uity loans for low- and mod- erate-income homebuyers; (B) purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed upon, in order to sell, rent, or redevelop such homes and prop- erties; (C) establish land banks for homes that have been foreclosed upon; ( D ) demolish blighted structures; and (E) redevelop demolished or vacant properties. (d) L I M ITATIONS.— (1) O N P UR CH ASES.—Any purchase of a foreclosed upon home or residential property under this section shall be at a discount from the current market appraised value of the home or property, taking into account its current condition, and such discount shall ensure that purchasers are paying below-market value for the home or property. (2) R EHABILITATION.—Any rehabilitation of a foreclosed- upon home or residential property under this section shall betothee x tent necessary to comply with applicable laws, codes, and other requirements relating to housing safety, quality, and habitability, in order to sell, rent, or redevelop such homes and properties. Rehabilitation may include improvements to increase the energy efficiency or conservation of such homes and properties or provide a renewable energy source or sources for such homes and properties. (3) SALE O F HOMES.—If an abandoned or foreclosed upon home or residential property is purchased, redeveloped, or otherwise sold to an individual as a primary residence, then such sale shall be in an amount equal to or less than the cost to acquire and redevelop or rehabilitate such home or property up to a decent, safe, and habitable condition. ( 4 ) REIN V ESTMENT OF PROFITS.— (A) PROFITS FROM SALES, RENTALS, AN D REDEVELOP- MENT.— Discount s .Urba nan d rura l ar e as. Deadline.
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