PUBLIC LAW 102-550—OCT. 28, 1992 106 STAT. 3749

(6) UNIT OF GENERAL LOCAL GOVERNMENT.—The term "unit
of general local government" means any borough, city, county,
parish, town, township, village, or other general purpose politi-
cal subdivision of a State.

(c) ASSISTANCE TO NONPROFIT ORGANIZATIONS.—

(1) IN GENERAL.—The Secretary may provide assistance
to nonprofit organizations to carry out enterprise zone
homeownership opportunity programs to promote homeowner-
ship in federally approved and equivalent State-approved enter-
prise zones in accordance with the provisions of this section.
Such assistance shall be made in the form of grants.

(2) APPLICATIONS.—Applications for assistance under this
section shall be made in such form, and in accordance with
such procedures, as the Secretary may prescribe.

(d) ELIGIBLE USES OF ASSISTANCE.—

(1) IN GENERAL.—Any nonprofit organization receiving
assistance under this section shall use such assistance to pro-
vide loans to families purchasing homes constructed or rehabili-
tated in accordance with an enterprise zone homeownership
opportunity program approved under this section.

(2) SPECIFIC REQUIREMENTS.—Each loan made to a family
under this subsection shall—

(A) be secured by a second mortgage held by the Sec-
retary on the property involved;

(B) be in an amount not exceeding $15,000;

(C) bear no interest; and

(D) be repayable to the Secretary upon the sales, lease,
or other transfer of such property.

(e) PROGRAM REQUIREMENTS.—

(1) IN GENERAL.—Assistance provided under this section
may be used only in connection with an enterprise zone
homeownership opportunity program of construction or
rehabilitation of homes.

(2) FAMILY NEED.—Each family purchasing a home under
this section shall—

(A) have a family income on the date of such purchase
that is not more than the median income for a family
of 4 persons (adjusted for family size) in the metropolitan
statistical area in which a federally approved or equivalent
State-approved enterprise zone is located; and

(B) not have owned a home during the 3-year period
preceding such purchase.

(3) DOWNPAYMENT.—Each family purchasing a home under
this section shall make a downpayment of not less than 5
percent of the sale price of such home.

(4) LEASING PROHIBITION.—No family purchasing a home
under this section may lease such home.

(£) TERMS AND CONDITIONS OF ASSISTANCE.—

(1) LOCAL CONSULTATION.—No proposed enterprise zone
homeownership opportunity program may be approved by the
Secretary under this section unless the applicant involved dem-
onstrates to the satisfaction of the Secretary that—

(A) it has consulted with and received the support
of residents of the neighborhood in which such program
is to be located; and

(B) it has the approval of each unit of general local
government in which such program is to be located.