SEC-218 -- HOME INVESTMENT TRUST FUNDS.


 (a) Establishment.-The Secretary shall establish for each participating
jurisdiction a HOME Investment Trust Fund, which shall be an account (or
accounts as provided in section 219(c)) for use solely to invest in
affordable housing within the participating jurisdiction's boundaries
in accordance with the provisions of this subtitle.

 (b) Line of Credit.-The Secretary shall establish a line of credit in
the HOME Investment Trust Fund of each participating jurisdiction, which
line of credit shall include-

 (1) funds allocated or reallocated to the participating jurisdiction
under section 217, and

 (2) any payment or repayment made pursuant to section 219.

 (c) Reductions.-A participating jurisdiction's line of credit shall be
reduced by-

 (1) funds drawn from the HOME Investment Trust Fund by the
participating jurisdiction,

 (2) funds expiring under subsection (g), and

 (3) any penalties assessed by the Secretary under section 224.

 (d) Certification.-A participating jurisdiction may draw funds from its
HOME Investment Trust Fund, but not to exceed the remaining line of
credit, only after providing certification that the funds shall be used
pursuant to the participating jurisdiction's approved housing strategy
and in compliance with all requirements of this title. When such
certification is received, the Secretary shall immediately disburse such
funds in accordance with the form of the assistance determined by the
participating jurisdiction.

 (e) Investment Within 15 Days.-The participating jurisdiction shall,
not later than 15 days after funds are drawn from the jurisdiction's
HOME Investment Trust Fund, invest such funds, together with any
interest earned thereon, in the affordable housing for which the funds
were withdrawn.

 (f) No Interest or Fees.-The Secretary shall not charge any interest
or levy any other fee with regard to funds in a HOME Investment Trust
Fund.

 (g) Expiration of Right To Draw Funds.-Except as provided in section
217(b)(1)(A)(ii), if any funds becoming available to a participating
jurisdiction under this title are not placed under binding commitment
to affordable housing within 24 months after the last day of the month
in which such funds are deposited in the jurisdiction's HOME Investment
Trust Fund, the jurisdiction's right to draw such funds from the HOME
Investment Trust Fund shall expire. The Secretary shall reduce the line
of credit in the participating jurisdiction's HOME Investment Trust Fund
by the expiring amount and shall reallocate the funds by formula in
accordance with section 217(d).

 (h) Administrative Provision.-The Secretary shall keep each
participating jurisdiction informed of the status of its HOME Investment
Trust Fund, including the status of amounts under various stages of
commitment.