42 U.S.C. § 12804

Current through P.L. 118-106 (published on www.congress.gov on 10/04/2024)

Section 12804 - Rehabilitation loans

(a) In general

The Secretary shall make available a model program to provide direct loans to finance the rehabilitation of low and moderate income single family and multifamily residential properties.

(b) Condition of loans

The Secretary shall establish terms and conditions to ensure that such loans are acceptable risks, taking into consideration the need for rehabilitation, the security for the loan and the ability of the borrower to repay the loan. The Secretary may establish the interest rate for loans under the model program, which shall include special interest rates for loans to borrowers with incomes below 80 percent of the area median income.

(c) Additional restrictions

Guidelines for the model program may require that the property-

(1) be located in an area that contains a substantial number of dwellings in need of rehabilitation;

(2) the property¹ is residential and owner-occupied; and

(3) the property¹ is in need of rehabilitation or concentrated code enforcement within a reasonable time, and the rehabilitation of such property is consistent with a local plan for rehabilitation or code enforcement.

Additional guidelines for the model program shall generally comport with the additional protections and restrictions specified under section 1452b² of this title.

¹So in original. The words "the property" probably should not appear.

²See References in Text note below.

42 U.S.C. § 12804

Pub. L. 101-625, title II, §254, Nov. 28, 1990, 104 Stat. 4121.

EDITORIAL NOTES

REFERENCES IN TEXTSection 1452b of this title, referred to in subsec. (c), was repealed by Pub. L. 101-625, title II, §289(b)(1), Nov. 28, 1990, 104 Stat. 4128, which is classified to section 12839(b)(1) of this title.

Secretary: The term "Secretary" means the Secretary of Housing and Urban Development.1See References in Text note below.
owner: The term "owner" means, with respect to federally assisted housing, the entity or private person, including a cooperative or public housing agency, that has the legal right to lease or sublease dwelling units in such housing.