Title 42 — The Public Health and Welfare
Part D · Chapter 130 — National Affordable Housing
§ 12804. Rehabilitation loans
Statutory text
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.
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.
Additional restrictions
Guidelines for the model program may require that the property—
be located in an area that contains a substantial number of dwellings in need of rehabilitation;
the property 1 is residential and owner-occupied; and
the property 1 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 1452b 2 of this title.
Footnotes
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
HOME Investment Partnerships Act
Pub. L. 101–625 title II § 254 · 104 Stat. 4079
Enacted · 42 U.S.C. § 12804
(Pub. L. 101–625, title II, § 254, Nov. 28, 1990, 104 Stat. 4121.)
Source evidence
Code source credit
(Pub. L. 101–625, title II, § 254, Nov. 28, 1990, 104 Stat. 4121.)Enacted provision · exact public law section
SEC. 254. 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 property is residential and owner-occupied; and (3) the property 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 312 of the Housing Act of 1964.
1 of 1 references resolved to an enrolled provision
Editorial Notes
References in Text
Section 1452b of this title, referred to in subsec. (c), was repealed by Pub. L. 101–625, title II, § 289(b)(1), , 104 Stat. 4128, which is classified to section 12839(b)(1) of this title.