§2051 General authority

Summary

The Secretary can guarantee all or part of loans that meet the program’s rules. No more than 15 loans can be guaranteed in total, and no more than 5 of those can be guaranteed during the 3-year period after the law was passed. Each guarantee must be at least the amount needed so the loan can be sold in a commercial market, and the total guaranteed cannot exceed $100,000,000. The Secretary must approve a loan before it closes. The Secretary must hire a qualified nonprofit or similar group with experience reviewing loans for transitional housing to get advice on how the program and loan terms should work. A “nonprofit” here means an organization described in certain parts of the tax code and exempt from tax. The Secretary may start the program before formal rules are written and may guarantee loans even if another law would normally require funds to be approved first. A guaranteed multifamily transitional housing project may accept unpaid volunteer work from any eligible entity under section 2011(d).