§12772 Project-specific assistance to community housing development organizations

Summary

Lets participating jurisdictions use reserved HOME funds to give technical help and short loans to community housing development organizations for early site work and related eligible activities. No more than 10 percent of the reserved money can be used for other listed activities. Loans for site preparation must be limited to what the jurisdiction thinks are normal project preparation costs. They can pay for things like feasibility studies, consulting, initial finance applications, legal, design and engineering fees, putting together a development team, site control, and clearing title. Loans must be repaid into the jurisdiction’s HOME Investment Trust Fund from construction loan proceeds or other project income. The jurisdiction can forgive all or part of a loan if problems outside the borrower’s control stop the project. Preconstruction loans are allowed only if the organization already has site control, a preliminary financing commitment, and a capable development team.