§12804 — Title 42 The Public Health and Welfare | U.S. Code

Summary

Secretary must offer a model program of direct loans to repair low- and moderate-income single- or multifamily homes. The Secretary must set terms to limit risk by checking repair need, loan security, and borrower ability to repay, and may set interest, including special rates for incomes under 80 percent of area median. Properties may be owner-occupied and in neighborhoods with many homes needing rehab that fits local plans.

Title 42, §12804

The Public Health and Welfare — Source: USLM XML via OLRC

(a)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)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)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 11 So in original. The words “the property” probably should not appear. is residential and owner-occupied; and

(3)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.

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 (c), was repealed by Pub.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), Nov. 28, 1990, 104 Stat. 4128, which is classified to section 12839(b)(1) of this title.

§12804 Rehabilitation loans

Summary

Title 42, §12804

Notes & Related Subsidiaries

Editorial Notes

References in Text

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