§4635 Planning and other preliminary expenses for additional housing

Summary

Federal agencies running a project can make or approve loans to help pay planning costs for building or fixing housing for people displaced by that project. Eligible borrowers are nonprofits, limited‑dividend groups, cooperatives, or public bodies. Loans can pay up to 80% of reasonable planning and financing costs before permanent financing is available. Examples of covered costs are market surveys, site engineering, early architect fees, buying a site, application and mortgage commitment fees, and construction loan fees or discounts. Loans to for‑profit organizations must carry a market interest rate set by the agency head. All other loans are interest‑free. The agency head must require repayment when the project is finished or sooner. For nonprofit or public borrowers, the agency may cancel part or all of the loan if a permanent loan cannot be obtained; it may not do that for for‑profit borrowers. When repaid, the federal share goes back to the account that made the loan, or to the Treasury as miscellaneous receipts if that account no longer exists.