§14503 — Title 40 Public Buildings, Property, and Works | U.S. Code

Summary

Creates an Appalachian Housing Fund and lets the HUD Secretary use money put into that Fund as a revolving pool to make loans and grants to help build or fix housing for low- and moderate-income people in parts of the Appalachian region the Appalachian Regional Commission sets. Money the Secretary gets for this purpose goes into the Fund. The Fund can be invested in federal government–guaranteed bonds, and Fund money can pay administrative costs. HUD may give grants and loans to nonprofits, limited-dividend groups, cooperatives, and public bodies to plan and get federally insured mortgage financing or other help for housing projects under programs like section 221 (12 U.S.C. 1715l), section 8 (42 U.S.C. 1437f), section 515 (42 U.S.C. 1485), or similar laws. Loans for planning and financing costs can cover up to 50% of those costs, or 80% in counties with a distressed designation under section 14526, or 70% in counties with an at-risk designation under section 14526. Loans are interest-free except for for-profit organizations, which pay the market rate. Loans must be repaid by project completion, and HUD may cancel part of a loan to a nonprofit if a permanent loan cannot be obtained. Grants for unrecoverable planning costs follow the same percentage limits and cannot go to for-profit groups; HUD may also fund essential site or offsite work, but construction or rehab grants cannot exceed 10% of the project cost or rehab value. HUD or the Commission can provide technical help, and assisted projects must follow rules cited in section 14701 as applicable.

Title 40, §14503

Public Buildings, Property, and Works — Source: USLM XML via OLRC

(a)(1)There is an Appalachian Housing Fund.

(2)Amounts allocated to the Secretary of Housing and Urban Development for the purposes of this section shall be deposited in the Fund. The Secretary shall use the Fund as a revolving fund to carry out those purposes. Amounts in the Fund not needed for current operation may be invested in bonds or other obligations the Federal Government guarantees as to principal and interest. General expenses of administration of this section may be charged to the Fund.

(b)To encourage and facilitate the construction or rehabilitation of housing to meet the needs of low- and moderate-income families and individuals, the Secretary may make grants and loans from the Fund, under terms and conditions the Secretary may prescribe. The grants and loans may be made to nonprofit, limited dividend, or cooperative organizations and public bodies and are for planning and obtaining federally insured mortgage financing or other financial assistance for housing construction or rehabilitation projects for low- and moderate-income families and individuals, in any area of the Appalachian region the Appalachian Regional Commission establishes, under—

(1)section 221 of the National Housing Act (12 U.S.C. 1715l);

(2)section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f);

(3)section 515 of the Housing Act of 1949 (42 U.S.C. 1485); or

(4)any other law of similar purpose administered by the Secretary or any other department, agency, or instrumentality of the Federal Government or a state government.

(c)The Secretary or the Commission may provide amounts to the States for making grants and loans to nonprofit, limited dividend, or cooperative organizations and public bodies for the purposes for which the Secretary may provide amounts under this section.

(d)(1)A loan under subsection (b) for the cost of planning and obtaining financing (including the cost of preliminary surveys and analyses of market needs, preliminary site engineering and architectural fees, site options, application and mortgage commitment fees, legal fees, and construction loan fees and discounts) of a project described in that subsection may be made for up to—

(A)50 percent of that cost;

(B)in the case of a project to be carried out in a county for which a distressed county designation is in effect under section 14526, 80 percent of that cost; or

(C)in the case of a project to be carried out for a county for which an at-risk county designation is in effect under section 14526, 70 percent of that cost.

(2)A loan shall be made without interest, except that a loan made to an organization established for profit shall bear interest at the prevailing market rate authorized for an insured or guaranteed loan for that type of project.

(3)The Secretary shall require payment of a loan made under this section, under terms and conditions the Secretary may require, no later than on completion of the project. Except for a loan to an organization established for profit, the Secretary may cancel any part of a loan made under this section on determining that a permanent loan to finance the project cannot be obtained in an amount adequate for repayment of a loan made under this section.

(e)(1)A grant under this section for expenses incidental to planning and obtaining financing for a project under this section that the Secretary considers to be unrecoverable from the proceeds of a permanent loan made to finance the project shall—

(A)not be made to an organization established for profit; and

(B)except as provided in paragraph (2), not exceed—

(i)50 percent of those expenses;

(ii)in the case of a project to be carried out in a county for which a distressed county designation is in effect under section 14526, 80 percent of those expenses; or

(iii)in the case of a project to be carried out in a county for which an at-risk county designation is in effect under section 14526, 70 percent of those expenses.

(2)The Secretary may make grants and commitments for grants, and may advance amounts under terms and conditions the Secretary may require, to nonprofit, limited dividend, or cooperative organizations and public bodies for reasonable site development costs and necessary offsite improvements, such as sewer and water line extensions, when the grant, commitment, or advance is essential to the economic feasibility of a housing construction or rehabilitation project for low- and moderate-income families and individuals which otherwise meets the requirements for assistance under this section. A grant under this paragraph for—

(A)the construction of housing shall not be more than 10 percent of the cost of the project; and

(B)the rehabilitation of housing shall not be more than 10 percent of the reasonable value of the rehabilitation housing, as determined by the Secretary.

(f)The Secretary or the Commission may provide, or contract with public or private organizations to provide, information, advice, and technical assistance with respect to the construction, rehabilitation, and operation by nonprofit organizations of housing for low- or moderate- income families in areas of the region the Commission establishes.

(g)Programs and projects assisted under this section are subject to the provisions cited in section 14701 of this title to the extent provided in the laws authorizing assistance for low- and moderate-income housing.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 14503(a)40 App.:207(d).Pub. L. 89–4, title II, § 207, as added Pub. L. 90–103, title I, § 112, Oct. 11, 1967, 81 Stat. 261; Pub. L. 90–448, title II, § 201(f), Aug. 1, 1968, 82 Stat. 502; Pub. L. 91–123, title I, § 106, Nov. 25, 1969, 83 Stat. 215; Pub. L. 92–65, title II, § 208, Aug. 5, 1971, 85 Stat. 169; Pub. L. 94–188, title I, § 113, Dec. 31, 1975, 89 Stat. 1082; Pub. L. 105–393, title II, § 212, Nov. 13, 1998, 112 Stat. 3621; Pub. L. 107–149, § 13(e), Mar. 12, 2002, 116 Stat. 71. 14503(b)40 App.:207(a). 14503(c)40 App.:207(e) (words after “areas of the region”). 14503(d)40 App.:207(b). 14503(e)40 App.:207(c). 14503(f)40 App.:207(e) (words before “and may provide funds”). 14503(g)40 App.:207(f). Subsection (a)(1) is added for clarity and for consistency with other titles of the United States Code. In subsection (g), the words “notwithstanding such section” are omitted as unnecessary.

Editorial Notes

Amendments

2008—Subsec. (d)(1). Pub. L. 110–371, § 2(c)(1), added par. (1) and struck out heading and text of former par. (1). Text read as follows: “A loan under subsection (b) shall not be more than 50 percent (or 80 percent for a project to be carried out in a county for which a distressed county designation is in effect under section 14526 of this title) of the cost of planning and obtaining financing for a project, including preliminary surveys and analyses of market needs, preliminary site engineering and architectural fees, site options, application and mortgage commitment fees, legal fees, and

Construction

loan fees and discounts.” Subsec. (e)(1). Pub. L. 110–371, § 2(c)(2), added par. (1) and struck out heading and text of former par. (1). Text read as follows: “A grant under this section shall not be made to an organization established for profit and, except as provided in paragraph (2), shall not exceed 50 percent (or 80 percent for a project to be carried out in a county for which a distressed county designation is in effect under section 14526 of this title) of expenses, incident to planning and obtaining financing for a project, which the Secretary considers not to be recoverable from the proceeds of a permanent loan made to finance the project.”

§14503 Assistance for Proposed Low- and Middle-income Housing Projects