Title 42, The Public Health and WelfareRelease 119-110

§12772 Project-specific Assistance to Community Housing Development Organizations

Title 42 › CHAPTER 130 — NATIONAL AFFORDABLE HOUSING › SUBCHAPTER II — INVESTMENT IN AFFORDABLE HOUSING › Part B — Community Housing Partnership › § 12772

Last updated Sep 22, 2026|Official source

Summary

Lets money set aside for community housing groups pay for eligible project work and, up to 10% of that money, for extra project help. Local governments may make two kinds of short-term loans to community housing development organizations: technical assistance/site-control loans and seed money loans. Technical assistance loans can pay for things like initial feasibility studies, consulting, legal, architectural and engineering fees, bringing a development team together, site control, and clearing title. Seed money loans can pay for preconstruction costs like getting firm construction loan commitments, plans and specs, zoning approvals, and similar fees. Loans must be for costs the local government considers customary and reasonable. Borrowers repay from construction loan proceeds or project income, but the local government may forgive part or all if delays happen for reasons beyond the borrower’s control. Seed loans only go to sponsors who have site control, a preliminary financial commitment, and a capable development team.

Full Legal Text

Title 42, §12772

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

(a)In general

Amounts reserved under section 12771 of this title may be used for activities eligible under section 12742 of this title and, in amounts not to exceed 10 percent of the amounts so reserved, for other activities specified under this section.

(b)Project-specific technical assistance and site control loans

(1)In general

Amounts reserved under section 12771 of this title may be used to provide technical assistance and site control loans to community housing development organizations in the early stages of site development for an eligible project. Such loans shall not exceed amounts that the jurisdiction determines to be customary and reasonable project preparation costs allowable under paragraph (2).

(2)Allowable expenses

A loan under this subsection may be provided to cover project expenses necessary to determine project feasibility (including costs of an initial feasibility study), consulting fees, costs of preliminary financial applications, legal fees, architectural fees, engineering fees, engagement of a development team, site control and title clearance.

(3)Repayment

A community housing development organization that receives a loan under this subsection shall repay the loan to the participating jurisdiction’s HOME Investment Trust Fund from construction loan proceeds or other project income. The participating jurisdiction may waive repayment of the loan, in part or in whole, if there are impediments to project development that the participating jurisdiction determines are reasonably beyond the control of the borrower.

(c)Project-specific seed money loans

(1)In general

Amounts reserved under section 12771 of this title may be used to provide loans to community housing development organizations to cover preconstruction project costs that the jurisdiction determines to be customary and reasonable, including, but not limited to the costs of obtaining firm construction loan commitments, architectural plans and specifications, zoning approvals, engineering studies and legal fees.

(2)Eligible sponsors

A loan under this subsection may be provided only to a community housing development organization that has, with respect to the project concerned, site control, a preliminary financial commitment, and a capable development team.

(3)Repayment

A community housing development organization that receives a loan under this subsection shall repay the loan to the jurisdiction’s HOME Investment Trust Fund from construction loan proceeds or other project income. The participating jurisdiction may waive repayment of the loan, in whole or in part, if there are impediments to project development that the participating jurisdiction determines are reasonably beyond the control of the borrower.

Reference

Citations & Metadata

Citation

42 U.S.C. § 12772

Title 42, The Public Health and Welfare

Last Updated

Sep 22, 2026

Release point: 119-110