§12772 Project-specific Assistance to Community Housing Development Organizations

Summary

Reserved program funds can pay for already-allowed housing activities and up to 10 percent can be used for other listed purposes. The money can give short-term technical-assistance or site-control loans to community housing development organizations in the early project stage. Those loans must match what the local program considers normal project-preparation costs and can cover things like initial feasibility studies, consultant and legal fees, architectural and engineering work, preliminary finance work, and clearing title and site control. The funds can also make preconstruction loans to those same organizations to pay usual preconstruction costs, such as getting firm construction loan commitments, final plans, zoning approvals, and related studies and fees. Preconstruction loans are only for projects where the organization already has site control, a preliminary financing commitment, and a capable development team. Both loan types must be paid back from construction loan proceeds or other project income, although the local participating jurisdiction may waive repayment in whole or in part if development is blocked by problems reasonably beyond the borrower’s control.