PRIA Logo™
Title 42 — The Public Health and WelfareRelease 119-73not60

§12804 Rehabilitation Loans

Title 42 › Chapter 130— NATIONAL AFFORDABLE HOUSING › Subchapter II— INVESTMENT IN AFFORDABLE HOUSING › Part D— Specified Model Programs › § 12804

Last updated Apr 5, 2026|Official source

Summary

The Secretary must offer a model loan program that gives direct loans to pay for rehabbing low- and moderate-income single-family and multi-family homes. The Secretary must set loan rules so loans are sensible risks by looking at how much rehab is needed, the loan security, and whether the borrower can repay. The Secretary can set interest rates and must include special rates for borrowers with incomes below 80 percent of the area median income. Program rules can require that the property be in an area with many homes needing repair, be a residential owner‑occupied property, and need rehabilitation or code enforcement soon in a way that fits a local rehab plan.

Full Legal Text

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.

Legislative History

Notes & Related Subsidiaries

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 (c), was repealed by Pub.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.

Reference

Citations & Metadata

Citation

42 U.S.C. § 12804

Title 42 — The Public Health and Welfare

Last Updated

Apr 5, 2026

Release point: 119-73not60