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Title 42, The Public Health and WelfareRelease 119-110

§12804 Rehabilitation Loans

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

Last updated Sep 23, 2026|Official source

Summary

Creates a model loan program to pay for repairs of low‑ and moderate‑income single‑ and multi‑family housing. The Secretary sets loan rules to keep loans safe by checking how much repair is needed, what security backs the loan, and whether the borrower can repay. The Secretary may set interest rates and offer lower rates to borrowers earning below 80 percent of the area median. Properties may need to be in areas with many homes needing repair, be owner‑occupied, need rehab or code enforcement soon, and fit local plans. The program must follow additional protections and limits for similar programs.

Full Legal Text

Title 42, §12804

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

(a)In general
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)Condition of loans
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)Additional restrictions
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 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.
Additional guidelines for the model program shall generally comport with the additional protections and restrictions specified under section 1452b of this title.

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 (c), was repealed by Pub.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

Sep 23, 2026

Release point: 119-110