§1490d Loans to Nonprofit Organizations to Provide Building Sites for Eligible Families, Nonprofit Organizations, Public Agencies, and Cooperatives; Interest Rates; Factors Determinative in Making Loan

Summary

The Secretary may lend money to nonprofit groups and Indian tribes so they can buy and prepare land, divide it into building lots, and sell those lots to families, nonprofits, public agencies, or cooperatives that qualify for housing help. The Secretary sets the loan interest rate each year using the Treasury’s current average market yield for similar‑term U.S. securities, rounded to the nearest one-eighth of 1 percent. Loans must be repaid within five years unless the Secretary allows more time when needed. The Secretary may also give grants to nonprofits to start revolving loan funds for buying and readying building sites for low‑income housing. Repayments go back into the fund. Money and interest from the fund may only pay for land, land preparation, reimbursable legal and technical costs, and technical or administrative help (up to 10 percent of the fund). Before giving help, the Secretary will consider whether the area fits the homes planned and whether the aid will provide safe, decent housing quickly, efficiently, and where other programs do not already meet the need.