§1490d — Title 42 The Public Health and Welfare | U.S. Code

Summary

The Secretary can lend money to public or private nonprofit groups and to Indian tribes to buy and prepare land that will be split into building lots and sold to eligible families, nonprofits, public agencies, or cooperatives getting housing help under this or other housing laws for low- and moderate-income people. The Secretary sets the interest rate using the Treasury’s yearly average market yield for similar 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. The Secretary can also give grants to nonprofits to start revolving loan funds. Repayments must go back into the fund, and fund money and interest may only pay for land purchase, land preparation, reimbursable legal and technical costs, and technical or administrative costs up to 10 percent of the fund. Before giving help, the Secretary must consider if the area is suitable for the homes that can be built and whether the aid will provide decent, safe, sanitary housing, be used quickly and efficiently, and meet needs not already met by other federal, state, or local programs.

Title 42, §1490d

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

(a)(1)The Secretary may make loans, on such terms and conditions and in such amounts he deems necessary, to public or private nonprofit organizations and to Indian tribes for the acquisition and development of land as building sites to be subdivided and sold to families, nonprofit organizations, public agencies, and cooperatives eligible for assistance under any section of this subchapter or under any other law which provides financial assistance for housing low- and moderate-income families. Such a loan shall bear interest at a rate prescribed by the Secretary taking into consideration a rate determined annually by the Secretary of the Treasury as the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturities of such loans, adjusted to the nearest one-eighth of 1 per centum, and shall be repaid within a period not to exceed five years from the making of the loan or within such additional period as may be authorized by the Secretary in any case as being necessary to carry out the purposes of this section.

(2)The Secretary may make grants to nonprofit housing agencies to establish revolving loan funds for the acquisition and preparation of building sites for low-income housing. Any proceeds and repayments from such loans shall be returned to the revolving loan fund to be used for purposes related to this section. Loan funds and interest payments shall be used solely for the acquisition of land; the preparation of land for building sites; the payment of reimbursable legal and technical costs; and technical assistance and administrative costs, not to exceed 10 percent of the fund.

(b)In determining whether to extend financial assistance under this section, the Secretary shall take into consideration, among other factors, (1) the suitability of the area to the types of dwellings which can feasibly be provided, and (2) the extent to which the assistance will (i) facilitate providing needed decent, safe, and sanitary housing, (ii) be utilized efficiently and expeditiously, and (iii) fulfill a need in the area which is not otherwise being met through other programs, including those being carried out by other Federal, State, or local agencies.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2024—Subsec. (a)(1). Pub. L. 118–42 substituted “five years” for “two years”. 1992—Subsec. (a). Pub. L. 102–550 designated existing provisions as par. (1), inserted par. heading, and added par. (2). 1980—Subsec. (a). Pub. L. 96–399 inserted reference to Indian tribes. 1974—Subsec. (a). Pub. L. 93–383 provided for applicability to public agencies and substituted “any section of this subchapter or under any other law which provides financial assistance for housing low- and moderate-income families” for “section 1715z or 1715z–1 of title 12 or section 1490a of this title”.

§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

Title 42, §1490d

Notes & Related Subsidiaries

Editorial Notes

Amendments

Citations & Metadata