PRIA, Government Policy, Made Personal

Summary

The Secretary can make or insure loans to help people and families with low or moderate incomes buy single-family condo units in rural areas. These loans must follow similar rules as other rural housing loans when possible. Each loan must cover one condo unit and must include rules the Secretary thinks are needed to care for shared areas and to protect buyers. The Secretary can also make or insure blanket loans for whole multi-unit projects if the borrower promises the finished project will become a family-ownership condo project, each unit will be eligible for the individual loans, and units will be sold only as condos to eligible buyers. The blanket loan cannot be larger than the total of the individual loans that could be made for the units. Condominium: a multi-unit housing project where each unit is owned separately and owners share the common areas; the ownership plan must be acceptable to the Secretary.

Title 42, §1490f

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

(a)Individual loans and insurance of loans to low or moderate income persons or families for purchase of units; terms and conditions

The Secretary is authorized, upon such terms and conditions (substantially identical insofar as may be feasible with those specified in section 1472 of this title) as he may prescribe, to make loans to persons and families of low or moderate income, and to insure and make commitments to insure loans made to persons and families of low or moderate income, to assist them in purchasing dwelling units in condominiums located in rural areas.

(b)Scope of individual loans and insurance of loans; condominium requirements

Any loan made or insured under subsection (a) shall cover a one-family dwelling unit in a condominium, and shall be subject to such provisions as the Secretary determines to be necessary for the maintenance of the common areas and facilities of the condominium project and to such additional requirements as the Secretary deems appropriate for the protection of the consumer.

(c)Blanket loans and insurance of loans; terms and conditions; certification by borrower of future ownership of multifamily project; maximum amount of principal obligation

In addition to individual loans made or insured under subsection (a) the Secretary is authorized, upon such terms and conditions (substantially identical insofar as may be feasible with those specified in section 1485 of this title) as he may prescribe, to make or insure blanket loans to a borrower who shall certify to the Secretary, as a condition of obtaining such loan or insurance, that upon completion of the multifamily project the ownership of the project will be committed to a plan of family unit ownership under which (1) each family unit will be eligible for a loan or insurance under subsection (a), and (2) the individual dwelling units in the project will be sold only on a condominium basis and only to purchasers eligible for a loan or insurance under subsection (a). The principal obligation of any blanket loan made or insured under this subsection shall in no case exceed the sum of the individual amounts of the loans which could be made or insured with respect to the individual dwelling units in the project under subsection (a).

(d)“Condominium” defined

As used in this section, the term “condominium” means a multi-unit housing project which is subject to a plan of family unit ownership acceptable to the Secretary under which each dwelling unit is individually owned and each such owner holds an undivided interest in the common areas and facilities which serve the project.

Editorial Notes

Amendments

1988—Subsecs. (a), (c). Pub. L. 100–242 struck out “and” after “is authorized,”. 1983—Subsecs. (a), (c). Pub. L. 98–181 struck out “in his discretion” after “Secretary is authorized,”.

§1490f Loans and Insurance of Loans for Condominium Housing in Rural Areas

Summary

Title 42, §1490f

Notes & Related Subsidiaries

Editorial Notes

Amendments

Citations & Metadata