§291j–2 Allocation Among States

Summary

Each fiscal year, the Secretary must split the total loan principal available under this program among the States, using rules that look at each State’s share of the population, how much money it needs, its need to build new facilities, and its need to modernize existing facilities. The loans covered include guaranteed loans to nonprofit private agencies and direct loans to public agencies. If a State had money allotted for a fiscal year ending before July 1, 1973 that it did not spend by year-end, that money stays available to that State for the next two fiscal years only. With the State’s consent, any of that money still unused after the first of those two years can be reallocated to other States that need it; reallocated funds remain available until the end of the second of those two years and are added to the receiving State’s allotments. Money allotted or reallotted for a year cannot be counted as available for a later year while it is still in its availability period. Also, the allotments for the fiscal year ending June 30, 1971 and the next fiscal year may be used to guarantee loans to finish or modernize a nonprofit private hospital or similar facility if work started on or after January 1, 1968, and the State certifies and the Secretary finds the loan is necessary to complete or keep the facility operating. No more than two such projects are allowed per State.