§303901 Loan Insurance Program for Preservation of Property Included on National Register

Summary

Creates a program that lets the Secretary insure loans from private lenders to help preserve properties on the National Register. Lenders must be approved as financially sound. Loan amounts and interest rates must follow limits the Secretary sets. The Secretary will talk with the State Historic Preservation Officer about the project and with the Treasury about interest rates. Loans must be well secured, show a good chance of being paid back, have terms no longer than 40 years or the asset’s useful life, and the insurance can cover up to 90% of a lender’s loss. The Secretary can also set other rules about borrowers, the property, and the preservation work. The total unpaid balance of insured loans cannot be more than the money in the Historic Preservation Fund that has not been appropriated. Insurance contracts can be assigned, are backed by the U.S. government, and can only be challenged for known fraud or misrepresentation. The Secretary will set how loss payments are made. To protect government money, the Secretary may take foreclosed historic property, operate or lease it, and try to transfer it to someone who will preserve and use it; if that is impossible, the Secretary may sell it at fair market value. Sale proceeds and any fees go into the Historic Preservation Fund. Loans insured under this program count as non‑Federal funds for matching purposes. These insured debts cannot be bought or sold to the Federal Financing Bank.