From
the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 6, 1999]
[Document not affected by Public Laws enacted between
January 6, 1999 and October 26, 2000]
[CITE: 42USC12802]
TITLE
42--THE PUBLIC HEALTH AND WELFARE
CHAPTER 130--NATIONAL AFFORDABLE HOUSING
SUBCHAPTER II--INVESTMENT IN AFFORDABLE HOUSING
Part D--Specified Model Programs
Sec. 252. Rental housing production
- Repayable advances
- In
general
The
Secretary shall make available a model program under which
repayable advances may be made to public and private project
sponsors in constructing, acquiring, or substantially rehabilitating
projects to be used as affordable rental housing, including
limited equity cooperatives and mutual housing.
- Maximum
amount of advance
An
advance under this model program shall not exceed 50 percent
of the total costs associated with the construction, acquisition,
or substantial rehabilitation of the project, as determined
by the participating jurisdiction.
- Terms
of repayment
- Interest
payments
- In
general
Under
the model program, advances shall be repaid with
interest calculated at a rate of not more than 3
percent per year, as determined by the participating
jurisdiction to be appropriate. Interest shall begin
to accrue 1 year after the completion of the construction,
acquisition, or substantial rehabilitation of the
project and shall be payable in annual installments.
- Exception
Interest
and any accrued interest shall be payable only from
the surplus cash flow of the project, after a minimum
return on equity determined by the participating
jurisdiction to be appropriate. As used in the previous
sentence, the term "surplus cash flow'' means
the cash flow of the project after the payment of
all amounts due under the first mortgage, operating
expenses, and required replacement reserves, as
determined by the participating jurisdiction.
- Additional
interest payments
Under
the model program, for any year in which the sum of
the surplus cash flow of a project and the return on
equity exceeds all interest payments due under subparagraph
(A), 50 percent of the excess surplus cash flow shall
be paid to the participating jurisdiction's HOME Investment
Trust Fund as additional interest.
- Principal
and unpaid interest
The
principal amount of an advance under the model program,
and any interest remaining unpaid pursuant to subparagraph
(A)(ii) shall be repayable when the housing no longer
qualifies as affordable housing in accordance with section
12749(b) of this title.
- Selection
guidelines
- In
general
The
Secretary shall establish guidelines for the selection of
projects by participating jurisdictions for assistance under
the model program. Such guidelines shall be designed to
select projects in areas and for markets demonstrating the
greatest need for the production of affordable rental housing.
- Specific
requirements
The
selection guidelines may include--
- the extent of the shortage of rental housing in the
area that is available to low-income families;
- the extent large families with children will be served
by the project;
- the extent to which the project provides congregate
facilities and has available supportive services that
will permit elderly or handicapped residents who become
frail and are in need of assistance in living to continue
to reside in the project;
- the extent of very low-income and low-income occupancy
in excess of the income targeting requirements in section
12744 of this title;
- the extent of the project sponsor's commitment of
equity to the project (except that this criterion shall
not apply to or affect the selection of applications
submitted by public housing agencies and nonprofit entities);
- the extent of the project sponsor's commitment of
equity to the project in comparison to the value of
all public assistance for the project, including assistance
under this subchapter, other Federal assistance and
financing, and State and local government contributions
(except that this criterion shall not apply to or affect
the selection of applications submitted by public housing
agencies and nonprofit entities);
- the extent of non-Federal public or private assistance
to the project;
- the extent to which the project provides supportive
services for persons with disabilities; and
- any other factor determined by the Secretary to be
appropriate.
- Guidelines
The
Secretary shall publish guidelines for the model program under
this section not later than 180 days after November 28, 1990.
(Pub.
L. 101-625, title II, Sec. 252, Nov. 28, 1990, 104 Stat. 4119.)
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