Section 254 Rehabilitation Loans

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From the U.S. Code Online via GPO Access
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[Laws in effect as of January 6, 1999]
[Document not affected by Public Laws enacted between
January 6, 1999 and October 26, 2000]
[CITE: 42USC12804]

TITLE 42--THE PUBLIC HEALTH AND WELFARE

CHAPTER 130--NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II--INVESTMENT IN AFFORDABLE HOUSING

Part D--Specified Model Programs

Sec. 254. Rehabilitation loans

1. In general
   The Secretary shall make available a model program to provide direct loans to finance the rehabilitation of low and moderate income single family and multifamily residential properties.
   
   
2. Condition of loans
   The Secretary shall establish terms and conditions to ensure that such loans are acceptable risks, taking into consideration the need for rehabilitation, the security for the loan and the ability of the borrower to repay the loan. The Secretary may establish the interest rate for loans under the model program, which shall include special interest rates for loans to borrowers with incomes below 80 percent of the area median income.
   
   
3. Additional restrictionsGuidelines for the model program may require that the property--
   1. be located in an area that contains a substantial number of dwellings in need of rehabilitation;
      
   2. the property \1\ is residential and owner-occupied; and
      

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      \1\ So in original. The words "the property'' probably should not
      appear.
      

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   3. the property \1\ is in need of rehabilitation or
      concentrated code enforcement within a reasonable time, and the
      rehabilitation of such property is consistent with a local plan for
      rehabilitation or code enforcement.
   
   Additional guidelines for the model program shall generally comport with
   the additional protections and restrictions specified under section
   1452b \2\ of this title.
   

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   \2\ See References in Text note below.
   

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(Pub. L. 101-625, title II, Sec. 254, Nov. 28, 1990, 104 Stat. 4121.)

References in Text

Section 1452b of this title, referred to in subsec. (c), was repealed by Pub. L. 101-625, title II, Sec. 289(b)(1), Nov. 28, 1990, 104 Stat. 4128, which is classified to section 12839(b)(1) of this title.