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Secretary may require the eligible lender authorized
under subsection (h) to issue the guarantee certifi-
cate for the loan—
‘‘(A) to indemnify the Secretary for the
loss, if the payment under the guarantee was
made within a reasonable period specified by
the Secretary; or
‘‘(B) to indemnify the Secretary for the
loss regardless of when payment under the
guarantee was made, if the Secretary deter-
mines that fraud or misrepresentation was in-
volved in connection with the origination of the
loan.
‘‘(2) TERMINATION OF AUTHORITY TO ISSUE
GUARANTEES.—The Secretary may cancel a delega-
tion of authority under subsection (h) to an eligible
lender if the Secretary determines that the lender
has violated the requirements and procedures for
guaranteed loans under this section or for other
good cause. Any such cancellation shall be made by
giving notice to the eligible lender and shall take ef-
fect upon receipt of the notice by the mortgagee or
at a later date, as the Secretary may provide. A de-
cision by the Secretary to cancel a delegation shall
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be final and conclusive and shall not be subject to
judicial review.
‘‘(k) REFINANCING.—Any loan guaranteed under this
section may be refinanced and extended in accordance
with terms and conditions that the Secretary shall pre-
scribe, but in no event for an additional amount or term
that exceeds the limitations under subsection (f).
‘‘(l) NONASSUMPTION.—The borrower under a loan
that is guaranteed under this section and under which any
portion of the principal obligation or interest remains out-
standing may not be relieved of liability with respect to
the loan, notwithstanding the transfer of property for
which the loan was made.
‘‘(m) GEOGRAPHICAL TARGETING.—
‘‘(1) STUDY.—The Secretary shall provide for
an independent entity to conduct a study to deter-
mine the extent to which borrowers in the United
States will utilize loan guarantees under this section,
the rural areas in the United States in which bor-
rowers can best utilize and most need loans guaran-
teed under this section, and the rural areas in the
United States in which housing of the type eligible
for a loan guarantee under this section is most need-
ed by low- and moderate-income families. The Sec-
retary shall require the independent entity conduct-
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ing the study to submit a report to the Secretary
and to the Congress describing the results of the
study not later than the expiration of the 90-day pe-
riod beginning on the date of the enactment of the
Homesteading and Neighborhood Restoration Act of
1995.
‘‘(2) TARGETING.—In providing loan guaran-
tees under this section, the Secretary shall establish
standards to target and give priority to rural areas
in which borrowers can best utilize and most need
loans guaranteed under this section, as determined
by the Secretary based on the results of the study
under paragraph (1) and any other information the
Secretary considers appropriate.
‘‘(n) 
INAPPLICABILITY
OF
CREDIT-ELSEWHERE
TEST.—Section 501(c) shall not apply to guarantees, or
loans guaranteed, under this section.
‘‘(o) TENANT PROTECTIONS.—The Secretary shall
establish standards for the treatment of tenants of hous-
ing developed using amounts from a loan guaranteed
under this section, which shall incorporate, to the extent
applicable, existing standards applicable to tenants of
housing developed with loans made under section 515.
Such standards shall include standards for fair housing
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and equal opportunity, lease and grievance procedures,
and tenant appeals of adverse actions.
‘‘(p) HOUSING STANDARDS.—The standards estab-
lished under section 515(m) for housing and related facili-
ties assisted under section 515 shall apply to housing and
related facilities the development costs of which are fi-
nanced in whole or in part with a loan guaranteed under
this section.
‘‘(q) LIMITATION ON COMMITMENTS TO GUARANTEE
LOANS.—
‘‘(1) REQUIREMENT OF APPROPRIATIONS FOR
COST SUBSIDY.—The authority of the Secretary to
enter into commitments to guarantee loans under
this section, and to guarantee loans, shall be effec-
tive for each fiscal year only to the extent that ap-
propriations of budget authority to cover the costs
(as such term is defined in section 502 of the Con-
gressional Budget Act of 1974) of the guarantees
are made in advance for such fiscal year.
‘‘(2) ANNUAL
LIMITATION
ON
AMOUNT
OF
LOAN GUARANTEES.—In fiscal year 1996, the Sec-
retary may enter into commitments to guarantee
loans under this section only to the extent that the
costs of the guarantees entered into in such fiscal
year do not exceed $1,000,000.
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‘‘(r) REPORT.—
‘‘(1) IN GENERAL.—The Secretary shall submit
a report to the Congress, not later than the expira-
tion of the 2-year period beginning on the date of
the enactment of the Homesteading and Neighbor-
hood Restoration Act of 1995, describing the pro-
gram under this section for guaranteeing loans.
‘‘(2) CONTENTS.—The report shall—
‘‘(A) describe the types of borrowers pro-
viding housing with loans guaranteed under this
section, the areas served by the housing pro-
vided and the geographical distribution of the
housing, the levels of income of the residents of
the housing, the number of dwelling units pro-
vided, the extent to which borrowers under such
loans have obtained other financial assistance
for development costs of housing provided with
the loans, and the extent to which borrowers
under such loans have used low-income housing
tax credits provided under section 42 of the In-
ternal Revenue Code of 1986 in connection with
the housing provided with the loans;
‘‘(B) analyze the financial viability of the
housing provided with loans guaranteed under
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this section and the need for project-based rent-
al assistance for such housing;
‘‘(C) include any recommendations of the
Secretary for expanding or improving the pro-
gram under this section for guaranteeing loans;
and
‘‘(D) include any other information regard-
ing the program for guaranteeing loans under
this section that the Secretary considers appro-
priate.
‘‘(s) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
‘‘(1) The term ‘development cost’ has the mean-
ing given the term in section 515(e).
‘‘(2) The term ‘eligible lender’ means a lender
determined by the Secretary to meet the require-
ments of subparagraph (A), (B), (C), or (D) of sub-
section (e)(1).
‘‘(3) The terms ‘housing’ and ‘related facilities’
have the meanings given such terms in section
515(e).
‘‘(t) AUTHORIZATION OF APPROPRIATIONS.—There
is authorized to be appropriated for fiscal year 1996
$1,000,000 for costs (as such term is defined in section