section 42 of the Internal Revenue Code of
1986 is to be used to assist the housing, the
term may be established by the qualified State
housing agency at a duration commensurate
with the investment requirements associated
with the tax credit syndication;
(B) in the case of a loan for the purpose
of making safety, building preservation, health,
sanitation, or security-related repairs or im-
provements to a housing project for elderly
families that are required under Federal, State,
or local law, the term may not exceed 10 years
and the sponsor shall enter into a binding com-
mitment to provide an amount equal to not less
than 25 percent of the amount of the loan for
the costs of such repairs or improvements; and
(C) the term may be extended for the pur-
pose of extending the term of the low-income
use requirements under paragraph (4) applica-
ble to the housing for which the loan was made;
and
(10) INTEREST RATE.—The interest rate for a
loan made or guaranteed under the program may be
variable or fixed, but shall be—
(A) not more than 3 percent per annum
for loans made for—
(i) housing for which the sponsor en-
ters into a binding agreement with the
qualified State housing agency that not
less than 80 percent of the dwelling units
shall be available for occupancy only by
farmworkers; or
(ii) the purpose under paragraph
(9)(B); and
(B) not less than 3 percent per annum and
not more than 9 percent per annum, for loans
for other types of housing.
(11) SELECTION OF PROJECTS.—The loan pro-
gram shall provide a competitive process for select-
ing among sponsors of housing projects applying for
loans under the program, which shall be based on
criteria that include the extent to which—
(A) the project achieves the objectives
under the loan program regarding income and
demographic characteristics of tenants;
(B) the project achieves the objectives
under the loan program regarding distribution
of available loan amounts among urban, rural,
and other areas;
(C) dwelling units in the housing project
are reserved for occupancy only by low- or very
low-income families and rented at amounts not
exceeding the amount provided under para-
graph (4), for a duration longer than required
under paragraph (4) or any other applicable
Federal law;
(D) the number of dwelling units in the
housing project that are reserved for occupancy
only by low- or very low-income families and
rented at amounts not exceeding the applicable
amount under paragraph (4) exceeds the num-
ber of units required under paragraph (4);
(E) counseling is provided for tenants of
the housing;
(F) tenants of the housing are permitted
to use rental assistance vouchers or certificates
provided pursuant to Federal or State law to
pay for rental of units in the project;
(G) the ratio of the total cost of the
project to the amount of the loan made under
the loan program for the project exceeds such
ratio for other projects for which applications
are made;
(H) contributions for the project, or com-
mitments to make such contributions, have been
made by units of general local government;
(I) the project is feasible and economically
viable;
(J) a commitment for first mortgage fi-
nancing for the project has been made; and
(K) the sponsor has experience in provid-
ing affordable housing and the ability to com-
plete the project.
(12) USE
OF
RENTAL
CERTIFICATES.—The
loan program shall require that, if any voucher or
certificate for rental assistance provided pursuant to
Federal or State law is used for rental of any dwell-
ing unit reserved for occupancy pursuant to para-
graph (4), the benefit of the voucher or certificate
shall be equally divided between the fund established
under paragraph (16) and the sponsor of the hous-
ing.
(13) LOAN TRANSFER.—A loan made or guar-
anteed under the program shall be subject to sale,
transfer, or refinancing, except that all requirements
and conditions of the loan shall apply after such
sale, transfer or refinancing.
(14) RENT
CONTROLS.—The loan program
shall provide that housing provided with a loan
under the program shall not be subject to any State
or local law, regulation, or ordinance that regulates,
limits, or controls rents.
(15) ANNUAL
INCOME
CERTIFICATION.—The
loan program shall require sponsors of housing fi-
nanced with loans made or guaranteed under the
program to annually certify to the qualified State
housing agency the income of tenants of the housing
for purposes of ensuring compliance with the low-in-
come occupancy requirements under paragraph (4).
(16) TRUST FUND.—The loan program shall es-
tablish a revolving fund, which shall—
(A) be administered by the qualified State
housing agency;
(B) be credited with (i) the amount of any
assistance provided under the demonstration
program for the loan program, (ii) any other
amounts received to carry out the loan pro-
gram, (iii) any proceeds derived from the use of
such amounts, (iv) any repayments of loans
made under the loan program (together with in-
terest on loan amounts), (v) any proceeds from
any property sold, transferred, conveyed, or
leased under the loan program, and (vi) any
other amounts received pursuant to activities
under the loan program; and
(C) be available only for making and guar-
anteeing loans under the loan program and
other costs of the loan program.
(17) POWERS OF SHFA.—The qualified State
housing agency shall have the power, under the loan
program—
(A) in the event of a default on a loan
made or guaranteed under the program, to
foreclose on any mortgage or security interest
or commence any legal action to protect the in-
terest of the agency or fund established under
paragraph (16) and recover the amount of the
unpaid principal, accrued interest, and fees on
behalf of such fund;
(B) to acquire real and personal property
and interests therein when such acquisition is
appropriate to protect any loan;
(C) to sell, transfer, or convey any such
property, and in the event that a sale, transfer,
or conveyance can not be made within a reason-
able time, to lease such property for occupancy
by eligible families;