165 
(e) AVAILABILITY.—The Secretary shall make funding available to indi-
vidual States and the National Trust as soon as practicable after execution 
of a grant agreement. For purposes of administration, grants to individual 
States and the National Trust each shall be deemed to be one grant and 
shall be administered by the Service as one grant. 
(f) ADMINISTRATIVE COSTS.—The total administrative costs, direct and 
indirect, charged for carrying out State projects and programs may not ex-
ceed 25 percent of the aggregate costs except in the case of a grant under 
section 203101(b) of this title. 
§ 205502. Grants to National Trust 
The Secretary of Housing and Urban Development may make grants to 
the National Trust, on terms and conditions and in amounts (not exceeding 
$90,000 with respect to any one structure) as the Secretary of Housing and 
Urban Development considers appropriate, to cover the costs incurred by 
the National Trust in renovating or restoring structures that the National 
Trust considers to be of historic or architectural value and that the National 
Trust has accepted and will maintain (after the renovation or restoration) 
for historic purposes. 
§ 205503. Apportionment of grant funds 
(a) BASES FOR APPORTIONMENT.—The amounts appropriated and made 
available for grants to the States— 
(1) for the purposes of this division shall be apportioned among the 
States by the Secretary on the basis of needs as determined by the Sec-
retary; and 
(2) for projects and programs under this division for each fiscal year 
shall be apportioned among the States as the Secretary determines to 
be appropriate. 
(b) NOTIFICATION.—The Secretary shall notify each State of its appor-
tionment under subsection (a)(2) within 30 days after the date of enactment 
of legislation appropriating funds under this division. 
(c) REAPPORTIONMENT.—Any amount of any apportionment that has not 
been paid or obligated by the Secretary during the fiscal year in which the 
notification is given or during the 2 fiscal years after that fiscal year shall 
be reapportioned by the Secretary in accordance with subsection (a)(2). The 
Secretary shall analyze and revise as necessary the method of apportion-
ment. The method and any revision shall be published by the Secretary in 
the Federal Register. 
(d) TRANSFER OF FUNDS TO CERTIFIED LOCAL GOVERNMENTS.—Not 
less than 10 percent of the annual apportionment distributed by the Sec-
retary to each State for the purposes of carrying out this division shall be 
transferred by the State, pursuant to the requirements of this division, to 
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certified local governments for historic preservation projects or programs of 
the certified local governments. In any year in which the total annual appor-
tionment to the States exceeds $65,000,000, 50 percent of the excess shall 
also be transferred by the States to certified local governments. 
(e) GUIDELINES FOR USE AND DISTRIBUTION OF FUNDS TO CERTIFIED 
LOCAL GOVERNMENTS.—The Secretary shall establish guidelines for the use 
and distribution of funds under subsection (d) to ensure that no certified 
local government receives a disproportionate share of the funds available, 
and may include a maximum or minimum limitation on the amount of funds 
distributed to any single certified local government. The guidelines shall not 
limit the ability of any State to distribute more than 10 percent of its an-
nual apportionment under subsection (d), nor shall the Secretary require 
any State to exceed the 10 percent minimum distribution to certified local 
governments. 
§ 205504. Loan insurance program for preservation of prop-
erty included on National Register 
(a) ESTABLISHMENT.—The Secretary shall maintain a program by which 
the Secretary may, on application of a private lender, insure loans (includ-
ing loans made in accordance with a mortgage) made by the lender to fi-
nance any project for the preservation of a property included on the Na-
tional Register. 
(b) LOAN QUALIFICATIONS.—A loan may be insured under this section 
if— 
(1) the loan is made by a private lender approved by the Secretary 
as financially sound and able to service the loan properly; 
(2) the amount of the loan, and interest rate charged with respect 
to the loan, do not exceed the amount and rate established by the Sec-
retary by regulation; 
(3) the Secretary has consulted the appropriate State Historic Pres-
ervation Officer concerning the preservation of the historic property; 
(4) the Secretary has determined that the loan is adequately secured 
and there is reasonable assurance of repayment; 
(5) the repayment period of the loan does not exceed the lesser of 
40 years or the expected life of the asset financed; 
(6) the amount insured with respect to the loan does not exceed 90 
percent of the loss sustained by the lender with respect to the loan; 
and 
(7) the loan, the borrower, and the historic property to be preserved 
meet such other terms and conditions as may be prescribed by the Sec-
retary by regulation, especially terms and conditions relating to the na-
ture and quality of the preservation work. 
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(c) CONSULTATION.—The Secretary shall consult with the Secretary of 
the Treasury regarding the interest rate of loans insured under this section. 
(d) LIMITATION
ON AMOUNT
OF UNPAID PRINCIPAL BALANCE
OF 
LOANS.—The aggregate unpaid principal balance of loans insured under 
this section and outstanding at any one time may not exceed the amount 
that has been deposited in the Historic Preservation Fund pursuant to sec-
tion 205511 of this title and subsections (h) and (i), as in effect on Decem-
ber 12, 1980, but which has not been appropriated for any purpose. 
(e) INSURANCE CONTRACTS.—Any contract of insurance executed by the 
Secretary under this section may be assignable, shall be an obligation sup-
ported by the full faith and credit of the United States, and shall be incon-
testable except for fraud or misrepresentation of which the holder had ac-
tual knowledge at the time it became a holder. 
(f) CONDITIONS AND METHODS OF PAYMENT AS RESULT OF LOSS.—The 
Secretary shall specify, by regulation and in each contract entered into 
under this section, the conditions and method of payment to a private lender 
as a result of losses incurred by the lender on any loan insured under this 
section. 
(g) PROTECTION
OF FINANCIAL INTERESTS
OF FEDERAL GOVERN-
MENT.—In entering into any contract to insure a loan under this section, 
the Secretary shall take steps to ensure adequate protection of the financial 
interests of the Federal Government. The Secretary may— 
(1) in connection with any foreclosure proceeding, obtain, on behalf 
of the Federal Government, the historic property securing a loan in-
sured under this section; and 
(2) operate or lease the historic property for such period as may be 
necessary to protect the interest of the Federal Government and to 
carry out subsection (h). 
(h) CONVEYANCE TO GOVERNMENTAL OR NONGOVERNMENTAL ENTITY 
OF PROPERTY ACQUIRED BY FORECLOSURE.— 
(1) ATTEMPT TO CONVEY TO ENSURE PROPERTY’S PRESERVATION 
AND USE.—In any case in which a historic property is obtained pursu-
ant to subsection (g), the Secretary shall attempt to convey the prop-
erty to any governmental or nongovernmental entity under conditions 
that will ensure the property’s continued preservation and use. If, after 
a reasonable time, the Secretary, in consultation with the Council, de-
termines that there is no feasible and prudent means to convey the 
property and to ensure its continued preservation and use, the Sec-
retary may convey the property at the fair market value of its interest 
in the property to any entity without restriction. 
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(2) DISPOSITION OF FUNDS.—Any funds obtained by the Secretary 
in connection with the conveyance of any historic property pursuant to 
paragraph (1) shall be deposited in the Historic Preservation Fund and 
shall remain available in the Historic Preservation Fund until appro-
priated by the Congress to carry out this division. 
(i) ASSESSMENT OF FEES IN CONNECTION WITH INSURING LOANS.— 
The Secretary may assess appropriate and reasonable fees in connection 
with insuring loans under this section. The fees shall be deposited in the 
Historic Preservation Fund and shall remain available in the Historic Pres-
ervation Fund until appropriated by Congress to carry out this division. 
(j) TREATMENT OF LOANS AS NON-FEDERAL FUNDS.—Notwithstanding 
any other provision of law, any loan insured under this section shall be 
treated as non-Federal funds for the purposes of satisfying any requirement 
of any other provision of law under which Federal funds to be used for any 
project or activity are conditioned on the use of non-Federal funds by the 
recipient for payment of any portion of the costs of the project or activity. 
(k) INELIGIBILITY OF DEBT OBLIGATION FOR PURCHASE OR COMMIT-
MENT TO PURCHASE BY, OR SALE OR ISSUANCE TO, FEDERAL FINANCING 
BANK.—No debt obligation that is made or committed to be made, or that 
is insured or committed to be insured, by the Secretary under this section 
shall be eligible for purchase by, or commitment to purchase by, or sale or 
issuance to, the Federal Financing Bank. 
§ 205505. Recordkeeping 
A beneficiary of assistance under this division shall keep— 
(1) such records as the Secretary shall prescribe, including records 
that fully disclose— 
(A) the disposition by the beneficiary of the proceeds of the as-
sistance; 
(B) the total cost of the project or undertaking in connection 
with which the assistance is given or used; and 
(C) the amount and nature of that portion of the cost of the 
project or undertaking supplied by other sources; and 
(2) such other records as will facilitate an effective audit. 
Subchapter II—Sources of Funds 
§ 205511. Historic Preservation Fund 
(a) ESTABLISHMENT.—To carry out this division, there is in the Treas-
ury the Historic Preservation Fund. 
(b) CONTENTS.—For each of fiscal years 2009 to 2015, $150,000,000 
shall be deposited in the Historic Preservation Fund from revenues due and 
payable to the United States under section 9 of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1338) or section 7433(b) of title 10, notwithstanding 
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