‘‘(C) the loan will be fully amortized not 
later than 20 years after the date on which the 
project for which the loan was made is com-
pleted, except that, in the case of a loan made 
for a project in a low-income geographic area, 
for a low-income homeowner or to assist vulner-
able populations including residential facilities 
with assisted living, group homes for the elder-
ly, or emotionally or physically disabled, the 
participating entity may provide a longer amor-
tization period for the loan if that longer pe-
riod— 
‘‘(i) ends on a date that is not later 
than 30 years after the date on which the 
project is completed; and 
‘‘(ii) is not longer than the expected 
design life of the project; 
‘‘(D) the eligible recipient of the loan dem-
onstrates that there is a dedicated source of 
revenue or adequate income to repay the loan; 
and 
‘‘(E) payments of principal and interest 
with respect to the loan will be deposited into 
the mitigation loan fund; 
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‘‘(2) to buy or refinance the debt obligation of 
a local government at an interest rate that is not 
more than the market interest rate; 
‘‘(3) to guarantee, or purchase insurance for, a 
local obligation, the proceeds of which finance a 
project eligible for assistance under this section, if 
the guarantee or purchase, as applicable, would— 
‘‘(A) improve credit market access; or 
‘‘(B) reduce the interest rate with respect 
to the obligation; 
‘‘(4) as a source of revenue or as security for 
the payment of principal and interest on revenue or 
general obligation bonds issued by the participating 
entity if the proceeds of the sale of the bonds will 
be deposited into the mitigation loan fund; or 
‘‘(5) to earn interest on those amounts. 
‘‘(i) ADMINISTRATION OF FUND.— 
‘‘(1) IN GENERAL.—A participating entity may 
combine the financial administration of a mitigation 
loan fund with the financial administration of any 
other revolving fund established by the entity if— 
‘‘(A) combining the administration of the 
funds would— 
‘‘(i) be convenient and avoid adminis-
trative costs; and 
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‘‘(ii) not violate the law of the partici-
pating entity; and 
‘‘(B) the Administrator determines that— 
‘‘(i) amounts obtained from a grant 
made under this section, amounts obtained 
from the repayment of a loan made from 
a mitigation loan fund, and interest earned 
on amounts in a mitigation loan fund will 
be— 
‘‘(I) accounted for separately 
from amounts from other revolving 
funds; and 
‘‘(II) used only for purposes au-
thorized under this section; and 
‘‘(ii) after consulting with the appro-
priate agencies of the participating entity, 
the authority to establish assistance prior-
ities and carry out oversight and related 
activities, other than financial administra-
tion, with respect to mitigation assistance 
remains with the agency of the partici-
pating entity with primary responsibility 
for emergency management. 
‘‘(2) 
ADMINISTRATIVE
AND
TECHNICAL 
COSTS.— 
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‘‘(A) IN GENERAL.—For each fiscal year, a 
participating entity may use the amount de-
scribed in subparagraph (B) to— 
‘‘(i) pay the reasonable costs of ad-
ministration of the programs under this 
section, including the recovery of reason-
able costs incurred in establishing a miti-
gation loan fund; 
‘‘(ii) provide appropriate oversight of 
projects authorized under this section; and 
‘‘(iii) 
provide 
technical 
assistance 
training and outreach to recipients in the 
geographical jurisdiction of the partici-
pating entity of amounts under this sec-
tion, including with respect to updating 
hazard mitigation plans and participating 
in the Community Rating System, in an 
amount that is not more than 5 percent of 
the funds made available to the entity 
under this section. 
‘‘(B) 
DESCRIPTION.—The 
amount 
de-
scribed in this subparagraph is an amount 
equal to the sum of— 
‘‘(i) any fees collected by a partici-
pating entity to recover the costs described 
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in subparagraph (A)(i), regardless of the 
source; and 
‘‘(ii) the greatest of— 
‘‘(I) $100,000; 
‘‘(II) 1.0 percent of the value of 
the mitigation loan fund, as of the 
date on which the valuation is made; 
and 
‘‘(III) an amount equal to 2.0 
percent of all grant awards made to a 
participating entity for the mitigation 
loan fund under this section for the 
fiscal year. 
‘‘(3) AUDIT AND REPORT.— 
‘‘(A) AUDIT REQUIREMENT.—Not less fre-
quently than every 2 years, each participating 
entity shall conduct an audit of the mitigation 
loan fund of the entity. 
‘‘(B) REPORT.—Each participating entity 
shall submit to the Administrator a biennial re-
port regarding the activities of the participating 
entity under this section during the period cov-
ered by the report, including— 
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‘‘(i) the result of any audit conducted 
by the participating entity under subpara-
graph (A); and 
‘‘(ii) a review of the effectiveness of 
the mitigation loan fund of the entity with 
respect to— 
‘‘(I) the intended use plans of the 
entity; and 
‘‘(II) meeting the objectives de-
scribed in subsection (b)(1). 
‘‘(4) OVERSIGHT.—In conducting oversight with 
respect to mitigation loan funds established under 
this section, the Administrator— 
‘‘(A) shall— 
‘‘(i) periodically audit the funds in ac-
cordance with procedures established by 
the Comptroller General of the United 
States; and 
‘‘(ii) not less frequently than once 
every 4 years, review each mitigation loan 
fund to determine the effectiveness of the 
fund in reducing hazard risk; and 
‘‘(B) may, at any time— 
‘‘(i) make recommendations to a par-
ticipating entity with respect to the admin-
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financial assistance under this section. Such contribution 
shall be deemed to be related to activities carried out pur-
suant to a major disaster under this Act. 
‘‘(l) DUPLICATION OF BENEFITS.—The financial as-
sistance provided pursuant to this section to participating 
entities, and the loans made to eligible recipients shall not 
be determined to be a duplication of assistance.’’. 
Æ 
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