Source: https://www.law.cornell.edu/uscode/text/42/1490p%E2%80%932
Timestamp: 2019-07-18 11:14:12
Document Index: 422173288

Matched Legal Cases: ['§ 1490', '§ 1490', '§ 1490', '§\u202f1490', '§\u202f538', '§\u202f5', '§\u202f735', '§\u202f599', '§\u202f707', '§\u202f1701', '§\u202f3002', '§\u202f1601', '§\u202f450', '§\u202f5301', '§\u202f461', '§\u202f5101', '§\u202f707', '§\u202f707', '§\u202f707', '§\u202f707', '§\u202f707', '§\u202f707', '§\u202f707', '§\u202f707', '§\u202f707', '§\u202f707', '§\u202f707', '§\u202f599', '§\u202f599', '§\u202f735', '§\u202f735', '§\u202f735', '§\u202f5']

42 U.S. Code § 1490p–2 - Loan guarantees for multifamily rental housing in rural areas | US Law | LII / Legal Information Institute
U.S. Code › Title 42 › Chapter 8A › Subchapter III › § 1490p–2
42 U.S. Code § 1490p–2 - Loan guarantees for multifamily rental housing in rural areas
§ 1490p–2.
Loan guarantees for multifamily rental housing in rural areas
(d) Eligible housingA loan may be guaranteed under this section only if the loan is used for the development costs of housing and related facilities (as such terms are defined in section 1485(e) of this title) that—
consists of 5 or more adequate dwellings;
is available for occupancy only by low or moderate income [1] families or persons, whose incomes at the time of initial occupancy do not exceed 115 percent of the median income of the area, as determined by the Secretary;
there is no longer a need for low- and moderate-income housing in the market area in which the housing is located;
housing opportunities for low-income households and minorities will not be reduced as a result of the waiver; and
additional Federal assistance will not be necessary as a result of the waiver; and
is located in a rural area.
(1) RequirementA loan may be guaranteed under this section only if the loan is made by a lender that the Secretary determines—
meets the qualifications, and has been approved by the Secretary of Housing and Urban Development, to make loans for multifamily housing that are to be insured under the National Housing Act [12 U.S.C. 1701 et seq.];
meets the qualifications, and has been approved by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, to make loans for multifamily housing that are to be sold to such corporations; or
meets any qualifications that the Secretary may, by regulation, establish for participation of lenders in the loan guarantee program under this section.
(f) Loan termsEach loan guaranteed pursuant to this section shall—
be made for a period of not less than 25 nor greater than 40 years from the date the loan was made and may provide for amortization of the loan over a period of not to exceed 40 years with a final payment of the balance due at the end of the loan term;
involve a rate of interest agreed upon by the borrower and the lender that does not exceed the maximum allowable rate established by the Secretary for purposes of this section and is fixed over the term of the loan;
in the case of a borrower that is a nonprofit organization or an agency or body of any State or local government, 97 percent of the development costs of the housing and related facilities or the value of the housing and facilities, whichever is less;
in the case of a borrower that is a for-profit entity not referred to in subparagraph (A), 90 percent of the development costs of the housing and related facilities or the value of the housing and facilities, whichever is less; and
in the case of any borrower, for such part of the property as may be attributable to dwelling use, the applicable maximum per unit dollar amount limitations under section 207(c) of the National Housing Act [12 U.S.C. 1713(c)];
be secured by a first mortgage on the housing and related facilities for which the loan is made, or otherwise, as the Secretary may determine necessary to ensure repayment of the obligation; and
for at least 20 percent of the loans made under this section, the Secretary shall provide the borrower with assistance in the form of credits pursuant to section 1490a(a)(1)(B) of this title to the extent necessary to reduce the rate of interest under paragraph (2) to the applicable Federal rate, as such term is used in section 42(i)(2)(D) [2] of title 26.
(1) IndemnificationIf the Secretary determines that a loan guaranteed by an eligible lender pursuant to delegation of authority under subsection (h) was not originated in accordance with the requirements under this section and the Secretary pays a claim under the guarantee for the loan, the Secretary may require the eligible lender authorized under subsection (h) to issue the guarantee certificate for the loan—
to indemnify the Secretary for the loss, if the payment under the guarantee was made within a reasonable period specified by the Secretary; or
to indemnify the Secretary for the loss regardless of when payment under the guarantee was made, if the Secretary determines that fraud or misrepresentation was involved in connection with the origination of the loan.
describe the types of borrowers providing housing with loans guaranteed under this section, the areas served by the housing provided and the geographical distribution of the housing, the levels of income of the residents of the housing, the number of dwelling units provided, 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 title 26 in connection with the housing provided with the loans;
analyze the financial viability of the housing provided with loans guaranteed under this section and the need for project-based rental assistance for such housing;
include any recommendations of the Secretary for expanding or improving the program under this section for guaranteeing loans; and
include any other information regarding the program for guaranteeing loans under this section that the Secretary considers appropriate.
(r) DefinitionsFor purposes of this section, the following definitions shall apply:
The term “development cost” has the meaning given the term in section 1485(e) of this title.
The term “eligible lender” means a lender determined by the Secretary to meet the requirements of subparagraph (A), (B), (C), or (D) of subsection (e)(1).
The terms “housing” and “related facilities” have the meanings given such terms in section 1485(e) of this title.
(4)Indian tribe.—The term “Indian tribe” means—
any Indian tribe, band, nation, or other organized group or community of Indians, including any Alaska Native village or regional or village corporation, as defined by or established pursuant to the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.), that is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians pursuant to the Indian Self-Determination and Education Assistance Act of 1975 (25 U.S.C. 450 et seq.); 2 or
any entity established by the governing body of an Indian tribe described in subparagraph (A) for the purpose of financing economic development.
The Secretary may not deny a guarantee under this section on the basis that the interest on the loan or on an obligation supporting the loan for which a guarantee is sought is exempt from inclusion in gross income for purposes of chapter I [3] of title 26.
In the event of a default involving a loan to an Indian tribe or tribal corporation made under this section which is secured by an interest in land within such tribe’s reservation (as determined by the Secretary of the Interior), including a community in Alaska incorporated by the Secretary of the Interior pursuant to the Indian Reorganization Act (25 U.S.C. 461 et seq.),2 the lender shall only pursue liquidation after offering to transfer the account to an eligible tribal member, the tribe, or the Indian housing authority serving the tribe. If the lender subsequently proceeds to liquidate the account, the lender shall not sell, transfer, or otherwise dispose of or alienate the property except to one of the entities described in the preceding sentence.
(July 15, 1949, ch. 338, title V, § 538, as added and amended Pub. L. 104–120, § 5, Mar. 28, 1996, 110 Stat. 835; Pub. L. 105–86, title VII, § 735(c), Nov. 18, 1997, 111 Stat. 2111; Pub. L. 105–276, title V, § 599C(c), Oct. 21, 1998, 112 Stat. 2661; Pub. L. 106–569, title VII, § 707, Dec. 27, 2000, 114 Stat. 3015.)
[1]  So in original. Probably should be “low- or moderate-­income”.
[3]  So in original. Probably should be chapter “1”.
The National Housing Act, referred to in subsec. (e)(1)(A), is act June 27, 1934, ch. 847, 48 Stat. 1246, as amended, which is classified principally to chapter 13 (§ 1701 et seq.) of Title 12, Banks and Banking. For complete classification of this Act to the Code, see section 1701 of Title 12 and Tables.
Subpar. (D) of section 42(i)(2) of title 26, referred to in subsec. (f)(5), was repealed by Pub. L. 110–289, div. C, title I, § 3002(b)(2)(C), July 30, 2008, 122 Stat. 2880.
The Alaska Native Claims Settlement Act, referred to in subsec. (r)(4)(A), is Pub. L. 92–203, Dec. 18, 1971, 85 Stat. 688, as amended, which is classified generally to chapter 33 (§ 1601 et seq.) of Title 43, Public Lands. For complete classification of this Act to the Code, see Short Title note set out under section 1601 of Title 43 and Tables.
The Indian Self-Determination and Education Assistance Act of 1975 (25 U.S.C. 450 et seq.), referred to in subsec. (r)(4)(A), probably means the Indian Self-Determination and Education Assistance Act, Pub. L. 93–638, Jan. 4, 1975, 88 Stat. 2203, which was classified principally to subchapter II (§ 450 et seq.) of chapter 14 of Title 25, Indians, prior to editorial reclassification as chapter 46 (§ 5301 et seq.) of Title 25. For complete classification of this Act to the Code, see Short Title note set out under section 5301 of Title 25 and Tables.
The Indian Reorganization Act (25 U.S.C. 461 et seq.), referred to in subsec. (v), is act June 18, 1934, ch. 576, 48 Stat. 984, which was classified generally to subchapter V (§ 461 et seq.) of chapter 14 of Title 25, Indians, prior to editorial reclassification as chapter 45 (§ 5101 et seq.) of Title 25. For complete classification of this Act to the Code, see Short Title note set out under section 5101 of Title 25 and Tables.
2000—Subsec. (c). Pub. L. 106–569, § 707(1), inserted “an Indian tribe,” after “political subdivision thereof,”.
Subsec. (f)(1). Pub. L. 106–569, § 707(2), added par. (1) and struck out former par. (1) which read as follows: “provide for complete amortization by periodic payments to be made for a term not to exceed 40 years;”.
Subsec. (i)(2). Pub. L. 106–569, § 707(3), substituted “(A) submission to the Secretary of a claim for payment under the guarantee, and (B) assignment” for “(A) conveyance to the Secretary of title to the security property, (B) submission to the Secretary of a claim for payment under the guarantee, and (C) assignment”.
Subsec. (l). Pub. L. 106–569, § 707(6), (7), redesignated subsec. (m) as (l) and struck out heading and text of former subsec. (l). Text read as follows: “The borrower under a loan that is guaranteed under this section and under which any portion of the principal obligation or interest remains outstanding may not be relieved of liability with respect to the loan, notwithstanding the transfer of property for which the loan was made.”
Subsecs. (m) to (r). Pub. L. 106–569, § 707(7), redesignated subsecs. (n) to (s) as (m) to (r), respectively. Former subsec. (m) redesignated (l).
Subsec. (s). Pub. L. 106–569, § 707(7), redesignated subsec. (t) as (s). Former subsec. (s) redesignated (r).
Subsec. (s)(4). Pub. L. 106–569, § 707(4), added par. (4).
Subsec. (t). Pub. L. 106–569, § 707(7), redesignated subsec. (u) as (t). Former subsec. (t) redesignated (s).
Pub. L. 106–569, § 707(5), inserted before period at end “to provide guarantees under this section for eligible loans having an aggregate principal amount of $500,000,000”.
Subsec. (u). Pub. L. 106–569, § 707(8), added subsec. (u). Former subsec. (u) redesignated (t).
Subsec. (v). Pub. L. 106–569, § 707(8), added subsec. (v).
1998—Subsec. (t). Pub. L. 105–276, § 599C(c)(1), substituted “each fiscal year” for “fiscal year 1998”.
Subsec. (u). Pub. L. 105–276, § 599C(c)(2), added subsec. (u) and struck out heading and text of former subsec. (u). Text read as follows: “A loan may not be guaranteed under this section after September 30, 1998.”
1997—Subsec. (q)(2). Pub. L. 105–86, § 735(c)(1), added par. (2) and struck out heading and text of former par. (2). Text read as follows: “In fiscal year 1996, the Secretary 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.”
Subsec. (t). Pub. L. 105–86, § 735(c)(2), added subsec. (t) and struck out text of former subsec. (t). Text read as follows: “There is authorized to be appropriated for fiscal year 1996 $1,000,000 for costs (as such term is defined in section 661a of title 2) of loan guarantees made under this section.”
Subsec. (u). Pub. L. 105–86, § 735(c)(3), substituted “1998” for “1996”.
1996—Subsecs. (m)(1), (r)(1). Pub. L. 104–120, § 5(b), made technical amendment to reference in original act which appears in text as reference to March 28, 1996.