
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC12772]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                CHAPTER 130--NATIONAL AFFORDABLE HOUSING
 
             SUBCHAPTER II--INVESTMENT IN AFFORDABLE HOUSING
 
                  Part B--Community Housing Partnership
 
Sec. 12772. Project-specific assistance to community housing 
        development organizations
        

(a) In general

    Amounts reserved under section 12771 of this title may be used for 
activities eligible under section 12742 of this title and, in amounts 
not to exceed 10 percent of the amounts so reserved, for other 
activities specified under this section.

(b) Project-specific technical assistance and site control loans

                           (1) In general

        Amounts reserved under section 12771 of this title may be used 
    to provide technical assistance and site control loans to community 
    housing development organizations in the early stages of site 
    development for an eligible project. Such loans shall not exceed 
    amounts that the jurisdiction determines to be customary and 
    reasonable project preparation costs allowable under paragraph (2).

                       (2) Allowable expenses

        A loan under this subsection may be provided to cover project 
    expenses necessary to determine project feasibility (including costs 
    of an initial feasibility study), consulting fees, costs of 
    preliminary financial applications, legal fees, architectural fees, 
    engineering fees, engagement of a development team, site control and 
    title clearance.

                            (3) Repayment

        A community housing development organization that receives a 
    loan under this subsection shall repay the loan to the participating 
    jurisdiction's HOME Investment Trust Fund from construction loan 
    proceeds or other project income. The participating jurisdiction may 
    waive repayment of the loan, in part or in whole, if there are 
    impediments to project development that the participating 
    jurisdiction determines are reasonably beyond the control of the 
    borrower.

(c) Project-specific seed money loans

                           (1) In general

        Amounts reserved under section 12771 of this title may be used 
    to provide loans to community housing development organizations to 
    cover preconstruction project costs that the jurisdiction determines 
    to be customary and reasonable, including, but not limited to the 
    costs of obtaining firm construction loan commitments, architectural 
    plans and specifications, zoning approvals, engineering studies and 
    legal fees.

                        (2) Eligible sponsors

        A loan under this subsection may be provided only to a community 
    housing development organization that has, with respect to the 
    project concerned, site control, a preliminary financial commitment, 
    and a capable development team.

                            (3) Repayment

        A community housing development organization that receives a 
    loan under this subsection shall repay the loan to the 
    jurisdiction's HOME Investment Trust Fund from construction loan 
    proceeds or other project income. The participating jurisdiction may 
    waive repayment of the loan, in whole or in part, if there are 
    impediments to project development that the participating 
    jurisdiction determines are reasonably beyond the control of the 
    borrower.

(Pub. L. 101-625, title II, Sec. 232, Nov. 28, 1990, 104 Stat. 4115.)
