
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: 42USC12804]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                CHAPTER 130--NATIONAL AFFORDABLE HOUSING
 
             SUBCHAPTER II--INVESTMENT IN AFFORDABLE HOUSING
 
                    Part D--Specified Model Programs
 
Sec. 12804. Rehabilitation loans


(a) In general

    The Secretary shall make available a model program to provide direct 
loans to finance the rehabilitation of low and moderate income single 
family and multifamily residential properties.

(b) Condition of loans

    The Secretary shall establish terms and conditions to ensure that 
such loans are acceptable risks, taking into consideration the need for 
rehabilitation, the security for the loan and the ability of the 
borrower to repay the loan. The Secretary may establish the interest 
rate for loans under the model program, which shall include special 
interest rates for loans to borrowers with incomes below 80 percent of 
the area median income.

(c) Additional restrictions

    Guidelines for the model program may require that the property--
        (1) be located in an area that contains a substantial number of 
    dwellings in need of rehabilitation;
        (2) the property \1\ is residential and owner-occupied; and
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    \1\ So in original. The words ``the property'' probably should not 
appear.
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        (3) the property \1\ is in need of rehabilitation or 
    concentrated code enforcement within a reasonable time, and the 
    rehabilitation of such property is consistent with a local plan for 
    rehabilitation or code enforcement.

Additional guidelines for the model program shall generally comport with 
the additional protections and restrictions specified under section 
1452b \2\ of this title.
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    \2\ See References in Text note below.
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(Pub. L. 101-625, title II, Sec. 254, Nov. 28, 1990, 104 Stat. 4121.)

                       References in Text

    Section 1452b of this title, referred to in subsec. (c), was 
repealed by Pub. L. 101-625, title II, Sec. 289(b)(1), Nov. 28, 1990, 
104 Stat. 4128, which is classified to section 12839(b)(1) of this 
title.
