
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document affected by Public Law 106-569 Section 706]
[CITE: 42USC1490a]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
       CHAPTER 8A--SLUM CLEARANCE, URBAN RENEWAL, AND FARM HOUSING
 
                      SUBCHAPTER III--FARM HOUSING
 
Sec. 1490a. Loans to provide occupant owned, rental, and 
        cooperative housing for low and moderate income, elderly or 
        handicapped persons or families
        

(a) Interest rates; credits; determination of eligibility; recoupment; 
        multi-family housing projects; assistance payments to owners; 
        amount limitations; recordkeeping and payment requirements for 
        owners; shared housing for elderly and handicapped; rental 
        assistance tenant contribution

    (1)(A) Notwithstanding the provisions of sections 1472, 1487(a) and 
1485 of this title, loans to persons of low or moderate income under 
section 1472 or 1487(a)(1) \1\ of this title, loans under section 1485 
of this title to provide rental or cooperative housing and related 
facilities for persons and families of low or moderate income or elderly 
or handicapped persons or families and loans under section 1490f of this 
title to provide condominium housing for persons and families of low or 
moderate income, shall bear interest at a rate prescribed by the 
Secretary at not less than a rate determined by the Secretary of the 
Treasury upon the request of the Secretary taking into consideration the 
current average market yield on outstanding marketable obligations of 
the United States with remaining periods to maturity comparable to the 
average maturities of such loans, adjusted to the nearest one-eighth of 
1 per centum. Any loan guaranteed under this subchapter shall bear 
interest at such rate as may be agreed upon by the borrower and the 
lender.
---------------------------------------------------------------------------
    \1\ See References in Text note below.
---------------------------------------------------------------------------
    (B) From the interest rate so determined, the Secretary may provide 
the borrower with assistance in the form of credits so as to reduce the 
effective interest rate to a rate not less than 1 per centum per annum 
for such periods of time as the Secretary may determine for applicants 
described in subparagraph (A) if without such assistance such applicants 
could not afford the dwelling or make payments on the indebtedness of 
the rental or cooperative housing. In the case of assistance provided 
under this subparagraph with respect to a loan under section 1472 of 
this title, the Secretary may not reduce, cancel, or refuse to renew the 
assistance due to an increase in the adjusted income of the borrower if 
the reduction, cancellation, or nonrenewal will cause the borrower to be 
unable to reasonably afford the resulting payments required under the 
loan.
    (C) For persons of low income under section 1472 or 1487(a) of this 
title who the Secretary determines are unable to afford a dwelling with 
the assistance provided under subparagraph (B) and when the Secretary 
determines that assisted rental housing programs (as authorized under 
this subchapter, the National Housing Act [12 U.S.C. 1701 et seq.], and 
the United States Housing Act of 1937 [42 U.S.C. 1437 et seq.]) would be 
unsuitable in the area in which such persons reside, the Secretary may 
provide additional assistance, pursuant to amounts approved in 
appropriation Acts and for such periods of time as the Secretary may 
determine, which may be in an amount not to exceed the difference 
between (i) the amount determined by the Secretary to be necessary to 
pay the principal indebtedness, interest, taxes, insurance, utilities, 
and maintenance, and (ii) 25 per centum of the income of such applicant. 
The amount of such additional assistance which may be approved in 
appropriation Acts may not exceed an aggregate amount of $100,000,000. 
Such additional assistance may not be so approved with respect to any 
fiscal year beginning on or after October 1, 1981.
    (D)(i) With respect to borrowers under section 1472 or 1487(a) of 
this title who have received assistance under subparagraph (B) or (C), 
the Secretary shall provide for the recapture of all or a portion of 
such assistance rendered upon the disposition or nonoccupancy of the 
property by the borrower. In providing for such recapture, the Secretary 
shall make provisions to provide incentives for the borrower to maintain 
the property in a marketable condition. Notwithstanding any other 
provision of law, any such assistance whenever rendered shall constitute 
a debt secured by the security instruments given by the borrower to the 
Secretary to the extent that the Secretary may provide for recapture of 
such assistance.
    (ii) In determining the amount recaptured under this subparagraph 
with respect to any loan made pursuant to section 1472(a)(3) of this 
title for the purchase of a dwelling located on land owned by a 
community land trust, the Secretary shall determine any appreciation of 
the dwelling based on any agreement between the borrower and the 
community land trust that limits the sale price or appreciation of the 
dwelling.
    (E) Except for Federal or State laws relating to taxation, the 
assistance rendered to any borrower under subparagraphs (B) and (C) 
shall not be considered to be income or resources for any purpose under 
any Federal or State laws including, but not limited to, laws relating 
to welfare and public assistance programs.
    (F) Loans subject to the interest rates and assistance provided 
under this paragraph (1) may be made only when the Secretary determines 
the needs of the applicant for necessary housing cannot be met with 
financial assistance from other sources including assistance under the 
National Housing Act [12 U.S.C. 1701 et seq.] and the United States 
Housing Act of 1937 [42 U.S.C. 1437 et seq.].
    (G) Interest on loans under section 1472 or 1487(a) of this title to 
victims of a natural disaster shall not exceed the rate which would be 
applicable to such loans under section 1472 of this title without regard 
to this section.
    (2)(A) The Secretary shall make and insure loans under this section 
and sections 1484, 1485, and 1487 of this title to provide rental or 
cooperative housing and related facilities for persons and families of 
low income in multifamily housing projects, and shall make, and contract 
to make, assistance payments to the owners of such rental, congregate, 
or cooperative housing in order to make available to low-income 
occupants of such housing rentals at rates commensurate to income and 
not exceeding the highest of (i) 30 per centum of monthly adjusted 
income, (ii) 10 per centum of monthly income, or (iii) if the person or 
family is receiving payments for welfare assistance from a public 
agency, the portion of such payments which is specifically designated by 
such agency to meet the person's or family's housing costs. Any rent or 
contribution of any recipient shall not increase as a result of this 
section or any other provision of Federal law or regulation by more than 
10 per centum during any twelve-month period, unless the increase above 
10 per centum is attributable to increases in income which are unrelated 
to this subsection or other law or regulation.
    (B) The owner of any project assisted under this paragraph or 
paragraph (5) shall be required to provide at least annually a budget of 
operating expenses and record of tenants' income. The budget (and the 
income, in the case of a project assisted under this paragraph) shall be 
used to determine the amount of the assistance for each project.
    (C) The project owner shall accumulate, safeguard, and periodically 
pay to the Secretary any rental charges collected in excess of basic 
rental charges as established by the Secretary in conformity with 
subparagraph (A). These funds may be credited to the appropriation and 
used by the Secretary for making such assistance payments through the 
end of the next fiscal year. Notwithstanding the preceding sentence, 
excess funds received from tenants in projects financed under section 
1485 of this title during a fiscal year shall be available during the 
next succeeding fiscal year, together with funds provided under 
subparagraph (D), to the extent approved in appropriations Acts, to make 
assistance payments to reduce rent overburden on behalf of tenants of 
any such project whose rents exceed the levels referred to in 
subparagraph (A). In providing assistance to relieve rent overburden, 
the Secretary shall provide assistance with respect to very low-income 
and low-income families to reduce housing rentals to the levels 
specified in subparagraph (A).
    (D) The Secretary, to the extent approved in appropriation Acts, may 
enter into rental assistance contracts aggregating not more than 
$398,000,000 in carrying out subparagraph (A) with respect to the fiscal 
year ending on September 30, 1982.
    (E) In order to assist elderly or handicapped persons or families 
who elect to live in a shared housing arrangement in which they benefit 
as a result of sharing the facilities of a dwelling with others in a 
manner that effectively and efficiently meets their housing needs and 
thereby reduces their cost of housing, the Secretary shall permit rental 
assistance to be used by such persons or families if the shared housing 
arrangement is in a single-family dwelling. For the purpose of this 
subparagraph, the Secretary shall prescribe minimum habitability 
standards to assure decent, safe, and sanitary housing for such families 
while taking into account the special circumstances of shared housing.
    (3)(A) In the case of loans under sections 1484 and 1485 of this 
title approved prior to the effective date of this paragraph with 
respect to which rental assistance is provided, the rent for tenants 
receiving such assistance shall not exceed the highest of (i) 30 per 
centum of monthly adjusted income, (ii) 10 per centum of monthly income, 
or (iii) if the person or family is receiving payments for welfare 
assistance from a public agency, the portion of such payments which is 
specifically designated by such agency to meet the person's or family's 
housing costs.
    (B) In the case of a section 1485 loan approved prior to the 
effective date of this paragraph with respect to which interest credits 
are provided, the tenant's rent shall not exceed the highest of (i) 30 
per centum of monthly adjusted income, (ii) 10 per centum of monthly 
income, or (iii) if the person or family is receiving payments for 
welfare assistance from a public agency, the portion of such payments 
which is specifically designated by such agency to meet the person's or 
family's housing costs, or, where no rental assistance authority is 
available, the rent level established on a basis of a 1 per centum 
interest rate on debt service.
    (C) No rent for a unit financed under section 1484 or 1485 of this 
title shall be increased as a result of this subsection or other 
provision of Federal law or Federal regulation by more than 10 per 
centum in any twelve-month period, unless the increase above 10 per 
centum is attributable to increases in income which are unrelated to 
this subsection or other law, or regulation.
    (4) In the case of a loan with respect to the purchase of a 
manufactured home with respect to which rental assistance is provided, 
the monthly payment for principal and interest on the manufactured home 
and for lot rental and utilities shall not exceed the highest of (A) 30 
per centum of monthly adjusted income, (B) 10 per centum of monthly 
income, or (C) if the person or family is receiving payments for welfare 
assistance from a public agency, the portion of such payments which is 
specifically designated by such agency to meet the person's or family's 
housing costs.
    (5) Operating assistance for migrant farmworker projects.--
        (A) Authority.--In the case of housing (and related facilities) 
    for migrant farmworkers provided or assisted with a loan under 
    section 1484 of this title or a grant under section 1486 of this 
    title, the Secretary may, at the request of the owner of the 
    project, use amounts provided for rental assistance payments under 
    paragraph (2) to provide assistance for the costs of operating the 
    project. Any project assisted under this paragraph may not receive 
    rental assistance under paragraph (2).
        (B) Amount.--In any fiscal year, the assistance provided under 
    this paragraph for any project shall not exceed an amount equal to 
    90 percent of the operating costs for the project for the year, as 
    determined by the Secretary. The amount of assistance to be provided 
    for a project under this paragraph shall be an amount that makes 
    units in the project available to migrant farmworkers in the area of 
    the project at rates not exceeding 30 percent of the monthly 
    adjusted incomes of such farmworkers, based on the prevailing 
    incomes of such farmworkers in the area.
        (C) Submission of information.--The owner of a project assisted 
    under this paragraph shall be required to provide to the Secretary, 
    at least annually, a budget of operating expenses and estimated 
    rental income, which the Secretary may use to determine the amount 
    of assistance for the project.
        (D) Definitions.--For purposes of this paragraph, the following 
    definitions shall apply:
            (i) The term ``migrant farmworker'' has the same meaning 
        given such term in section 1486(k)(7) of this title.
            (ii) The term ``operating cost'' means expenses incurred in 
        operating a project, including expenses for--
                (I) administration, maintenance, repair, and security of 
            the project;
                (II) utilities, fuel, furnishings, and equipment for the 
            project; and
                (III) maintaining adequate reserve funds for the 
            project.

(b) Location in rural areas; inclusion of qualified nonrural residents 
        who will become rural residents

    Housing and related facilities provided with loans described in 
subsection (a) of this section shall be located in rural areas; and 
applicants eligible for such loans under section 1472, 1487(a)(1),\2\ or 
1490f(a) of this title, or for occupancy of housing provided with such 
loans under section 1485 or 1490f(c) of this title, shall include 
otherwise qualified nonrural residents who will become rural residents.
---------------------------------------------------------------------------
    \2\ See References in Text note below.
---------------------------------------------------------------------------

(c) Reimbursement of Rural Housing Insurance Fund

    There shall be reimbursed to the Rural Housing Insurance Fund by 
annual appropriations (1) the amounts by which nonprincipal payments 
made from the fund during each fiscal year to the holders of insured 
loans described in subsection (a)(1) of this section exceed interest due 
from the borrowers during each year, and (2) the amount of assistance 
payments described in subsections (a)(2) and (a)(5) of this section. 
There are authorized to be appropriated to the Rural Housing Insurance 
Fund such sums as may be necessary to reimburse such fund for the amount 
of assistance payments described in subsection (a)(1)(C) of this 
section. The Secretary may from time to time issue notes to the 
Secretary of the Treasury under section 1487(h) and of this title and 
section 1490f of this title to obtain amounts equal to such unreimbursed 
payments, pending the annual reimbursement by appropriation.

(d) Rental assistance contract authority; preconditions, limitations, 
        etc.

    (1) In utilizing the rental assistance payments authority pursuant 
to subsection (a)(2) of this section--
        (A) the Secretary shall make such assistance available in 
    existing projects for units occupied by low income families or 
    persons to extend expiring contracts or to provide additional 
    assistance when necessary to provide the full amount authorized 
    pursuant to existing contracts;
        (B) any such authority remaining after carrying out subparagraph 
    (A) shall be used in projects receiving commitments under section 
    1484, 1485, or 1486 of this title after fiscal year 1983 for 
    contracts to assist very low-income families or persons to occupy 
    the units in such projects, except that not more than 5 percent of 
    the units assisted may be occupied by low income families or persons 
    who are not very low-income families or persons; and
        (C) any such authority remaining after carrying out 
    subparagraphs (A) and (B) may be used to provide further assistance 
    to existing projects under section 1484, 1485, or 1486 of this 
    title.

    (2) The Secretary shall transfer rental assistance contract 
authority under this section from projects where such authority is 
unused after initial rentup and not needed because of a lack of eligible 
tenants in the area to projects where such authority is needed.

(e) Increases in rent or contribution of any recipient

    Any rent or contribution of any recipient or any tenant in a project 
assisted under subsection (a)(5) of this section shall not increase as a 
result of this section, any amendment thereto, or any other provision of 
Federal law or regulation by more than 10 per centum during any twelve-
month period, unless the increase above 10 per centum is attributable to 
increases in income which are unrelated to this subsection or other law 
or regulation.

(July 15, 1949, ch. 338, title V, Sec. 521, as added Pub. L. 90-448, 
title X, Sec. 1001, Aug. 1, 1968, 82 Stat. 551; amended Pub. L. 93-383, 
title V, Secs. 514(a), (b), 516(c), Aug. 22, 1974, 88 Stat. 696, 698; 
Pub. L. 94-375, Sec. 25(a), Aug. 3, 1976, 90 Stat. 1078; Pub. L. 95-128, 
title V, Secs. 502(d), 507(a)(4), (5), 511, Oct. 12, 1977, 91 Stat. 
1139, 1140, 1142; Pub. L. 95-557, title V, Secs. 506(a), 507, Oct. 31, 
1978, 92 Stat. 2112, 2113; Pub. L. 96-153, title V, Secs. 501(c), 
502(a), 504, Dec. 21, 1979, 93 Stat. 1133-1135; Pub. L. 96-372, 
Sec. 6(d), Oct. 3, 1980, 94 Stat. 1364; Pub. L. 96-399, title V, 
Secs. 501(e), (f), 505, Oct. 8, 1980, 94 Stat. 1668, 1669; Pub. L. 97-
35, title III, Secs. 351(d), 352, Aug. 13, 1981, 95 Stat. 421; Pub. L. 
98-181, title V, Secs. 516, 517(a)-(c), (e), Nov. 30, 1983, 97 Stat. 
1247-1249; Pub. L. 98-479, title I, Sec. 105(h), Oct. 17, 1984, 98 Stat. 
2227; Pub. L. 100-242, title III, Secs. 309, 316(d), Feb. 5, 1988, 101 
Stat. 1896, 1898; Pub. L. 101-625, title VII, Sec. 716, Nov. 28, 1990, 
104 Stat. 4296; Pub. L. 102-550, title VII, Sec. 702(b), Oct. 28, 1992, 
106 Stat. 3834; Pub. L. 105-276, title V, Sec. 599C(e)(1), (e)(2)(D)-
(F), Oct. 21, 1998, 112 Stat. 2661, 2663.)

                       References in Text

    Section 1487(a) of this title, referred to in subsecs. (a)(1)(A) and 
(b), was amended by Pub. L. 98-181, title V, Sec. 514(a)(1), Nov. 30, 
1983, 98 Stat. 1247, and, as so amended, does not contain a par. (1).
    The National Housing Act, referred to in subsec. (a)(1)(C) and (F), 
is act June 27, 1934, ch. 847, 48 Stat. 1246, as amended, which is 
classified principally to chapter 13 (Sec. 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.
    The United States Housing Act of 1937, referred to in subsec. 
(a)(1)(C) and (F), is act Sept. 1, 1937, ch. 896, as revised generally 
by Pub. L. 93-383, title II, Sec. 201(a), Aug. 22, 1974, 88 Stat. 653, 
and amended, which is classified generally to chapter 8 (Sec. 1437 et 
seq.) of this title. For complete classification of this Act to the 
Code, see Short Title note set out under section 1437 of this title and 
Tables.
    The effective date of this paragraph, referred to in subsec. 
(a)(3)(A) and (B), is six months after Nov. 30, 1983, or upon the 
earlier promulgation of implementing regulations by the Secretary. See 
section 517(f) of Pub. L. 98-181, set out as an Effective Date of 1983 
Amendment note below.


                               Amendments

    1998--Subsec. (a)(2)(B). Pub. L. 105-276, Sec. 599C(e)(2)(D), 
inserted ``or paragraph (5)'' after ``this paragraph'' and substituted 
``. The budget (and the income, in the case of a project assisted under 
this paragraph) shall be used to determine the amount of the assistance 
for each project.'' for ``which shall be used to determine the amount of 
assistance for each project.''
    Subsec. (a)(5). Pub. L. 105-276, Sec. 599C(e)(1), added par. (5).
    Subsec. (c)(2). Pub. L. 105-276, Sec. 599C(e)(2)(E), substituted 
``subsections (a)(2) and (a)(5)'' for ``subsection (a)(2)''.
    Subsec. (e). Pub. L. 105-276, Sec. 599C(e)(2)(F), inserted ``or any 
tenant in a project assisted under subsection (a)(5) of this section'' 
after ``recipient''.
    1992--Subsec. (a)(1)(D). Pub. L. 102-550 designated existing 
provisions as cl. (i) and added cl. (ii).
    1990--Subsec. (a)(2)(C). Pub. L. 101-625 inserted at end 
``Notwithstanding the preceding sentence, excess funds received from 
tenants in projects financed under section 1485 of this title during a 
fiscal year shall be available during the next succeeding fiscal year, 
together with funds provided under subparagraph (D), to the extent 
approved in appropriations Acts, to make assistance payments to reduce 
rent overburden on behalf of tenants of any such project whose rents 
exceed the levels referred to in subparagraph (A). In providing 
assistance to relieve rent overburden, the Secretary shall provide 
assistance with respect to very low-income and low-income families to 
reduce housing rentals to the levels specified in subparagraph (A).''
    1988--Subsec. (a)(1)(A). Pub. L. 100-242, Sec. 316(d)(1), struck out 
before period at end ``, except that such loans to provide housing and 
related facilities for persons or families of moderate income shall bear 
interest at the rate established by the Secretary of Housing and Urban 
Development under section 1709-1 of title 12 with respect to maximum 
interest rates established for mortgages insured under section 1709(b) 
of title 12 if the Secretary determines that the borrower can afford 
such higher interest charges.''
    Subsec. (a)(1)(B). Pub. L. 100-242, Sec. 309, inserted at end ``In 
the case of assistance provided under this subparagraph with respect to 
a loan under section 1472 of this title, the Secretary may not reduce, 
cancel, or refuse to renew the assistance due to an increase in the 
adjusted income of the borrower if the reduction, cancellation, or 
nonrenewal will cause the borrower to be unable to reasonably afford the 
resulting payments required under the loan.''
    Subsec. (a)(2)(A). Pub. L. 100-242, Sec. 316(d)(2), substituted 
comma for semicolon at end of cl. (ii).
    1984--Subsec. (d)(1). Pub. L. 98-479 in amending par. (1) generally, 
inserted provisions preceding subpar. (A), in subpar. (A) substituted 
provisions authorizing Secretary to make assistance available in 
existing projects for former provisions which required Secretary to 
first assure that expiring contracts are extended for those units 
occupied by persons or families of low income and that additional 
assistance is used when necessary to provide the full amount authorized 
pursuant to existing contracts, in subpar. (B) substituted ``any such 
authority remaining after carrying out subparagraph (A)'' for 
``Remaining funds'' and inserted provisions relating to persons who are 
not very low-income families or persons, and in subpar. (C) substituted 
provisions that remaining authority may be used to provide assistance 
under sections 1484 to 1486 of this title for former provisions which 
authorized the Secretary to use remaining funds for existing projects 
for very low-income families except that 5 per centum of the units 
assisted may be occupied by families and persons of low income.
    1983--Subsec. (a)(2)(A). Pub. L. 98-181, Sec. 517(c), substituted 
provisions setting forth factors applicable to determination of maximum 
amount, for provisions setting forth maximum amount as 25 per centum of 
income, and inserted provisions relating to limitations on increases of 
any rent or contribution of recipient.
    Pub. L. 98-181, Sec. 517(a), struck out provisions requiring 
assistance payments to be made on a unit basis and maximum amount of 
such payments, and provisions respecting priority for approval of 
projects under this paragraph.
    Subsec. (a)(2)(E). Pub. L. 98-181, Sec. 516, added subpar. (E).
    Subsec. (a)(3), (4). Pub. L. 98-181, Sec. 517(b), added pars. (3) 
and (4).
    Subsecs. (d), (e). Pub. L. 98-181, Sec. 517(e), added subsecs. (d) 
and (e).
    1981--Subsec. (a)(1)(B). Pub. L. 97-35, Sec. 352, substituted ``may 
provide'' for ``shall provide''.
    Subsec. (a)(2)(D). Pub. L. 97-35, Sec. 351(d), substituted 
``$398,000,000'' for ``$493,000,000'', and substituted provisions 
relating to fiscal year ending Sept. 30, 1982, for provisions relating 
to fiscal year ending Sept. 30, 1981.
    1980--Subsec. (a)(1)(B). Pub. L. 96-399, Sec. 505, substituted ``the 
Secretary shall provide'' for ``the Secretary may provide''.
    Subsec. (a)(1)(C). Pub. L. 96-399, Sec. 501(f), substituted 
provisions limiting the amount of additional assistance which may be 
approved to $100,000,000, for provisions limiting such amounts to 
$985,000,000 for contracts entered into with respect to fiscal year 1979 
and $500,000,000 for contracts entered into through Oct. 15, 1980, and 
substituted ``with respect to any fiscal year beginning on or after 
October 1, 1981'' for ``after October 15, 1980''.
    Pub. L. 96-372 substituted ``through October 15, 1980'' for ``with 
respect to fiscal year 1980'' and in last sentence ``after October 15, 
1980'' for ``with respect to any fiscal year after fiscal year 1980''.
    Subsec. (a)(2)(D). Pub. L. 96-399, Sec. 501(e), added subpar. (D).
    1979--Subsec. (a)(1)(A). Pub. L. 96-153, Sec. 502(a), inserted 
exception that loans to provide housing and related facilities for 
persons or families of moderate income shall bear interest at the rate 
established by the Secretary under certain provisions of title 12.
    Subsec. (a)(1)(C). Pub. L. 96-153, Sec. 501(c)(1), inserted 
provisions that the amount of such additional assistance which may be 
approved in appropriation acts may not exceed an aggregate amount of 
$985,000,000 for contracts entered into with respect to fiscal year 1979 
and an aggregate amount of $500,000,000 for contracts entered into with 
respect to fiscal year 1980 and that such additional assistance may not 
be so approved with respect to any fiscal year after fiscal year 1980.
    Subsec. (a)(1)(H). Pub. L. 96-153, Sec. 501(c)(3), repealed subpar. 
(H) which provided that the aggregate principal amount of loans made to 
borrowers receiving assistance pursuant to subpar. (C) shall not exceed 
$440,000,000.
    Subsec. (a)(2)(A). Pub. L. 96-153, Sec. 504, substituted 
``assistance payments to the owners of'' for ``assistance payments to 
public and private nonprofit owners of'', ``70 per centum'' for ``20 per 
centum'' in two places, ``by a loan under section 1484 of this title to 
a public or private nonprofit owner'' for ``by a loan under section 1484 
of this title'', the first time section 1484 of this title appeared in 
cl. (i), and inserted provisions that in approving projects for 
assistance under this paragraph, the Secretary shall give priority to 
projects in which assistance is provided to 40 per centum or fewer of 
the units contained in the project.
    Subsec. (c). Pub. L. 96-153, Sec. 501(c)(2), inserted authorization 
of appropriation to Rural Housing Insurance Fund of such sums as may be 
necessary to reimburse fund for amount of assistance payments under 
subsec. (a)(1)(C) of this section.
    1978--Subsec. (a)(1)(A) to (H). Pub. L. 95-557, Sec. 506(a), 
designated existing provisions as par. (1)(A), and in par. (1)(A) as so 
designated, struck out ``less not to exceed the difference between the 
adjusted rate determined by the Secretary of the Treasury and 1 per cent 
per annum: Provided, That such a loan may be made only when the 
Secretary determines that the needs of the applicant for necessary 
housing cannot be met with financial assistance from other sources 
including assistance under section 1715z or 1715z-1 of title 12: 
Provided further, That interest on loans under section 1472 or 1487(a) 
of this title to victims of natural disaster shall not exceed the rate 
which would be applicable to such loans under section 1472 of this title 
without regard to this section'', after ``one-eighth of 1 per centum,'' 
and added pars. (B) to (H).
    Subsec. (a)(2)(A). Pub. L. 95-557, Sec. 507, substituted ``public 
and private nonprofit owners'' for ``the owners'', inserted 
``congregate, or cooperative'' after ``rental'' and inserted ``by a loan 
under section 1484 of this title'' after ``section 1485 of this title 
for elderly or handicapped housing''.
    1977--Subsec. (a)(1). Pub. L. 95-128, Secs. 502(d), 507(a)(4), 
provided that any loan guaranteed under this subchapter shall bear 
interest at the rate as may be agreed upon by the borrower and the 
lender and provided loans for housing of handicapped persons or 
families.
    Subsec. (a)(2)(A). Pub. L. 95-128, Secs. 507(a)(5), 511, included 
handicapped housing in cl. (i) and substituted ``shall'' for ``may'' 
wherever appearing, except in cl. (i).
    1976--Subsec. (a)(1). Pub. L. 94-375 substituted ``rate determined 
by the Secretary of the Treasury upon the request of the Secretary'' for 
``rate determined annually by the Secretary of the Treasury''.
    1974--Subsec. (a)(1). Pub. L. 93-383, Secs. 514(a), 516(c)(1), 
redesignated existing subsec. (a) as (a)(1) and, as so redesignated, 
substituted ``loans under section 1485 of this title'' for ``and loans 
under section 1485 of this title'' and inserted provisions relating to 
loans under section 1490f of this title to provide condominium housing 
for persons and families of low or moderate income.
    Subsec. (a)(2). Pub. L. 93-383, Sec. 514(a), added par. (2).
    Subsec. (b). Pub. L. 93-383, Sec. 516(c)(2), inserted references to 
sections 1490f(a) and 1490f(c) of this title.
    Subsec. (c). Pub. L. 93-383, Secs. 514(b), 516(c)(3), reorganized 
structure of subsec. (c) by designating existing provisions as cl. (1) 
and, as so designated, substituted reference to subsec. (a)(1) of this 
section for reference to subsec. (a) of this section, added cl. (2), and 
made former second clause into second sentence, and, as so amended, 
inserted reference to section 1490f of this title and struck out 
``excess'' after ``unreimbursed''.


                    Effective Date of 1983 Amendment

    Section 517(f) of Pub. L. 98-181 provided that: ``The amendments 
made by this section [amending this section and section 1490j of this 
title] shall take effect six months after the date of enactment of this 
Act [Nov. 30, 1983], or upon the earlier promulgation of regulations 
implementing this section by the Secretary.''


                    Effective Date of 1981 Amendment

    Amendment by Pub. L. 97-35 effective Oct. 1, 1981, see section 371 
of Pub. L. 97-35, set out as an Effective Date note under section 3701 
of Title 12, Banks and Banking.

                  Section Referred to in Other Sections

    This section is referred to in sections 1436a, 1472, 1479, 1480, 
1483, 1485, 1487, 1490c, 1490j, 1490l, 1490p-2 of this title; title 7 
section 2204f.
