
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC1490c]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
       CHAPTER 8A--SLUM CLEARANCE, URBAN RENEWAL, AND FARM HOUSING
 
                      SUBCHAPTER III--FARM HOUSING
 
Sec. 1490c. Mutual and self-help housing


(a) Purpose

    The purposes of this section are (1) to make financial assistance 
available on reasonable terms and conditions in rural areas and small 
towns to needy low-income individuals and their families who, with the 
benefit of technical assistance and overall guidance and supervision, 
participate in approved programs of mutual or self-help housing by 
acquiring and developing necessary land, acquiring building materials, 
providing their own labor, and working cooperatively with others for the 
provision of decent, safe, and sanitary dwellings for themselves, their 
families, and others in the area or town involved, and (2) to facilitate 
the efforts of both public and private nonprofit organizations providing 
assistance to such individuals to contribute their technical and 
supervisory skills toward more effective and comprehensive programs of 
mutual or self-help housing in rural areas and small towns wherever 
necessary.

(b) Contract authority; establishment of Self-Help Housing Land 
        Development Fund; authorization to make loans; conditions of 
        loan

    In order to carry out the purposes of this section, the Secretary of 
Agriculture (in this section referred to as the ``Secretary'') is 
authorized--
        (1)(A) to make grants to, or contract with, public or private 
    nonprofit corporations, agencies, institutions, organizations, 
    Indian tribes, and other associations approved by him, to pay part 
    or all of the costs of developing, conducting, administering, or 
    coordinating effective and comprehensive programs of technical and 
    supervisory assistance which will aid needy low-income individuals 
    and their families in carrying out mutual or self-help housing 
    efforts, including the repair of units financed under section 1472 
    of this title that are being held in inventory; and
        (B) to establish the Self-Help Housing Land Development Fund, 
    referred to herein as the Self-Help Fund, to be used by the 
    Secretary as a revolving fund for making loans, on such terms and 
    conditions and in such amounts as he deems necessary, to public or 
    private nonprofit organizations and to Indian tribes for the 
    acquisition and development of land as building sites to be 
    subdivided and sold to families, nonprofit organizations, and 
    cooperatives eligible for assistance under section 1715z or 1715z-1 
    of title 12 or section 1490a of this title. Such a loan, with 
    interest at a rate not to exceed 3 percent per annum, shall be 
    repaid within a period not to exceed two years from the making of 
    the loan, or within such additional period as may be authorized by 
    the Secretary in any case as being necessary to carry out the 
    purposes hereof: Provided, That the Secretary may advance funds 
    under this paragraph to organizations receiving assistance under 
    clause (A) to enable them to establish revolving accounts for the 
    purchase of land options and any such advances may bear interest at 
    a rate determined by the Secretary and shall be repaid to the 
    Secretary at the expiration of the period for which the grant to the 
    organization involved was made;
        (2) to make grants to, or contract with, national or regional 
    private nonprofit corporations to provide training and technical 
    assistance to public or private nonprofit corporations, agencies, 
    institutions, organizations, and other associations, including 
    Indian tribes, eligible to receive assistance under this section in 
    order to expand the use of authorities contained in this section and 
    to improve performance; and
        (3) to make loans, on such terms and conditions and in such 
    amounts as he deems necessary, to needy low-income individuals 
    participating in programs of mutual or self-help housing approved by 
    him, for the acquisition and development of land and for the 
    purchase of such other building materials as may be necessary in 
    order to enable them, by providing substantially all of their own 
    labor, and by cooperating with others participating in such 
    programs, to carry out to completion the construction of decent, 
    safe, and sanitary dwellings for such individuals and their 
    families, subject to the following limitations:
            (A) there is reasonable assurance of repayment of the loan;
            (B) the amount of the loan, together with other funds which 
        may be available, is adequate to achieve the purpose for which 
        the loan is made;
            (C) the credit assistance is not otherwise available on like 
        terms or conditions from private sources or through other 
        Federal, State, or local programs;
            (D) the loan bears interest at a rate not to exceed 3 per 
        centum per annum on the unpaid balance of principal, plus such 
        additional charge, if any, toward covering other costs of the 
        loan program as the Secretary may determine to be consistent 
        with its purposes; and
            (E) the loan is repayable within not more than thirty-three 
        years.

(c) Considerations for financial assistance

    In determining whether to extend financial assistance under 
paragraph (1) or (2) of subsection (b) of this section, the Secretary 
shall take into consideration, among other factors, the suitability of 
the area within which construction will be carried out to the type of 
dwelling which can be provided under mutual or self-help housing 
programs, the extent to which the assistance will facilitate the 
provision of more decent, safe, and sanitary housing conditions than 
presently exist in the area, the extent to which the assistance will be 
utilized efficiently and expeditiously, the extent to which the 
assistance will effect an increase in the standard of living of low-
income individuals participating in the mutual or self-help housing 
program, and whether the assistance will fulfill a need in the area 
which is not otherwise being met through other programs, including those 
carried out by other Federal, State, or local agencies.

(d) ``Construction'' defined

    As used in this section, the term ``construction'' includes the 
erection of new dwellings, and the rehabilitation, alteration, 
conversion, or improvement of existing structures.

(e) Establishment of appropriate criteria and procedures for determining 
        eligibility of applicants

    The Secretary is authorized to establish appropriate criteria and 
procedures in order to determine the eligibility of applicants for the 
financial assistance provided under this section, including criteria and 
procedures with respect to the periodic review of any construction 
carried out with such financial assistance.

(f) Repealed. Pub. L. 102-550, title VII, Sec. 710(2), Oct. 28, 1992, 
        106 Stat. 3840

(g) Deposit in Self-Help Fund; availability of amounts; assets

    Amounts appropriated under this subsection, together with principal 
collections from loans made under appropriations in any previous fiscal 
years, shall be deposited in the Self-Help Housing Land Development 
Fund, which shall be available, to the extent approved in appropriation 
Acts, as a revolving fund for making loans under subsection (b)(1)(B) of 
this section; except that not more than $5,000,000 may be made available 
during fiscal year 1985. Instruments and property acquired by the 
Secretary in or as a result of making such loans shall be assets of the 
Self-Help Housing Land Development Fund.

(h) Rules and regulations

    The Secretary shall issue rules and regulations for the orderly 
processing and review of applications under this section and rules and 
regulations protecting the rights of grantees under this section in the 
event he determines to end grant assistance prior to the termination 
date of any grant agreement.

(July 15, 1949, ch. 338, title V, Sec. 523, as added Pub. L. 90-448, 
title X, Sec. 1005, Aug. 1, 1968, 82 Stat. 553; amended Pub. L. 93-117, 
Sec. 13(d), Oct. 2, 1973, 87 Stat. 423; Pub. L. 93-383, title V, 
Sec. 512, Aug. 22, 1974, 88 Stat. 695; Pub. L. 95-60, Sec. 4(d), June 
30, 1977, 91 Stat. 258; Pub. L. 95-80, Sec. 4(d), July 31, 1977, 91 
Stat. 340; Pub. L. 95-128, title V, Sec. 501(d), Oct. 12, 1977, 91 Stat. 
1139; Pub. L. 95-406, Sec. 7(d), Sept. 30, 1978, 92 Stat. 881; Pub. L. 
95-557, title V, Sec. 501(g), (h), Oct. 31, 1978, 92 Stat. 2111; Pub. L. 
96-71, Sec. 5(d), Sept. 28, 1979, 93 Stat. 502; Pub. L. 96-105, 
Sec. 5(d), Nov. 8, 1979, 93 Stat. 795; Pub. L. 96-153, title V, 
Secs. 501(d), (e), 505, Dec. 21, 1979, 93 Stat. 1133, 1135; Pub. L. 96-
372, Sec. 6(e), Oct. 3, 1980, 94 Stat. 1365; Pub. L. 96-399, title V, 
Secs. 501(d), 507(e), Oct. 8, 1980, 94 Stat. 1668, 1670; Pub. L. 97-35, 
title III, Sec. 351(e), Aug. 13, 1981, 95 Stat. 421; Pub. L. 97-289, 
Sec. 3(c), Oct. 6, 1982, 96 Stat. 1231; Pub. L. 98-35, Sec. 3(c), May 
26, 1983, 97 Stat. 198; Pub. L. 98-109, Sec. 4(c), Oct. 1, 1983, 97 
Stat. 746; Pub. L. 98-181, title V, Sec. 511(d), (e), Nov. 30, 1983, 97 
Stat. 1244; Pub. L. 98-479, title II, Sec. 204(c)(2), Oct. 17, 1984, 98 
Stat. 2233; Pub. L. 99-120, Sec. 3(c), Oct. 8, 1985, 99 Stat. 503; Pub. 
L. 99-156, Sec. 3(c), Nov. 15, 1985, 99 Stat. 816; Pub. L. 99-219, 
Sec. 3(c), Dec. 26, 1985, 99 Stat. 1731; Pub. L. 99-267, Sec. 3(c), Mar. 
27, 1986, 100 Stat. 74; Pub. L. 99-272, title III, Sec. 3009(c), Apr. 7, 
1986, 100 Stat. 106; Pub. L. 99-289, Sec. 1(b), May 2, 1986, 100 Stat. 
412; Pub. L. 99-345, Sec. 1, June 24, 1986, 100 Stat. 673; Pub. L. 99-
430, Sept. 30, 1986, 100 Stat. 986; Pub. L. 100-122, Sec. 1, Sept. 30, 
1987, 101 Stat. 793; Pub. L. 100-154, Nov. 5, 1987, 101 Stat. 890; Pub. 
L. 100-170, Nov. 17, 1987, 101 Stat. 914; Pub. L. 100-179, Dec. 3, 1987, 
101 Stat. 1018; Pub. L. 100-200, Dec. 21, 1987, 101 Stat. 1327; Pub. L. 
100-242, title III, Sec. 301(f), Feb. 5, 1988, 101 Stat. 1893; Pub. L. 
101-137, Sec. 7(c), Nov. 3, 1989, 103 Stat. 826; Pub. L. 101-625, title 
VII, Sec. 701(f), Nov. 28, 1990, 104 Stat. 4282; Pub. L. 102-142, title 
VII, Sec. 743(b), Oct. 28, 1991, 105 Stat. 915; Pub. L. 102-550, title 
VII, Sec. 710, Oct. 28, 1992, 106 Stat. 3840.)


                               Amendments

    1992--Subsec. (b)(1)(A). Pub. L. 102-550, Sec. 710(1), inserted ``, 
including the repair of units financed under section 1472 of this title 
that are being held in inventory'' after ``efforts''.
    Subsec. (f). Pub. L. 102-550, Sec. 710(2), struck out subsec. (f) 
which read as follows: ``No grant or loan may be made or contract 
entered into under the authority of this section after September 30, 
1992, except pursuant to a commitment or other obligation entered into 
pursuant to this section before that date.''
    1991--Subsec. (f). Pub. L. 102-142 substituted ``1992'' for 
``1991''.
    1990--Subsec. (f). Pub. L. 101-625 substituted ``1991'' for 
``1990''.
    1989--Subsec. (f). Pub. L. 101-137 substituted ``1990'' for 
``1989''.
    1988--Subsec. (f). Pub. L. 100-242 substituted ``September 30, 
1989'' for ``March 15, 1988''.
    1987--Subsec. (f). Pub. L. 100-200 substituted ``March 15, 1988'' 
for ``December 16, 1987''.
    Pub. L. 100-179 substituted ``December 16, 1987'' for ``December 2, 
1987''.
    Pub. L. 100-170 substituted ``December 2, 1987'' for ``November 15, 
1987''.
    Pub. L. 100-154 substituted ``November 15, 1987'' for ``October 31, 
1987''.
    Pub. L. 100-122 substituted ``October 31, 1987'' for ``September 30, 
1987''.
    1986--Subsec. (f). Pub. L. 99-430 substituted ``1987'' for ``1986''.
    Pub. L. 99-345 substituted ``September 30, 1986'' for ``June 6, 
1986''.
    Pub. L. 99-289 substituted ``June 6, 1986'' for ``April 30, 1986''.
    Pub. L. 99-272 directed amendment identical to Pub. L. 99-219, 
substituting ``March 17, 1986'' for ``December 15, 1985''.
    Pub. L. 99-267 substituted ``April 30, 1986'' for ``March 17, 
1986''.
    1985--Subsec. (f). Pub. L. 99-219 substituted ``March 17, 1986'' for 
``December 15, 1985''.
    Pub. L. 99-156 substituted ``December 15, 1985'' for ``November 14, 
1985''.
    Pub. L. 99-120 substituted ``November 14, 1985'' for ``September 30, 
1985''.
    1984--Subsec. (g). Pub. L. 98-479 inserted ``Housing'' before 
``Land'' after ``Self-Help'' in last sentence.
    1983--Subsec. (f). Pub. L. 98-181, Sec. 511(d), substituted 
``September 30, 1985'' for ``November 30, 1983'', and struck out first 
sentence which authorized not to exceed $5,000,000 to carry out this 
section for fiscal year 1983.
    Pub. L. 98-109 substituted ``November 30, 1983'' for ``September 30, 
1983'' the second time it appeared.
    Pub. L. 98-35 substituted ``September 30, 1983'' for ``May 20, 
1983'' in two places.
    Subsec. (g). Pub. L. 98-181, Sec. 511(e), substituted ``1985'' for 
``1982'' and struck out first sentence which authorized not to exceed 
$3,000,000 to carry out subsec. (b)(1)(B) for fiscal year 1982.
    1982--Subsec. (f). Pub. L. 97-289 substituted ``May 20, 1983'' for 
``September 30, 1982'' wherever appearing.
    1981--Subsec. (f). Pub. L. 97-35, Sec. 351(e)(1), substituted 
``1982'' for ``1981'' in two places.
    Subsec. (g). Pub. L. 97-35, Sec. 351(e)(2)-(4), inserted provisions 
relating to availability in appropriation Acts, and substituted 
provisions relating to authorization of appropriations for fiscal year 
ending Sept. 30, 1982, for provisions authorizing appropriations for 
fiscal year ending Sept. 30, 1981.
    1980--Subsec. (b). Pub. L. 96-399, Sec. 507(e), inserted reference 
to Indian tribes in subpars. (1)(A) and (B), and in par. (2).
    Subsec. (f). Pub. L. 96-399, Sec. 501(d)(1), substituted ``September 
30, 1981'' for ``October 15, 1980'' wherever appearing.
    Pub. L. 96-372 substituted ``October 15, 1980'' for ``September 30, 
1980'' wherever appearing.
    Subsec. (g). Pub. L. 96-399, Sec. 501(d)(2), substituted provisions 
authorizing appropriations not to exceed $2,500,000 for fiscal 1981, 
such amount together with principal collections from loans under 
appropriations in prior years to be deposited in the Self-Help Housing 
Land Development Fund, to be available as a revolving fund for loans 
under subsec. (b)(1)(B) of this section for provisions authorizing 
appropriations not to exceed $1,000,000, $2,000,000, $3,000,000 and 
$1,000,000 for fiscal years ending June 30, 1969, June 30, 1970, Sept. 
30, 1979, and Sept. 30, 1980, respectively, provisions allowing 
appropriation of authorized funds in succeeding years, to be deposited 
in the Self-Help Fund to be available without fiscal year limitation, 
and provision for deposit in such Fund of sums received from repayment 
of such loans.
    1979--Subsec. (b). Pub. L. 96-153, Sec. 505, redesignated existing 
par. (2) as (3) and added par. (2).
    Subsec. (f). Pub. L. 96-153, Sec. 501(d), substituted authorization 
of appropriation of $5,000,000 for fiscal year ending Sept. 30, 1980, 
for provisions containing authorization of appropriation for fiscal 
years commencing June 30, 1968 to Oct. 1, 1978, and substituted 
``September 30, 1980'' for ``November 30, 1979''.
    Pub. L. 96-105 substituted ``December 1, 1979'' and ``November 30, 
1979'' for ``November 1, 1979'' and ``October 31, 1979'', respectively.
    Pub. L. 96-71 substituted ``November 1, 1979'' and ``October 31, 
1979'' for ``October 1, 1979'' and ``September 30, 1979'', respectively.
    Subsec. (g). Pub. L. 96-153, Sec. 501(e), inserted authorization of 
appropriation of $1,000,000 for fiscal year ending September 30, 1980.
    1978--Subsec. (f). Pub. L. 95-557, Sec. 501(g), substituted 
``October 1, 1979'' for ``November 1, 1978'', ``September 30, 1979'' for 
``October 31, 1978'', and ``$16,500,000'' for ``$10,000,000''.
    Pub. L. 95-406 substituted ``November 1, 1978'' for ``October 1, 
1978'' and ``October 31, 1978'' for ``September 30, 1978''.
    Subsec. (g). Pub. L. 95-557, Sec. 501(h), inserted ``and not to 
exceed $3,000,000 for the fiscal year ending September 30, 1979'', after 
``June 30, 1970''.
    1977--Subsec. (f). Pub. L. 95-128 substituted ``1978'' for ``1977'' 
wherever appearing.
    Pub. L. 95-80 substituted ``October 1, 1977'' for ``August 1, 1977'' 
and ``September 30, 1977'' for ``July 31, 1977''.
    Pub. L. 95-60 substituted ``August 1, 1977'' for ``July 1, 1977'' 
and ``July 31, 1977'' for ``June 30, 1977''.
    1974--Subsec. (b)(1). Pub. L. 93-383, Sec. 512(a), inserted proviso 
relating to advance of funds by Secretary at end of cl. (B).
    Subsec. (f). Pub. L. 93-383, Sec. 512(b), substituted ``1977'' for 
``1974'' wherever appearing and ``$10,000,000'' for ``$5,000,000''.
    Subsec. (h). Pub. L. 93-383, Sec. 512(c), added subsec. (h).
    1973--Subsec. (f). Pub. L. 93-117 substituted ``1974'' for ``1973'' 
wherever appearing.


                    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 1483, 12805 of this title; 
title 7 section 2204f.
