
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: 42USC5308]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                    CHAPTER 69--COMMUNITY DEVELOPMENT
 
Sec. 5308. Guarantee and commitment to guarantee loans for 
        acquisition of property
        

(a) Authority of Secretary; issuance of obligations by eligible public 
        entities or designated public agencies; form, denomination, 
        maturity, and conditions of notes or other obligations; 
        percentage allocation requirements

    The Secretary is authorized, upon such terms and conditions as the 
Secretary may prescribe, to guarantee and make commitments to guarantee, 
only to such extent or in such amounts as provided in appropriation 
Acts, the notes or other obligations issued by eligible public entities, 
or by public agencies designated by such eligible public entities, for 
the purposes of financing (1) acquisition of real property or the 
rehabilitation of real property owned by the eligible public entity 
(including such related expenses as the Secretary may permit by 
regulation); (2) housing rehabilitation; (3) economic development 
activities permitted under paragraphs (14), (15), and (17) of section 
5305(a) of this title; (4) construction of housing by nonprofit 
organizations for homeownership under section 1437o(d) \1\ of this title 
or title VI of the Housing and Community Development Act of 1987; (5) 
the acquisition, construction, reconstruction, or installation of public 
facilities (except for buildings for the general conduct of government); 
or (6) in the case of colonias (as such term is defined in section 916 
of the Cranston-Gonzalez National Affordable Housing Act), public works 
and site or other improvements. A guarantee under this section may be 
used to assist a grantee in obtaining financing only if the grantee has 
made efforts to obtain such financing without the use of such guarantee 
and cannot complete such financing consistent with the timely execution 
of the program plans without such guarantee. Notes or other obligations 
guaranteed pursuant to this section shall be in such form and 
denominations, have such maturities, and be subject to such conditions 
as may be prescribed by regulations issued by the Secretary. The 
Secretary may not deny a guarantee under this section on the basis of 
the proposed repayment period for the note or other obligation, unless 
the period is more than 20 years or the Secretary determines that the 
period causes the guarantee to constitute an unacceptable financial 
risk. Notwithstanding any other provision of law and subject only to the 
absence of qualified applicants or proposed activities and to the 
authority provided in this section, to the extent approved or provided 
in appropriation Acts, the Secretary shall enter into commitments to 
guarantee notes and obligations under this section with an aggregate 
principal amount of $2,000,000,000 for fiscal year 1993 and 
$2,000,000,000 for fiscal year 1994. Of the amount approved in any 
appropriation Act for guarantees under this section in any fiscal year, 
the Secretary shall allocate 70 percent for guarantees for metropolitan 
cities, urban counties, and Indian tribes and 30 percent for guarantees 
for units of general local government in nonentitlement areas. The 
Secretary may waive the percentage requirements of the preceding 
sentence in any fiscal year only to the extent that there is an absence 
of qualified applicants or proposed activities from metropolitan cities, 
urban counties, and Indian tribes or units of general local government 
in nonentitlement areas.
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    \1\ See References in Text note below.
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(b) Prerequisites

    No guarantee or commitment to guarantee shall be made with respect 
to any note or other obligation if the issuer's total outstanding notes 
or obligations guaranteed under this section (excluding any amount 
defeased under the contract entered into under subsection (d)(1)(A) of 
this section) would thereby exceed an amount equal to 5 times the amount 
of the grant approval for the issuer pursuant to section 5306 or 5307 of 
this title.

(c) Payment of principal, interest and costs

    Notwithstanding any other provision of this chapter, grants 
allocated to an issuer pursuant to this chapter (including program 
income derived therefrom) are authorized for use in the payment of 
principal and interest due (including such servicing, underwriting, or 
other costs as may be specified in regulations of the Secretary) on the 
notes or other obligations guaranteed pursuant to this section.

(d) Repayment contract; security; pledge by State

    (1) To assure the repayment of notes or other obligations and 
charges incurred under this section and as a condition for receiving 
such guarantees, the Secretary shall require the issuer to--
        (A) enter into a contract, in a form acceptable to the 
    Secretary, for repayment of notes or other obligations guaranteed 
    hereunder;
        (B) pledge any grant for which the issuer may become eligible 
    under this chapter; and
        (C) furnish, at the discretion of the Secretary, such other 
    security as may be deemed appropriate by the Secretary in making 
    such guarantees, including increments in local tax receipts 
    generated by the activities assisted under this chapter or 
    dispositions proceeds from the sale of land or rehabilitated 
    property.

    (2) To assist in assuring the repayment of notes or other 
obligations and charges incurred under this section, a State shall 
pledge any grant for which the State may become eligible under this 
chapter as security for notes or other obligations and charges issued 
under this section by any unit of general local government in a 
nonentitlement area in the State.

(e) Pledged grants for repayments

    The Secretary is authorized, notwithstanding any other provision of 
this chapter, to apply grants pledged pursuant to paragraphs (1)(B) and 
(2) of subsection (d) of this section to any repayments due the United 
States as a result of such guarantees.

(f) Full faith and credit of United States pledged for payment; 
        conclusiveness and validity of guarantee

    The full faith and credit of the United States is pledged to the 
payment of all guarantees made under this section. Any such guarantee 
made by the Secretary shall be conclusive evidence of the eligibility of 
the obligations for such guarantee with respect to principal and 
interest, and the validity of any such guarantee so made shall be 
incontestable in the hands of a holder of the guaranteed obligations.

(g) Issuance of obligations by Secretary to Secretary of the Treasury to 
        satisfy authorized guarantee obligations; establishment of 
        maturities and rates of interest and purchase of obligations by 
        Secretary of the Treasury

    The Secretary may issue obligations to the Secretary of the Treasury 
in an amount outstanding at any one time sufficient to enable the 
Secretary to carry out his obligations under guarantees authorized by 
this section. The obligations issued under this subsection shall have 
such maturities and bear such rate or rates of interest as shall be 
determined by the Secretary of the Treasury. The Secretary of the 
Treasury is authorized and directed to purchase any obligations of the 
Secretary issued under this section, and for such purposes is authorized 
to use as a public debt transaction the proceeds from the sale of any 
securities issued under chapter 31 of title 31, and the purposes for 
which such securities may be issued under such chapter are extended to 
include the purchases of the Secretary's obligations hereunder.

(h) Federal taxation of guaranteed obligations; grants to borrowing 
        entity or agency of taxable obligations for net interest costs, 
        etc.; limitation on amount of grant; assistance to issuer in 
        hardship cases

    Obligations guaranteed under this section shall be subject to 
Federal taxation as provided in subsection (j) of this section. The 
Secretary is authorized to make, and to contract to make, grants, in 
such amounts as may be approved in appropriations Acts, to or on behalf 
of the issuing eligible public entity or public agency to cover not to 
exceed 30 per centum of the net interest cost (including such servicing, 
underwriting, or other costs as may be specified in regulations of the 
Secretary) to the borrowing entity or agency of such obligations. The 
Secretary may also, to the extent approved in appropriation Acts, assist 
the issuer of a note or other obligation guaranteed under this section 
in the payment of all or a portion of the principal and interest amount 
due under the note or other obligation, if the Secretary determines that 
the issuer is unable to pay the amount because of circumstances of 
extreme hardship beyond the control of the issuer.

(i) Omitted

(j) Inclusion within gross income for purpose of chapter 1 of title 26 
        of interest paid on taxable obligations

    With respect to any obligation issued by a \2\ eligible public 
entity or designated agency which is guaranteed pursuant to this 
section, the interest paid on such obligation shall be included in gross 
income for the purpose of chapter 1 of title 26.
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    \2\ So in original. Probably should be ``an''.
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(k) Outstanding obligations; limitation; monitoring use of guarantees 
        under this section

    (1) The total amount of outstanding obligations guaranteed on a 
cumulative basis by the Secretary pursuant to subsection (a) of this 
section shall not at any time exceed $4,500,000,000 or such higher 
amount as may be authorized to be appropriated for sections 5306 and 
5307 of this title for any fiscal year.
    (2) The Secretary shall monitor the use of guarantees under this 
section by eligible public entities. If the Secretary finds that 50 
percent of the aggregate guarantee authority has been committed, the 
Secretary may--
        (A) impose limitations on the amount of guarantees any one 
    entity may receive in any fiscal year of $35,000,000 for units of 
    general local government receiving grants under section 5306(b) of 
    this title and $7,000,000 for units of general local government 
    receiving grants under section 5306(d) of this title; or
        (B) request the enactment of legislation increasing the 
    aggregate limitation on guarantees under this section.

(l) Purchase of guaranteed obligations by Federal Financing Bank

    Notes or other obligations guaranteed under this section may not be 
purchased by the Federal Financing Bank.

(m) Limitation on imposition of fee or charge

    No fee or charge may be imposed by the Secretary or any other 
Federal agency on or with respect to a guarantee made by the Secretary 
under this section after February 5, 1988.

(n) State assistance in submission of applications

    Any State that has elected under section 5306(d)(2)(A) of this title 
to distribute funds to units of general local government in 
nonentitlement areas may assist such units in the submission of 
applications for guarantees under this section.

(o) ``Eligible public entity'' defined

    For purposes of this section, the term ``eligible public entity'' 
means any unit of general local government, including units of general 
local government in nonentitlement areas.

(p) Training and information activities relating to home guarantee 
        program

    (1) The Secretary, in cooperation with eligible public entities, 
shall carry out training and information activities with respect to the 
guarantee program under this section. Such activities shall commence not 
later than 1 year after November 28, 1990.\3\
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    \3\ See Codification note below.
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    (2) The Secretary may use amounts set aside under section 5307 of 
this title to carry out this subsection.

(q) Economic development grants

                          (1) Authorization

        The Secretary may make grants in connection with notes or other 
    obligations guaranteed under this section to eligible public 
    entities for the purpose of enhancing the security of loans 
    guaranteed under this section or improving the viability of projects 
    financed with loans guaranteed under this section.

                       (2) Eligible activities

        Assistance under this subsection may be used only for the 
    purposes of and in conjunction with projects and activities assisted 
    under subsection (a) of this section.

                          (3) Applications

        Applications for assistance under this subsection may be 
    submitted only by eligible public entities, and shall be in the form 
    and in accordance with the procedures established by the Secretary. 
    Eligible public entities may apply for grants only in conjunction 
    with requests for guarantees under subsection (a) of this section.

                       (4) Selection criteria

        The Secretary shall establish criteria for awarding assistance 
    under this subsection. Such criteria shall include--
            (A) the extent of need for such assistance;
            (B) the level of distress in the community to be served and 
        in the jurisdiction applying for assistance;
            (C) the quality of the plan proposed and the capacity or 
        potential capacity of the applicant to successfully carry out 
        the plan; and
            (D) such other factors as the Secretary determines to be 
        appropriate.

(r) Guarantee of obligations backed by loans

                            (1) Authority

        The Secretary may, upon such terms and conditions as the 
    Secretary considers appropriate, guarantee the timely payment of the 
    principal of and interest on such trust certificates or other 
    obligations as may--
            (A) be offered by the Secretary or by any other offeror 
        approved for purposes of this subsection by the Secretary; and
            (B) be based on and backed by a trust or pool composed of 
        notes or other obligations guaranteed or eligible for guarantee 
        by the Secretary under this section.

                      (2) Full faith and credit

        To the same extent as provided in subsection (f) of this 
    section, the full faith and credit of the United States is pledged 
    to the payment of all amounts that may be required to be paid under 
    any guarantee made by the Secretary under this subsection.

                           (3) Subrogation

        If the Secretary pays a claim under a guarantee made under this 
    section, the Secretary shall be subrogated for all the rights of the 
    holder of the guaranteed certificate or obligation with respect to 
    such certificate or obligation.

                         (4) Effect of laws

        No State or local law, and no Federal law, shall preclude or 
    limit the exercise by the Secretary of--
            (A) the power to contract with respect to public offerings 
        and other sales of notes, trust certificates, and other 
        obligations guaranteed under this section upon such terms and 
        conditions as the Secretary deems appropriate;
            (B) the right to enforce any such contract by any means 
        deemed appropriate by the Secretary; and
            (C) any ownership rights of the Secretary, as applicable, in 
        notes, certificates, or other obligations guaranteed under this 
        section, or constituting the trust or pool against which trust 
        certificates, or other obligations guaranteed under this 
        section, are offered.

(Pub. L. 93-383, title I, Sec. 108, Aug. 22, 1974, 88 Stat. 647; Pub. L. 
95-128, title I, Sec. 108, Oct. 12, 1977, 91 Stat. 1123; Pub. L. 96-399, 
title I, Sec. 108, Oct. 8, 1980, 94 Stat. 1619; Pub. L. 97-35, title 
III, Sec. 309(i), Aug. 13, 1981, 95 Stat. 397; Pub. L. 98-181, title I, 
Sec. 108, Nov. 30, 1983, 97 Stat. 1168; Pub. L. 98-479, title II, 
Secs. 203(l)(2), 204(k)(1), Oct. 17, 1984, 98 Stat. 2231, 2233; Pub. L. 
99-272, title III, Sec. 3002(a), Apr. 7, 1986, 100 Stat. 102; Pub. L. 
100-242, title V, Sec. 514, Feb. 5, 1988, 101 Stat. 1930; Pub. L. 101-
625, title IX, Secs. 901(b), 910(b)-(g), Nov. 28, 1990, 104 Stat. 4385, 
4389-4391; Pub. L. 102-550, title VIII, Sec. 801(b), Oct. 28, 1992, 106 
Stat. 3843; Pub. L. 103-233, title II, Secs. 231, 232(a)(1), 233, Apr. 
11, 1994, 108 Stat. 366, 368; Pub. L. 104-120, Sec. 3(b), Mar. 28, 1996, 
110 Stat. 835.)

                       References in Text

    Section 1437o of this title, referred to in subsec. (a)(4), was 
repealed by Pub. L. 101-625, title II, Sec. 289(b), Nov. 28, 1990, 104 
Stat. 4128.
    Title VI of the Housing Community Development Act of 1987, referred 
to in subsec. (a)(4), is title VI of Pub. L. 100-242, Feb. 5, 1988, 101 
Stat. 1951, which was set out as a note under section 1715l of Title 12, 
Banks and Banking, and was repealed by Pub. L. 101-625, title II, 
Sec. 289(b), Nov. 28, 1990, 104 Stat. 4128.
    Section 916 of the Cranston-Gonzalez National Affordable Housing 
Act, referred to in subsec. (a)(6), is section 916 of Pub. L. 101-625, 
as amended, which is set out as a note under section 5306 of this title.

                          Codification

    Subsec. (i) of this section amended section 711(22) of former Title 
31, Money and Finance. Subsec. (i) was originally enacted as subsec. (f) 
of this section, and was redesignated as subsec. (i) by Pub. L. 95-128, 
Sec. 108(2).
    November 28, 1990, referred to in subsec. (p)(1), was in the 
original ``the date of the enactment of the Housing and Community 
Development Act of 1990'', and was translated as meaning the date of 
enactment of the Cranston-Gonzalez National Affordable Housing Act, Pub. 
L. 101-625, which enacted subsec. (p) of this section, to reflect the 
probable intent of Congress and because no ``Housing and Community 
Development Act of 1990'' has been enacted.


                               Amendments

    1996--Subsec. (k)(1). Pub. L. 104-120 substituted ``$4,500,000,000'' 
for ``$3,500,000,000''.
    1994--Subsec. (a). Pub. L. 103-233, Sec. 231, added cls. (5) and 
(6).
    Subsec. (q). Pub. L. 103-233, Sec. 232(a)(1), added subsec. (q).
    Subsec. (r). Pub. L. 103-233, Sec. 233, added subsec. (r).
    1992--Subsec. (a). Pub. L. 102-550 amended fifth sentence generally. 
Prior to amendment, fifth sentence read as follows: ``Notwithstanding 
any other provision of law and subject only to the absence of qualified 
applicants or proposed activities and to the authority provided in this 
section, to the extent approved or provided in appropriation Acts, the 
Secretary shall enter into commitments to guarantee notes and 
obligations under this section with an aggregate principal amount of 
$300,000,000 during fiscal year 1991 and $300,000,000 during fiscal year 
1992.''
    1990--Subsec. (a). Pub. L. 101-625, Sec. 910(e)(1), inserted at end 
``Of the amount approved in any appropriation Act for guarantees under 
this section in any fiscal year, the Secretary shall allocate 70 percent 
for guarantees for metropolitan cities, urban counties, and Indian 
tribes and 30 percent for guarantees for units of general local 
government in nonentitlement areas. The Secretary may waive the 
percentage requirements of the preceding sentence in any fiscal year 
only to the extent that there is an absence of qualified applicants or 
proposed activities from metropolitan cities, urban counties, and Indian 
tribes or units of general local government in nonentitlement areas.''
    Pub. L. 101-625, Sec. 910(c), inserted ``The Secretary may not deny 
a guarantee under this section on the basis of the proposed repayment 
period for the note or other obligation, unless the period is more than 
20 years or the Secretary determines that the period causes the 
guarantee to constitute an unacceptable financial risk.''
    Pub. L. 101-625, Sec. 910(b)(2), substituted a semicolon for ``; 
or'' before ``(3)'' and added cl. (4).
    Pub. L. 101-625, Sec. 910(b)(1)(A), substituted ``eligible public 
entity'' and ``eligible public entities'' for ``unit of general local 
government'' and ``units of general local government'', respectively, 
wherever appearing.
    Pub. L. 101-625, Sec. 901(b), amended last sentence generally. Prior 
to amendment, last sentence read as follows: ``Notwithstanding any other 
provision of law and subject only to the absence of qualified applicants 
or proposed activities, to the authority provided in this section, and 
to any funding limitation approved in appropriation Acts, the Secretary 
shall enter into commitments to guarantee notes and obligations under 
this section with an aggregate principal amount of $150,000,000 during 
fiscal year 1988, and $153,000,000 during fiscal year 1989.''
    Subsec. (b). Pub. L. 101-625, Sec. 910(d), inserted ``(excluding any 
amount defeased under the contract entered into under subsection 
(d)(1)(A) of this section)'' after ``this section'', substituted ``5'' 
for ``three'', and inserted reference to section 5307 of this title.
    Subsec. (d). Pub. L. 101-625, Sec. 910(b)(4)(A), designated existing 
provisions as par. (1), redesignated former pars. (1) to (3) as subpars. 
(A) to (C), respectively, and added par. (2).
    Subsec. (e). Pub. L. 101-625, Sec. 910(b)(4)(B), substituted 
``paragraphs (1)(B) and (2) of subsection (d)'' for ``subsection 
(d)(2)''.
    Subsec. (h). Pub. L. 101-625, Sec. 910(f), inserted at end ``The 
Secretary may also, to the extent approved in appropriation Acts, assist 
the issuer of a note or other obligation guaranteed under this section 
in the payment of all or a portion of the principal and interest amount 
due under the note or other obligation, if the Secretary determines that 
the issuer is unable to pay the amount because of circumstances of 
extreme hardship beyond the control of the issuer.''
    Pub. L. 101-625, Sec. 910(b)(1), substituted ``entity or agency'' 
for ``unit or agency'' and ``eligible public entity'' for ``unit of 
general local government''.
    Subsec. (j). Pub. L. 101-625, Sec. 910(b)(1)(A), substituted 
``eligible public entity'' for ``unit of general local government''.
    Subsec. (k). Pub. L. 101-625, Sec. 910(e)(2), designated existing 
provisions as par. (1) and added par. (2).
    Subsec. (n). Pub. L. 101-625, Sec. 910(b)(3), added subsec. (n).
    Subsec. (o). Pub. L. 101-625, Sec. 910(b)(5), added subsec. (o).
    Subsec. (p). Pub. L. 101-625, Sec. 910(g), added subsec. (p).
    1988--Subsec. (a). Pub. L. 100-242, Sec. 514(c), in first sentence 
inserted cl. (1) designation and added cls. (2) and (3).
    Pub. L. 100-242, Sec. 514(a), in last sentence struck out ``during 
fiscal year 1984'' after ``commitment'' and substituted ``$150,000,000 
during fiscal year 1988, and $153,000,000 during fiscal year 1989'' for 
``$225,000,000''.
    Subsec. (m). Pub. L. 100-242, Sec. 514(b), added subsec. (m).
    1986--Subsec. (l). Pub. L. 99-272 added subsec. (l).
    1984--Subsec. (g). Pub. L. 98-479, Sec. 203(l)(2), substituted 
``chapter 31 of title 31'' for ``the Second Liberty Bond Act, as now or 
hereafter in force'' and ``such chapter'' for ``such Act''.
    Subsec. (h). Pub. L. 98-479, Sec. 204(k)(1), substituted 
``subsection (j)'' for ``subsection (g)''.
    1983--Subsec. (a). Pub. L. 98-181 inserted provision that a 
guarantee under this section may be used to assist a grantee in 
obtaining financing only if the grantee has made efforts to obtain such 
financing without the use of such guarantee and cannot complete such 
financing consistent with the timely execution of the program plans 
without such guarantee, and substituted provisions requiring the 
Secretary to enter into commitments during fiscal year 1984 to guarantee 
notes and obligations under this section with an aggregate principal 
amount of $225,000,000, notwithstanding any other provision of law and 
subject only to the absence of qualified applicants or proposed 
activities, for provisions prohibiting the Secretary from entering into 
commitments during fiscal year 1981 to guarantee under this section 
notes and other obligations with an aggregate principal amount in excess 
of $300,000,000.
    1981--Subsec. (d)(2). Pub. L. 97-35 struck out ``approved or'' after 
``grant''.
    1980--Subsec. (a). Pub. L. 96-399, Sec. 108(1), (2), inserted 
provision respecting amounts as provided in appropriation Acts, and 
provision relating to limitation of $300,000,000 the amount the 
Secretary is authorized to guarantee during fiscal year 1981.
    Subsec. (j). Pub. L. 96-399, Sec. 108(3), struck out 
``Notwithstanding any other provision of this section'' before ``The 
total amount''.
    1977--Subsec. (a). Pub. L. 95-128, Sec. 108(1), (3), reenacted 
substantially existing provisions and struck out ``or assembly'' after 
``acquisition of'', included rehabilitation of real property owned by 
the unit of general local government, inserted provision respecting 
form, denominations, maturities, and conditions of notes or other 
obligations to be guaranteed, and struck out after parenthetical text 
``to serve or be used in carrying out activities which are eligible for 
assistance under section 5305 of this title and are identified in the 
application under section 5304 of this title, and with respect to which 
grants have been or are to be made under section 5303 of this title, but 
no such guarantee shall be issued in behalf of any agency designed to 
benefit, in or by the flotation of any issue, a private individual or 
corporation''.
    Subsec. (b). Pub. L. 95-128, Sec. 108(1), (3), added subsec. (b) and 
struck out prior provisions respecting: reservation and withholding of 
prescribed amount for purpose of paying guaranteed obligations, subject 
to being increased because of any unanticipated, major reduction in 
estimated disposition proceeds; pledge of full faith and credit of unit 
of general local government to the Secretary for repayment of any amount 
required to be paid by the United States pursuant to any guarantee; and 
pledge of repayment of proceeds of grants in event of failure of 
repayment as hereinbefore provided.
    Subsecs. (c) to (e). Pub. L. 95-128, Sec. 108(3), added subsecs. (c) 
to (e). Former subsecs. (c) to (e) redesignated (f) to (h).
    Subsecs. (f), (g). Pub. L. 95-128, Sec. 108(2), redesignated former 
subsecs. (c) and (d) as (f) and (g).
    Subsec. (h). Pub. L. 95-128, Sec. 108(2), (4), (5), redesignated 
former subsec. (e) as (h) and substituted in first sentence ``subsection 
(j)'' for ``subsection (g)''; substituted in first sentence ``shall'' 
for ``may, at the option of the issuing unit of general local government 
or designated agency,''; and in second sentence ``The Secretary is 
authorized to make, and to contract to make, grants, in such amounts as 
may be approved in appropriations Acts,'' for ``In the event that 
taxable obligations are issued and guaranteed, the Secretary is 
authorized to make, and to contract to make, grants''.
    Subsec. (j). Pub. L. 95-128, Sec. 108(2), (6), redesignated former 
subsec. (g) as (j) and substituted ``is guaranteed pursuant to'' for 
``such unit or agency has elected to issue as a taxable obligation 
pursuant to subsection (e) of''.
    Subsec. (k). Pub. L. 95-128, Sec. 108(7), added subsec. (k).


                    Effective Date of 1996 Amendment

    Amendment by Pub. L. 104-120 to be construed to have become 
effective Oct. 1, 1995, see section 13(a) of Pub. L. 104-120, set out as 
an Effective and Termination Dates of 1996 Amendments note under section 
1437d of this title.


                    Effective Date of 1994 Amendment

    Amendment by Pub. L. 103-233 applicable with respect to any amounts 
made available to carry out subchapter II (Sec. 12721 et seq.) of 
chapter 130 of this title after Apr. 11, 1994, and any amounts made 
available to carry out that subchapter before that date that remain 
uncommitted on that date, with Secretary to issue any regulations 
necessary to carry out such amendment not later than end of 45-day 
period beginning on that date, see section 209 of Pub. L. 103-233, set 
out as a note under section 5301 of this title.


                    Effective Date of 1986 Amendment

    Section 3002(b) of Pub. L. 99-272 provided that: ``The amendment 
made by subsection (a) [amending this section] shall take effect on July 
1, 1986.''


                    Effective Date of 1983 Amendment

    Amendment by Pub. L. 98-181 applicable only to funds available for 
fiscal year 1984 and thereafter, see section 110(b) of Pub. L. 98-181, 
as amended, set out as a note under section 5316 of this title.


                    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.


                    Effective Date of 1977 Amendment

    Amendment by Pub. L. 95-128 effective Oct. 1, 1977, see section 114 
of Pub. L. 95-128, set out as a note under section 5301 of this title.


                               Regulations

    Section 910(i) of Pub. L. 101-625 provided that: ``To carry out the 
amendments made by this section [amending this section and section 5313 
of this title], the Secretary of Housing and Urban Development shall--
        ``(1) issue proposed regulations not later than 90 days after 
    the date of the enactment of this Act [Nov. 28, 1990]; and
        ``(2) issue final regulations not later than 180 days after the 
    date of the enactment of this Act.''


                  Community Development Loan Guarantees

    Section 910(a) of Pub. L. 101-625 provided that:
    ``(1) Purposes.--The purposes of the amendments made by this section 
[amending this section and section 5313 of this title] are--
        ``(A) to reaffirm the commitment of the Federal Government to 
    assist local governments in their efforts in stimulating economic 
    and community development activities needed to combat severe 
    economic distress and to help in promoting economic development 
    activities needed to aid in economic recovery; and
        ``(B) to promote revitalization and development projects 
    undertaken by local governments that principally benefit persons of 
    low and moderate income, the elimination of slums and blight, and to 
    meet urgent community needs, with special priority for projects 
    located in areas designated as enterprise zones by the Federal 
    Government or by any State.
    ``(2) Objectives.--In order to further the purpose described in 
paragraph (1), activities undertaken pursuant to the amendments made by 
this section shall be directed toward meeting the objectives set forth 
in sections 101(c) and 104(b)(3) of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5301(c) and 5304(b)(3)) and the 
additional objectives of--
        ``(A) encouraging local governments to establish public-private 
    partnerships;
        ``(B) preserving housing affordable for persons of low and 
    moderate income; and
        ``(C) creating permanent employment opportunities, primarily for 
    persons of low and moderate income.''


  Administrative Actions for Provision of Private Sector Financing of 
                            Guaranteed Loans

    Section 3002(c) of Pub. L. 99-272 provided that: ``The Secretary of 
Housing and Urban Development shall take such administrative actions as 
are necessary to provide by the effective date of subsection (a) [July 
1, 1986] private sector financing of loans guaranteed under section 108 
of the Housing and Community Development Act of 1974 [this section].''

                  Section Referred to in Other Sections

    This section is referred to in sections 5301, 5304, 5306, 5313, 5318 
of this title; title 26 section 42; title 31 section 1305.
