42 U.S.C. § 12772 — Project-specific assistance to community housing development organizations

submitted 36 years ago by Pub. L. 101-625 to r/title-42-THE-PUBLIC-HEALTH-AND-WELFARE · 398 words · no verdicts yet

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Up to 10% of reserved section 12771 funds can pay for special project assistance. This covers technical assistance and loans for early-stage project costs. Loans must be repaid from construction proceeds, but jurisdictions may waive repayment.

(a) In general: Money reserved under section 12771 may be used for the usual eligible activities under section 12742. Up to 10% of that reserved money may instead go to the other activities described in this section. (b) Project-specific technical assistance and site control loans: (1) In general: Reserved funds may pay for technical assistance and site control loans to community housing development organizations that are in the early stages of developing an eligible project. These loans cannot exceed what the jurisdiction decides are customary, reasonable project-preparation costs allowed under paragraph (2). (2) Allowable expenses: A loan can cover costs needed to check whether the project is feasible — including an initial feasibility study — plus consulting fees, preliminary financial application costs, legal fees, architectural fees, engineering fees, hiring a development team, and site control and title clearance. (3) Repayment: The organization must repay the loan to the jurisdiction's HOME Investment Trust Fund out of construction loan proceeds or other project income. The jurisdiction may waive repayment, in part or fully, if the jurisdiction decides the project ran into obstacles reasonably beyond the borrower's control. (c) Project-specific seed money loans: (1) In general: Reserved funds may also pay for loans covering preconstruction costs the jurisdiction decides are customary and reasonable — including firm construction loan commitments, architectural plans and specs, zoning approvals, engineering studies, and legal fees. (2) Eligible sponsors: This kind of loan can only go to an organization that already has site control, a preliminary financial commitment, and a capable development team for the project. (3) Repayment: As with the loans above, the organization must repay this loan from construction loan proceeds or project income, and the jurisdiction may waive repayment, in part or fully, for obstacles reasonably beyond the borrower's control.

the actual law source: uscode.house.gov ↗public domain

(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.

(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.

Source credit: (Pub. L. 101–625, title II, § 232, Nov. 28, 1990, 104 Stat. 4115.)

history & why it existsrecord from the source credit

1990Enacted · Pub. L. 101-625 · 104 Stat. 4115

A history note hasn’t been published yet. The record shows enactment by Pub. L. 101-625 on 1990-11-28.

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