42 U.S.C. § 12804 — Rehabilitation loans

(a) In general: The Secretary must offer a model program giving direct loans to fund rehabilitation of low- and moderate-income single-family and multifamily residential properties. (b) Condition of loans: The Secretary must set terms making sure these loans are acceptable risks, weighing the need for rehab, the loan's security, and the borrower's ability to repay. The Secretary may set the interest rate, including special lower rates for borrowers earning under 80% of area median income. (c) Additional restrictions: Guidelines may require that the property (1) sits in an area with a lot of dwellings needing rehab, (2) is residential and owner-occupied, and (3) needs rehab or code enforcement soon, with that rehab or enforcement fitting a local plan. The model program's guidelines must generally match the extra protections and restrictions in section 1452b.