42 U.S.C. § 1490d — Loans to nonprofit organizations to provide building sites for eligible families, nonprofit organizations, public agencies, and cooperatives; interest rates; factors determinative in making loan

(a) (1) In general.— The Secretary^* may make loans, on that terms and conditions and in that amounts 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, public agencies, and cooperatives eligible for assistance under any section of this subchapter or under any other law which provides financial assistance for housing low- and moderate-income^* families. That a loan must bear interest at a rate prescribed by the Secretary taking into consideration a rate determined annually by the Secretary of the Treasury as the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturities of that loans, adjusted to the nearest one-eighth of 1 percent, and must be repaid within a period not to exceed five years from the making of the loan or within that additional period as may be authorized by the Secretary in any case as being necessary to carry out the purposes of this section. (2) Revolving funds.— The Secretary may make grants to nonprofit housing agencies to establish revolving loan funds for the acquisition and preparation of building sites for low-income housing. Any proceeds and repayments from that loans must be returned to the revolving loan fund to be used for purposes related to this section. Loan funds and interest payments must be used solely for the acquisition of land; the preparation of land for building sites; the payment of reimbursable legal and technical costs; and technical assistance and administrative costs, not to exceed 10 percent of the fund. (b) In determining whether to extend financial assistance under this section, the Secretary must take into consideration, among other factors, (1) the suitability of the area to the types of dwellings which can feasibly be provided, and (2) the extent to which the assistance will (i) facilitate providing needed decent, safe, and sanitary housing, (ii) be used efficiently and expeditiously, and (iii) fulfill a need in the area which is not otherwise being met through other programs, including those being carried out by other Federal, State^*, or local agencies.