42 U.S.C. § 1490b — Housing for rural trainees

Page 4797 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1490b when the Secretary determines that the needs of the applicant for necessary housing cannot be met with fi- nancial assistance from other sources including assist- ance under section 1715z or 1715z–1 of title 12: Provided further, That interest on loans under section 1472 or 1487(a) of this title to victims of natural disaster shall not exceed the rate which would be applicable to such loans under section 1472 of this title without regard to this section’’, after ‘‘one-eighth of 1 per centum,’’ and added pars. (B) to (H). Subsec. (a)(2)(A). Pub. L. 95–557, § 507, substituted ‘‘public and private nonprofit owners’’ for ‘‘the own- ers’’, inserted ‘‘congregate, or cooperative’’ after ‘‘rent- al’’ and inserted ‘‘by a loan under section 1484 of this title’’ after ‘‘section 1485 of this title for elderly or handicapped housing’’. 1977—Subsec. (a)(1). Pub. L. 95–128, §§ 502(d), 507(a)(4), provided that any loan guaranteed under this sub- chapter shall bear interest at the rate as may be agreed upon by the borrower and the lender and provided loans for housing of handicapped persons or families. Subsec. (a)(2)(A). Pub. L. 95–128, §§ 507(a)(5), 511, in- cluded handicapped housing in cl. (i) and substituted ‘‘shall’’ for ‘‘may’’ wherever appearing, except in cl. (i). 1976—Subsec. (a)(1). Pub. L. 94–375 substituted ‘‘rate determined by the Secretary of the Treasury upon the request of the Secretary’’ for ‘‘rate determined annu- ally by the Secretary of the Treasury’’. 1974—Subsec. (a)(1). Pub. L. 93–383, §§ 514(a), 516(c)(1), redesignated existing subsec. (a) as (a)(1) and, as so re- designated, substituted ‘‘loans under section 1485 of this title’’ for ‘‘and loans under section 1485 of this title’’ and inserted provisions relating to loans under section 1490f of this title to provide condominium hous- ing for persons and families of low or moderate income. Subsec. (a)(2). Pub. L. 93–383, § 514(a), added par. (2). Subsec. (b). Pub. L. 93–383, § 516(c)(2), inserted ref- erences to sections 1490f(a) and 1490f(c) of this title. Subsec. (c). Pub. L. 93–383, §§ 514(b), 516(c)(3), reorga- nized structure of subsec. (c) by designating existing provisions as cl. (1) and, as so designated, substituted reference to subsec. (a)(1) of this section for reference to subsec. (a) of this section, added cl. (2), and made former second clause into second sentence, and, as so amended, inserted reference to section 1490f of this title and struck out ‘‘excess’’ after ‘‘unreimbursed’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1983 AMENDMENT Pub. L. 98–181, title I [title V, § 517(f)], Nov. 30, 1983, 97 Stat. 1249, provided that: ‘‘The amendments made by this section [amending this section and section 1490j of this title] shall take effect six months after the date of enactment of this Act [Nov. 30, 1983], or upon the ear- lier promulgation of regulations implementing this sec- tion by the Secretary.’’ 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. § 1490b. Housing for rural trainees (a) Authorization; financial and technical assist- ance; selection of training sites and location of housing Upon the application of any State or political subdivision thereof, or any public or private nonprofit organization, the Secretary is author- ized, after consultation with the Secretary of Labor, the Secretary of Health and Human Serv- ices, the Secretary of Housing and Urban Devel- opment, and the Director of the Office of Eco- nomic Opportunity, and after the Secretary de- termines that the housing and related facilities cannot reasonably be provided in any other way, to provide financial and technical assistance for the establishment, in rural areas, of housing and related facilities for trainees and their families who are residents of a rural area and have a rural background, while such trainees are en- rolled and participating in training courses de- signed to improve their employment capability. The selection of training sites and location of housing shall be made with due regard to the economic viability of the area, and only after consideration of a labor area survey and full co- ordination among all Government agencies hav- ing primary responsibility for administering re- lated programs. (b) Quality of housing and related facilities; de- sign and location Housing and related facilities assisted under this section shall be safe and sanitary, con- structed in the most economical manner, and of modest design, giving due consideration to the purposes to be served and the needs of the occu- pants, and may, in the discretion of the Sec- retary, include mobile family quarters. Design and location shall be such as to facilitate, as feasible, the use of such housing and related fa- cilities for other purposes when no longer need- ed for the primary purpose. (c) Contribution of land by applicant The applicant shall contribute the necessary land, or funds to acquire such land, from its own resources, including land acquired by donation or from funds repayable under subsection (e) or borrowed from other sources. (d) Conditions precedent to grant of financial as- sistance No financial assistance shall be made avail- able under this section unless, to the extent and for the periods required by the Secretary, the applicant agrees that— (1) such housing will be maintained at all times in a safe and sanitary condition in ac- cordance with standards prescribed by State or local law, or, in the absence of such stand- ards, with requirements prescribed by the Sec- retary; (2) priority shall be given at all times, in granting occupancy of such housing and facili- ties, to the trainees and their families de- scribed in subsection (a); and (3) rentals charged them shall not exceed amounts approved by the Secretary after con- sidering the portion of the actual total family income which the family can afford to pay for rent while meeting its other immediate needs during occupancy. (e) Advances; repayment; limitation on amount The Secretary may make advances pursuant to any contract for financial assistance under this section at such times and in such manner as may be specified in the contract. Such advances for the purchase of land shall be repayable with interest and within a period not to exceed thir- ty-three years and may be made upon such secu- rity, if any, as the Secretary requires. Advances for other purposes may be made repayable with or without interest or nonrepayable, as deter- mined by the Secretary on the basis of the an- ticipated income, and cost of operation of the Page 4798 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1490c housing and related facilities and the ability of each applicant to finance such facilities. Any advances shall be limited to cover the capital costs of constructing such facilities, plus inter- est on borrowings to cover such costs. (f) Sale of housing and related facilities to ineli- gible transferee or diversion to use other than primary purpose; repayment of ad- vances; return of property to original condi- tion Should housing and related facilities assisted pursuant to a contract under this section be sold to an ineligible transferee or diverted to a use other than its primary purpose within a period specified in the contract, all advances made under such contract shall be repaid to the Sec- retary, up to the amount of the sales price or the fair value of the property as determined by the Secretary, whichever is higher, with interest from the date of the sale or diversion. If no suit- able alternate use of the property is available, as determined by the Secretary, after the pur- pose of this section can no longer be served, the property shall be returned to its original condi- tion by the recipient of the assistance. (g) Interest on advances Interest charged on advances made under this section shall be at a rate, prescribed by the Sec- retary, which shall be not less than a rate deter- mined by the Secretary of the Treasury taking into consideration the current average market yield on outstanding marketable obligations of the United States with remaining periods to ma- turity comparable to the average maturities of such loans, adjusted to the nearest one-eighth of 1 per centum, less not to exceed the difference between the adjusted rate determined by the Secretary of the Treasury and 1 per centum per annum, as determined by the Secretary. (h) Regulations The Secretary shall prescribe regulations to insure that Federal funds expended under this section are not wasted or dissipated. (i) ‘‘Related facilities’’ and ‘‘trainee’’ defined As used in this section (1) the term ‘‘related facilities’’ shall include any necessary commu- nity rooms or buildings, infirmaries, utilities, access roads, water and sewer services, and the minimum fixed or movable equipment deter- mined by the Secretary to be necessary to make the housing reasonably habitable by trainees and their families; and (2) the term ‘‘trainee’’ means any person receiving training under any federally assisted training program. (j) Authorization of appropriations There are authorized to be appropriated such sums as may be necessary to carry out this sec- tion. (July 15, 1949, ch. 338, title V, § 522, as added Pub. L. 90–448, title X, § 1002, Aug. 1, 1968, 82 Stat. 551; amended Pub. L. 98–479, title II, § 201(c), Oct. 17, 1984, 98 Stat. 2228; Pub. L. 100–242, title III, § 316(e), Feb. 5, 1988, 101 Stat. 1898.) Editorial Notes AMENDMENTS 1988—Subsec. (a). Pub. L. 100–242 substituted ‘‘Sec- retary of Health and Human Services’’ for ‘‘Secretary of Health, and Human Services’’. 1984—Subsec. (a). Pub. L. 98–479 substituted ‘‘Health, and Human Services’’ for ‘‘Health, Education, and Wel- fare’’. Statutory Notes and Related Subsidiaries OFFICE OF ECONOMIC OPPORTUNITY Pub. L. 93–644, § 9(a), Jan. 4, 1975, 88 Stat. 2310 [42 U.S.C. 2941], amended the Economic Opportunity Act of 1964 [42 U.S.C. 2701 et seq.] to create the Community Services Administration, an independent agency in the executive branch, as the successor authority to the Of- fice of Economic Opportunity, and provided that ref- erences to the Office of Economic Opportunity or to its Director were deemed to refer to the Community Serv- ices Administration or to its Director. The Community Services Administration was terminated when the Eco- nomic Opportunity Act of 1964, except for titles VIII and X, was repealed, effective Oct. 1, 1981, by section 683(a) of Pub. L. 97–35, title VI, Aug. 13, 1981, 95 Stat. 519 (42 U.S.C. 9912(a)). An Office of Community Services, headed by a Director, was established in the Depart- ment of Health and Human Services by section 676 of Pub. L. 97–35 (42 U.S.C. 9905). § 1490c. Mutual and self-help housing (a) Purpose The purposes of this section are (1) to make fi- nancial 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 hous- ing by acquiring and developing necessary land, acquiring building materials, providing their own labor, and working cooperatively with oth- ers for the provision of decent, safe, and sani- tary dwellings for themselves, their families, and others in the area or town involved, and (2) to facilitate the efforts of both public and pri- vate nonprofit organizations providing assist- ance to such individuals to contribute their technical and supervisory skills toward more ef- fective 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; au- thorization to make loans; conditions of loan In order to carry out the purposes of this sec- tion, the Secretary of Agriculture (in this sec- tion referred to as the ‘‘Secretary’’) is author- ized— (1)(A) to make grants to, or contract with, public or private nonprofit corporations, agen- cies, institutions, organizations, Indian tribes, and other associations approved by him, to pay part or all of the costs of developing, con- ducting, administering, or coordinating effec- tive and comprehensive programs of technical and supervisory assistance which will aid needy low-income individuals and their fami- lies in carrying out mutual or self-help hous- ing efforts, including the repair of units fi- nanced 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