42 U.S.C. § 9810 — Financial assistance to low-income fami-

Page 7827 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 9812 1 So in original. Probably should be ‘‘nonagricultural’’. 9807(a) of this title shall not exceed 90 percent of the cost of such program, including costs of ad- ministration, unless the Secretary determines that the assistance in excess of such percentage is required in furtherance of the purposes of this subchapter. Non-Federal contributions may be in cash or in kind, fairly evaluated, including but not limited to plant, equipment, and serv- ices. (2) The assistance referred to in paragraph (1) shall be made available (A) for deposit to the order of grantees which have demonstrated suc- cessful program performance, under conditions which the Secretary deems appropriate, within 30 days following approval of the grant agree- ment by the Secretary and such grantee; or (B) whenever the Secretary deems appropriate, in accordance with applicable rules and regulations prescribed by the Secretary of the Treasury, and including any other conditions which the Sec- retary of Health and Human Services deems ap- propriate, within 30 days following approval of the grant agreement by the Secretary and such grantee. (b) Property acquired as a result of capital in- vestments made by any community develop- ment corporation with funds granted as its Fed- eral share of the cost of programs carried out under this subchapter, and the proceeds from such property, shall become the property of the community development corporation and shall not be considered to be Federal property. The Federal Government retains the right to direct that on severance of the grant relationship the assets purchased with grant funds shall continue to be used for the original purpose for which they were granted. (Pub. L. 97–35, title VI, § 619, Aug. 13, 1981, 95 Stat. 493.) PART B—SPECIAL RURAL PROGRAMS § 9809. Statement of purpose It is the purpose of this part to meet the spe- cial economic needs of rural communities or areas with concentrations or substantial num- bers of low-income persons by providing support to self-help programs which promote economic development and independence, as a supplement to existing similar programs conducted by other departments and agencies of the Federal Gov- ernment. Such programs should encourage low- income families to pool their talents and re- sources so as to create and expand rural eco- nomic enterprise. (Pub. L. 97–35, title VI, § 620, Aug. 13, 1981, 95 Stat. 493.) § 9810. Financial assistance to low-income fami- lies, local cooperative associations, and local public or private nonprofit organizations or entities; amount, purposes, etc. (a) The Secretary is authorized to provide fi- nancial assistance, including loans having a maximum maturity of fifteen years and in amounts not resulting in an aggregate principal indebtedness of more than $3,500 at any one time, to any low-income rural family where, in the judgment of the Secretary, such financial assistance has a reasonable possibility of effect- ing a permanent increase in the income of such families, or will contribute to the improvement of their living or housing conditions, by assist- ing or permitting them to— (1) acquire or improve real estate or reduce encumbrances or erect improvements thereon; (2) operate or improve the operation of farms not larger than family sized, including but not limited to the purchase of feed, seed, fertilizer, livestock, poultry, and equipment; or (3) participate in cooperative associations, or finance nonagricultral 1 enterprises which will enable such families to supplement their income. (b) The Secretary is authorized to provide fi- nancial assistance to local cooperative associa- tions or local public and private nonprofit orga- nizations or agencies in rural areas containing concentrations or substantial numbers of low- income persons for the purpose of defraying all or part of the costs of establishing and operating cooperative programs for farming, purchasing, marketing, processing, and to improve their in- come as producers and their purchasing power as consumers, and to provide such essentials as credit and health services. Costs which may be defrayed shall include— (1) administrative costs of staff and over- head; (2) costs of planning and developing new en- terprises; (3) costs of acquiring technical assistance; and (4) initial capital where it is determined by the Secretary that the poverty of the families participating in the program and the social conditions of the rural area require such as- sistance. (Pub. L. 97–35, title VI, § 621, Aug. 13, 1981, 95 Stat. 493.) § 9811. Limitation on assistance No financial assistance shall be provided under this part unless the Secretary determines that— (1) any cooperative association receiving as- sistance has a minimum of fifteen active members, a majority of which are low-income rural persons; (2) adequate technical assistance is made available and committed to the programs being supported; (3) such financial assistance will materially further the purposes of this part; and (4) the applicant is fulfilling or will fulfill a need for services, supplies, or facilities which is otherwise not being met. (Pub. L. 97–35, title VI, § 622, Aug. 13, 1981, 95 Stat. 494.) PART C—DEVELOPMENT LOANS TO COMMUNITY ECONOMIC DEVELOPMENT PROGRAMS § 9812. Development loan fund (a) Authorities, scope, and purposes; conditions; interest rate; repayment The Secretary is authorized to make or guar- antee loans (either directly or in cooperation