42 U.S.C. § 1471 — Financial assistance by Secretary of Agri-

Page 4741 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1471 1 So in original. workable program requirements, transient housing, re- moval of buildings, financial assistance for subsequent annual increments, and modification of urban renewal plans. Statutory Notes and Related Subsidiaries NEIGHBORHOOD DEVELOPMENT PROGRAMS BY DISTRICT OF COLUMBIA REDEVELOPMENT LAND AGENCY Pub. L. 90–448, title V, § 501(c), Aug. 1, 1968, 82 Stat. 520, provided that notwithstanding any requirement or condition to the contrary in section 6 or 20(i) of the District of Columbia Redevelopment Act of 1945 (act Aug. 2, 1946, ch. 736, 60 Stat. 790, as amended), or any other law, the District of Columbia Redevelopment Land Agency was authorized to plan and undertake neighborhood development programs under this part, which programs would be regarded as complying with sections 6 and 20(i) of that Act and any other provision of law, if those programs were in compliance with this part. SUBCHAPTER III—FARM HOUSING § 1471. Financial assistance by Secretary of Agri- culture (a) Authorization and purposes of assistance The Secretary of Agriculture (hereinafter re- ferred to as the ‘‘Secretary’’) is authorized, sub- ject to the terms and conditions of this sub- chapter, to extend financial assistance, through the Farmers Home Administration, (1) to owners of farms in the United States and in the Terri- tories of Alaska and Hawaii and in the Common- wealth of Puerto Rico, the Virgin Islands, the territories and possessions of the United States, and the Trust Territory of the Pacific Islands, to enable them to construct, improve, alter, repair, or replace dwellings and other farm buildings on their farms, and to purchase buildings and land constituting a minimum adequate site, in order to provide them, their tenants, lessees, share- croppers, and laborers with decent, safe, and sanitary living conditions and adequate farm buildings as specified in this subchapter, and (2) to owners of other real estate in rural areas for the construction, improvement, alteration, or repair of dwellings, related facilities, and farm buildings and to rural residents, including per- sons who reside in reservations or villages of In- dian tribes, for such purposes and for the pur- chase of buildings and the purchase of land con- stituting a minimum adequate site, in order to enable them to provide dwellings and related fa- cilities for their own use and buildings adequate for their farming operations, and (3) to elderly or handicapped persons or families who are or will be the owners of land in rural areas for the construction, improvement, alteration, or repair of dwellings and related facilities, the purchase of dwellings and related facilities and the pur- chase of land constituting a minimum adequate site, in order to provide them with adequate dwellings and related facilities for their own use, and (4) to an owner described in clause (1), (2), or (3) for refinancing indebtedness which— (A) was incurred for an eligible purpose de- scribed in such clause, and (B)(i) if not refinanced, is likely to result (because of circumstances beyond the control of the applicant) at an early date in the loss of the applicant’s necessary dwelling or essential farm service buildings, or (ii) if combined (in the case of a dwelling that the Secretary finds not to be decent, safe, and sanitary) with a loan for improvement, re- habilitation, or repairs and not refinanced, is likely to result in the applicant’s continuing to be deprived of a decent, safe, and sanitary dwelling. (5) 1 DEFINITIONS.—For purposes of this sub- chapter, the terms ‘‘repair’’, ‘‘repairs’’, ‘‘reha- bilitate’’, and ‘‘rehabilitation’’ include measures to evaluate and reduce lead-based paint hazards, as such terms are defined in section 4851b of this title. (b) Definitions (1) For the purpose of this subchapter, the term ‘‘farm’’ shall mean a parcel or parcels of land operated as a single unit which is used for the production of one or more agricultural com- modities and which customarily produces or is capable of producing such commodities for sale and for home use of a gross annual value of not less than the equivalent of a gross annual value of $400 in 1944, as determined by the Secretary. The Secretary shall promptly determine wheth- er any parcel or parcels of land constitute a farm for the purposes of this subchapter when- ever requested to do so by any interested Fed- eral, State, or local public agency, and his deter- mination shall be conclusive. (2) For the purposes of this subchapter, the terms ‘‘owner’’ and ‘‘mortgage’’ shall be deemed to include, respectively, the lessee of, and other security interest in, any leasehold interest which the Secretary determines has an unex- pired term (A) in the case of a loan, for a period sufficiently beyond the repayment period of the loan to provide adequate security and a reason- able probability of accomplishing the objectives for which the loan is made, and (B) in the case of a grant for a period sufficient to accomplish the objectives for which the grant is made. (3) For the purposes of this subchapter, the term ‘‘elderly or handicapped persons or fami- lies’’ means families which consist of two or more persons, the head of which (or his or her spouse) is at least sixty-two years of age or is handicapped. Such term also means a single per- son who is at least sixty-two years of age or is handicapped. A person shall be considered handi- capped if such person is determined, pursuant to regulations issued by the Secretary, to have an impairment which (A) is expected to be of long- continued and indefinite duration, (B) substan- tially impedes his ability to live independently, and (C) is of such a nature that such ability could be improved by more suitable housing con- ditions, or if such person has a developmental disability as defined in section 15002 of this title. The Secretary shall prescribe such regulations as may be necessary to prevent abuses in deter- mining, under the definitions contained in this paragraph, eligibility of families and persons for admission to and occupancy of housing con- structed with assistance under this subchapter. Notwithstanding the preceding provisions of this paragraph, such term also includes two or more elderly (sixty-two years of age or over) or handicapped persons living together, one or Page 4742 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1471 more such persons living with another person who is determined (under regulations prescribed by the Secretary) to be essential to the care or well-being of such persons, and the surviving member or members of any family described in the first sentence of this paragraph who were living, in a unit assisted under this subchapter, with the deceased member of the family at the time of his or her death. (4) For the purpose of this subchapter, the terms ‘‘low income families or persons’’ and ‘‘very low-income families or persons’’ means those families and persons whose incomes do not exceed the respective levels established for lower income families and very low-income fam- ilies under the United States Housing Act of 1937 [42 U.S.C. 1437 et seq.]. Notwithstanding the pre- ceding sentence, the maximum income levels es- tablished for purposes of this subchapter for such families and persons in the Virgin Islands shall not be less than the highest such levels es- tablished for purposes of this subchapter for such families and persons in American Samoa, Guam, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands. The tem- porary absence of a child from the home due to placement in foster care should not be consid- ered in considering family composition and fam- ily size. (5)(A) For the purpose of this subchapter, the terms ‘‘income’’ and ‘‘adjusted income’’ have the meanings given by sections 3(b)(4) and 3(b)(5), respectively, of the United States Hous- ing Act of 1937 [42 U.S.C. 1437a(b)(4), (5)]. (B) For purposes of this subchapter, the term ‘‘income’’ does not include dividends received from the Alaska Permanent Fund by a person who was under the age of 18 years when that per- son qualified for the dividend. (6) For the purposes of this subchapter, the term ‘‘Indian tribe’’ means any Indian tribe, band, group, and nation, including Alaska Indi- ans, Aleuts, and Eskimos, and any Alaskan Na- tive Village, of the United States, which is con- sidered an eligible recipient under the Indian Self-Determination and Education Assistance Act (Public Law 93–638) [25 U.S.C. 5301 et seq.] or was considered an eligible recipient under chap- ter 67 of title 31 prior to the repeal of such chap- ter. (7) For the purposes of this subchapter, the term ‘‘rural resident’’ shall include a family or a person who is a renter of a dwelling unit in a rural area. (8) For the purposes of this subchapter, the term ‘‘adequate dwelling’’ means a decent, safe, and sanitary dwelling unit. (c) Conditions of eligibility In order to be eligible for the assistance au- thorized by subsection (a), the applicant must show (1) that he is the owner of a farm which is without a decent, safe, and sanitary dwelling for himself and his family and necessary resident farm labor, or for the family of the operating tenant, lessee, or sharecropper, or without other farm buildings adequate for the type of farming in which he engages or desires to engage, or that he is the owner of other real estate in a rural area or a rural resident without an adequate dwelling or related facilities for his own use or buildings adequate for his farming operations, or that the applicant is an elderly or handi- capped person or family in a rural area without an adequate dwelling or related facility for its own use, or that he is the owner of a farm or other real estate in a rural area who needs refi- nancing of indebtedness described in clause (4) of subsection (a); (2) that he is without sufficient resources to provide the necessary housing and buildings on his own account; and (3) that he is unable to secure the credit necessary for such housing and buildings from other sources upon terms and conditions which he could reasonably be expected to fulfill. If an applicant is a State or local public agency or Indian tribe— (A) the provisions of clause (3) shall not apply to its application; and (B) the applicant shall be eligible to partici- pate in any program under this subchapter if the persons or families to be served by the ap- plicant with the assistance being sought would be eligible to participate in such program. (d) Additional definitions As used in this subchapter (except in sections 1473 and 1474(b) of this title) the terms ‘‘farm’’, ‘‘farm dwelling’’, and ‘‘farm housing’’ shall in- clude dwellings or other essential buildings of eligible applicants. (e) Prepayment of taxes, insurance, and other ex- penses; advances to account of borrower: in- terest, time for repayment The Secretary shall establish procedures under which borrowers under this subchapter are required to make periodic payments for the purpose of taxes, insurance, and other necessary expenses as the Secretary may deem appro- priate. Notwithstanding any other provision of law, such payments shall not be considered pub- lic funds. The Secretary shall direct the dis- bursement of the funds at the appropriate time or times for the purposes for which the funds were escrowed. The Secretary shall pay the same rate of interest on escrowed funds as is re- quired to be paid on escrowed funds held by other lenders in any State where State law re- quires payment of interest on escrowed funds, subject to appropriations to the extent that ad- ditional budget authority is necessary to carry out this sentence. If the prepayments made by the borrower are not sufficient to pay the amount due, advances may be made by the Sec- retary to pay the costs in full, which advances shall be charged to the account of the borrower, bear interest, and be payable in a timely fashion as determined by the Secretary. The Secretary shall notify a borrower in writing when loan payments are delinquent. (f) Increase in loan limits With respect to any limitation on the amount of any loan which may be made, insured, or guaranteed under this subchapter for the pur- chase of a dwelling unit, the Secretary may in- crease such amount by up to 20 percent if such increase is necessary to account for the in- creased cost of the dwelling unit due to the in- stallation of a solar energy system (as defined in subparagraph (3) of the last paragraph of section 1703(a) of title 12) therein. Page 4743 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1471 (g) Avoidance of involuntary displacement of families and businesses The programs authorized by this subchapter shall be carried out, consistent with program goals and objectives, so that the involuntary displacement of families and businesses is avoid- ed. (h) Eligibility of resident aliens The Secretary may not restrict the avail- ability of assistance under this subchapter for any alien for whom assistance may not be re- stricted under section 1436a of this title. (i) Loan packaging by nonprofit organizations as a ‘‘development cost’’ For the purposes of this subchapter, the term ‘‘development cost’’ shall include the packaging of loan and grant applications and actions re- lated thereto by public and private nonprofit or- ganizations tax exempt under title 26. (j) Program transfers Notwithstanding any other provision of law, the Secretary shall not transfer any program authorized by this subchapter to the Rural De- velopment Administration. (July 15, 1949, ch. 338, title V, § 501, 63 Stat. 432; Pub. L. 87–70, title VIII, §§ 801(a), 803, June 30, 1961, 75 Stat. 186; Pub. L. 87–723, § 4(a)(1), Sept. 28, 1962, 76 Stat. 670; Pub. L. 89–117, title X, § 1001, Aug. 10, 1965, 79 Stat. 497; Pub. L. 89–754, title VIII, §§ 801, 807, Nov. 3, 1966, 80 Stat. 1282; Pub. L. 91–609, title VIII, § 802, Dec. 31, 1970, 84 Stat. 1806; Pub. L. 93–383, title V, §§ 501–503, 505(a), 520, Aug. 22, 1974, 88 Stat. 692, 693, 699; Pub. L. 95–128, title V, §§ 503, 507(a)(1), (2), (b), Oct. 12, 1977, 91 Stat. 1139–1141; Pub. L. 95–619, title II, § 248(c), Nov. 9, 1978, 92 Stat. 3235; Pub. L. 96–153, title V, §§ 502(b), 506, Dec. 21, 1979, 93 Stat. 1134, 1136; Pub. L. 96–399, title V, §§ 506, 507(a), (h), 512, Oct. 8, 1980, 94 Stat. 1669–1671; Pub. L. 98–181, title I [title V, § 502], Nov. 30, 1983, 97 Stat. 1240; Pub. L. 98–479, title I, § 105(a), title II, § 203(d)(3), Oct. 17, 1984, 98 Stat. 2226, 2229; Pub. L. 99–272, title XIV, § 14001(b)(3), Apr. 7, 1986, 100 Stat. 328; Pub. L. 100–242, title III, §§ 302(a), (b)(1), 303, 315, 316(a), Feb. 5, 1988, 101 Stat. 1893, 1894, 1897; Pub. L. 101–625, title VII, §§ 702, 703, Nov. 28, 1990, 104 Stat. 4282, 4283; Pub. L. 102–550, title VII, § 714, title X, § 1012(m), Oct. 28, 1992, 106 Stat. 3842, 3907; Pub. L. 104–193, title IV, § 441(b), Aug. 22, 1996, 110 Stat. 2276; Pub. L. 106–402, title IV, § 401(b)(8), Oct. 30, 2000, 114 Stat. 1738; Pub. L. 107–76, title VII, § 752, Nov. 28, 2001, 115 Stat. 740; Pub. L. 108–199, div. A, title VII, § 768, Jan. 23, 2004, 118 Stat. 40.) Editorial Notes REFERENCES IN TEXT The United States Housing Act of 1937, referred to in subsec. (a)(4), is act Sept. 1, 1937, ch. 896, as revised gen- erally by Pub. L. 93–383, title II, § 201(a), Aug. 22, 1974, 88 Stat. 653, which is classified generally to chapter 8 (§ 1437 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 1437 of this title and Tables. The Indian Self-Determination and Education Assist- ance Act, referred to in subsec. (b)(6), is Pub. L. 93–638, Jan. 4, 1975, 88 Stat. 2203, which is classified principally to chapter 46 (§ 5301 et seq.) of Title 25, Indians. For complete classification of this Act to the Code, see Short Title note set out under section 5301 of Title 25 and Tables. Chapter 67 of title 31, referred to in subsec. (b)(6), was repealed by Pub. L. 99–272, title XIV, § 14001(a)(1), Apr. 7, 1986, 100 Stat. 327, effective Oct. 18, 1986. AMENDMENTS 2004—Subsec. (b)(5)(B). Pub. L. 108–199 struck out ‘‘for fiscal years 2002 and 2003,’’ after ‘‘this subchapter,’’. 2001—Subsec. (b)(5). Pub. L. 107–76 designated existing provisions as subpar. (A) and added subpar. (B). 2000—Subsec. (b)(3). Pub. L. 106–402 substituted ‘‘de- velopmental disability as defined in section 15002 of this title’’ for ‘‘developmental disability as defined in section 6001(7) of this title’’. 1996—Subsec. (h). Pub. L. 104–193 struck out par. (1) designation, struck out ‘‘by the Secretary of Housing and Urban Development’’ before ‘‘under section 1436a of this title’’, and struck out par. (2) which read as fol- lows: ‘‘In carrying out any restriction established by the Secretary on the availability of assistance under this subchapter for any alien, the Secretary shall fol- low procedures comparable to the procedures estab- lished in section 1436a of this title.’’ 1992—Subsec. (a). Pub. L. 102–550, § 1012(m), added par. (5). Subsec. (j). Pub. L. 102–550, § 714, added subsec. (j). 1990—Subsec. (b)(4). Pub. L. 101–625, § 702, inserted at end ‘‘The temporary absence of a child from the home due to placement in foster care should not be consid- ered in considering family composition and family size.’’ Subsec. (e). Pub. L. 101–625, § 703, inserted after third sentence ‘‘The Secretary shall pay the same rate of in- terest on escrowed funds as is required to be paid on escrowed funds held by other lenders in any State where State law requires payment of interest on escrowed funds, subject to appropriations to the extent that additional budget authority is necessary to carry out this sentence.’’ 1988—Subsec. (b)(3). Pub. L. 100–242, § 316(a), sub- stituted ‘‘has a developmental disability as defined in section 6001(7) of this title’’ for ‘‘is a developmentally disabled individual as defined in section 6001(7) of this title’’. Subsec. (b)(4). Pub. L. 100–242, § 302(b)(1), inserted pro- visions at end relating to maximum income levels es- tablished for families and persons in the Virgin Islands to be not less than the highest such levels established for families and persons in American Samoa, Guam, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands. Subsec. (e). Pub. L. 100–242, § 303, amended subsec. (e) generally. Prior to amendment, subsec. (e) read as fol- lows: ‘‘The Secretary may establish procedures where- by borrowers under this subchapter may make periodic payments for the purpose of taxes, insurance, and such other necessary expenses as the Secretary may deem appropriate. Such payments shall be disbursed by the Secretary at the appropriate time or times for the pur- poses for which such payments are made, and after Oc- tober 1, 1977, if the prepayments made by the borrower are not sufficient to pay the amount due, advances may be made by the Secretary to pay these costs in full, which advances shall be charged to the account of the borrower and bear interest and be payable in a timely fashion not to exceed two years, as determined by the Secretary. The Secretary shall notify a borrower in writing when his loan payments are delinquent.’’ Subsec. (h). Pub. L. 100–242, § 302(a), added subsec. (h). Subsec. (i). Pub. L. 100–242, § 315, added subsec. (i). 1986—Subsec. (b)(6). Pub. L. 99–272 substituted ‘‘or was considered an eligible recipient under chapter 67 of title 31 prior to the repeal of such chapter’’ for ‘‘or under chapter 67 of title 31’’. 1984—Subsec. (b)(4). Pub. L. 98–479, § 105(a), struck out ‘‘by the Secretary of Housing and Urban Development’’ before ‘‘under the United States Housing Act of 1937.’’ Subsec. (b)(6). Pub. L. 98–479, § 203(d)(3), substituted ‘‘chapter 67 of title 31’’ for ‘‘the State and Local Fiscal Assistance Act of 1972 (Public Law 92–512)’’. Page 4744 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1471 1983—Subsec. (b)(4). Pub. L. 98–181, § 502(a), amended par. (4) generally, substituting definition of low and very low-income families or persons as those whose in- comes do not exceed levels established by the Secretary under the United States Housing Act of 1937 for defini- tion of persons of low income as those whose incomes do not exceed 80 per centum of the area median income, except when it is impracticable to use such median in- come or variations are necessary because of other fac- tors. Subsec. (b)(5). Pub. L. 98–181, § 502(b), amended par. (5) generally, substituting definition of income and ad- justed income as having the meanings given by sections 3(b)(4) and 3(b)(5) of the United States Housing Act of 1937 for definition of income as income from all sources of each household member, as determined in accord- ance with criteria prescribed by the Secretary. 1980—Subsec. (a)(2). Pub. L. 96–399, § 507(a), inserted reference to persons residing in reservations or villages of Indian tribes. Subsec. (b)(6) to (8). Pub. L. 96–399, § 506, added pars. (6) to (8). Subsec. (c). Pub. L. 96–399, § 507(h), inserted ‘‘or Indian tribe’’ after ‘‘local public agency’’ in second sentence. Subsec. (g). Pub. L. 96–399, § 512, added subsec. (g). 1979—Subsec. (a)(4). Pub. L. 96–153, § 506, redesignated former subpar. (B) as (B)(i) and (ii), and in subpar. (B)(i) as so redesignated, inserted reference to circumstances beyond the applicant’s control, and in subpar. (B)(ii) as so redesignated, substituted reference to deprivation of decent, safe, and sanitary dwelling for reference to con- tinuing hardship, and struck out subpar. (C) which au- thorized refinancing indebtedness provided the indebt- edness was incurred at least 5 years prior to the appli- cation for assistance. Subsec. (b)(4), (5). Pub. L. 96–153, § 502(b), added pars. (4) and (5). 1978—Subsec. (f). Pub. L. 95–619 added subsec. (f). 1977—Subsec. (a)(3). Pub. L. 95–128, § 507(a)(1), sub- stituted ‘‘elderly or handicapped persons or families’’ for ‘‘elderly persons’’. Subsec. (b)(3). Pub. L. 95–128, § 507(b), substituted defi- nition of ‘‘elderly or handicapped persons or families’’ for prior definition of ‘‘elderly persons’’ as persons who are 62 years of age or over. Subsec. (c)(1). Pub. L. 95–128, § 507(a)(2), substituted ‘‘the applicant is an elderly or handicapped person or family in a rural area without an adequate dwelling or related facility for its own use’’ for ‘‘he is an elderly person in a rural area without an adequate dwelling or related facilities for his own use’’. Subsec. (e). Pub. L. 95–128, § 503, substituted as a sec- ond sentence ‘‘Such payments shall be disbursed by the Secretary at the appropriate time or times for the pur- poses for which such payments are made, and after Oc- tober 1, 1977, if the prepayments made by the borrower are not sufficient to pay the amount due, advances may be made by the Secretary to pay these costs in full, which advances shall be charged to the account of the borrower and bear interest and be payable in a timely fashion not to exceed two years, as determined by the Secretary’’ for ‘‘Such payments shall be held in escrow by the Secretary and paid out by him at the appro- priate time or times for the purposes for which such payments are made’’. 1974—Subsec. (a)(1). Pub. L. 93–383, § 501, inserted ref- erences to the territories and possessions of the United States and the Trust Territory of the Pacific Islands. Subsec. (a)(4)(B). Pub. L. 93–383, § 502(1), inserted pro- visions relating to combining of indebtedness with a loan for improvement, rehabilitation, or repairs. Subsec. (a)(4)(C). Pub. L. 93–383, § 502(2), substituted provisions relating to incursion of indebtedness by the applicant at least five years prior to his applying under this clause for provisions relating to indebtedness not held or insured by the United States or any agency. Subsec. (a)(4)(D). Pub. L. 93–383, § 502(2), struck out subpar. (D) which related to indebtedness incurred prior to enactment of clause. Subsec. (b)(2). Pub. L. 93–383, § 503, substituted ‘‘this subchapter’’ for ‘‘sections 1472 and 1474 of this title’’. Subsec. (c). Pub. L. 93–383, § 520, inserted provisions relating to applications of a State or local public agen- cy. Subsec. (e). Pub. L. 93–383, § 505(a), added subsec. (e). 1970—Subsec. (b)(2). Pub. L. 91–609 substituted ‘‘sec- tions 1472 and 1473 of this title, the terms ‘owner’ and ‘mortgage’ shall be deemed to include, respectively, the lessee of’’ for ‘‘this subchapter, the terms ‘owner’, ‘farm’, and ‘mortgage’ shall be deemed to include, re- spectively, the lessee of, the land included in’’. The words ‘‘, the land included in’’ were improvidently omitted. 1966—Subsec. (a)(1) to (3). Pub. L. 89–754, § 801, struck out ‘‘previously occupied’’ before ‘‘buildings and land’’ in cl. (1), ‘‘buildings and the purchase of land’’ in cl. (2), and ‘‘dwellings and related facilities’’ in cl. (3). Subsec. (a)(4). Pub. L. 89–754, § 807(a), added cl. (4). Subsec. (c)(1). Pub. L. 89–754, § 807(b), inserted as a condition of eligibility that the applicant be the owner of a farm or other real estate in a rural area who needs refinancing of indebtedness described in subsec. (a)(4) of this section. 1965—Subsec. (a). Pub. L. 89–117, § 1001(a), authorized the extension of formal assistance to owners of farms to purchase previously occupied buildings and land con- stituting a minimum adequate site, to owners of other real estate in rural areas for the construction, improve- ment, alteration, or repair of dwellings, related facili- ties, and farm buildings, and to rural residents for such purposes and for the purchase of previously occupied buildings and the purchase of land constituting a min- imum adequate site. Subsec. (c). Pub. L. 89–117, § 1001(b), inserted ‘‘or a rural resident’’ in cl. (1) after ‘‘or that he is the owner of other real estate in a rural area’’. 1962—Subsec. (a)(3). Pub. L. 87–723, § 4(a)(1)(A), added cl. (3). Subsec. (b)(3). Pub. L. 87–723, § 4(a)(1)(B), added par. (3). Subsec. (c)(1). Pub. L. 87–723, § 4(a)(1)(C), inserted pro- visions requiring the applicant for assistance to show in the alternative that he is an elderly person in a rural area without an adequate dwelling or related facilities for his own use. 1961—Subsec. (a). Pub. L. 87–70, § 803(a), authorized as- sistance to owners of other real estate in rural areas to enable them to provide dwellings and related facilities for their own use and buildings adequate for their farm- ing operations. Subsec. (b). Pub. L. 87–70, § 801(a), designated existing provisions as par. (1) and added par. (2). Subsec. (c). Pub. L. 87–70, § 803(b), permitted the appli- cant to show that he is the owner of other real estate in a rural area without an adequate dwelling or related facilities for his own use or buildings adequate for his farming operations. Subsec. (d). Pub. L. 87–70, § 803(c), added subsec. (d). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1988 AMENDMENT Pub. L. 100–242, title III, § 302(b)(2), Feb. 5, 1988, 101 Stat. 1894, provided that: ‘‘The amendment made by paragraph (1) [amending this section] shall be applica- ble to any determination of eligibility for assistance under title V of the Housing Act of 1949 [this sub- chapter] made on or after the date of the enactment of this Act [Feb. 5, 1988].’’ EFFECTIVE DATE OF 1986 AMENDMENT Amendment by Pub. L. 99–272 effective Oct. 18, 1986, see section 14001(e) of Pub. L. 99–272. PERFORMANCE GOALS FOR FARMERS HOME ADMINISTRATION Pub. L. 102–550, title IX, § 925(b), Oct. 28, 1992, 106 Stat. 3885, provided that: ‘‘(1) IN GENERAL.—The Secretary of Agriculture may establish performance goals for the major housing pro- Page 4745 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1472 grams of the Farmers Home Administration in order to measure progress towards meeting the objectives of na- tional housing policy. ‘‘(2) FORM OF GOALS.—The performance goals referred to in paragraph (1) shall be expressed in terms suffi- cient to measure progress. ‘‘(3) REPORT.—The Secretary of Agriculture shall pre- pare a report to the Congress on the progress made in attaining the performance goals for each program, cit- ing the actual results achieved in such program for the previous year. ‘‘(4) FAILURE TO MEET GOALS.—If a performance stand- ard or goal has not been met, the report under para- graph (3) shall include an explanation of why the goal was not met, propose plans for achieving the perform- ance goal, and recommend any legislative or regulatory changes necessary for achievement of the goal.’’ [For termination, effective May 15, 2000, of provisions of law requiring submittal to Congress of any annual, semiannual, or other regular periodic report listed in House Document No. 103–7 (in which a report required under section 925(b)(3) of Pub. L. 102–550, set out above, is listed in item 12 on page 47), see section 3003 of Pub. L. 104–66, as amended, set out as a note under section 1113 of Title 31, Money and Finance.] Executive Documents TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS For termination of Trust Territory of the Pacific Is- lands, see note set out preceding section 1681 of Title 48, Territories and Insular Possessions. ADMISSION OF ALASKA AND HAWAII TO STATEHOOD Alaska was admitted into the Union on Jan. 3, 1959, on issuance of Proc. No. 3269, Jan. 3, 1959, 24 F.R. 81, 73 Stat. c16, and Hawaii was admitted into the Union on Aug. 21, 1959, on issuance of Proc. No. 3309, Aug. 21, 1959, 24 F.R. 6868, 73 Stat. c74. For Alaska Statehood Law, see Pub. L. 85–508, July 7, 1958, 72 Stat. 339, set out as a note preceding section 21 of Title 48, Territories and Insular Possessions. For Hawaii Statehood Law, see Pub. L. 86–3, Mar. 18, 1959, 73 Stat. 4, set out as a note preceding section 491 of Title 48. § 1472. Loans for housing and buildings on ade- quate farms (a) Terms of loan (1) If the Secretary determines that an appli- cant is eligible for assistance as provided in sec- tion 1471 of this title and that the applicant has the ability to repay in full the sum to be loaned, with interest, giving due consideration to the income and earning capacity of the applicant and his family from the farm and other sources, and the maintenance of a reasonable standard of living for the owner and the occupants of said farm, a loan may be made by the Secretary to said applicant for a period of not to exceed thir- ty-three years from the making of the loan with interest. The Secretary may accept the personal liability of any person with adequate repayment ability who will cosign the applicant’s note to compensate for any deficiency in the applicant’s repayment ability. At the borrower’s option, the borrower may prepay to the Secretary as escrow agent, on terms and conditions prescribed by him, such taxes, insurance, and other expenses as the Secretary may require in accordance with section 1471(e) of this title. (2) The Secretary may extend the period of any loan made under this section if the Sec- retary determines that such extension is nec- essary to permit the making of such loan to any person whose income does not exceed 60 per cen- tum of the median income for the area and who would otherwise be denied such loan because the payments required under a shorter period would exceed the financial capacity of such person. The aggregate period for which any loan may be extended under this paragraph may not exceed 5 years. (3)(A) Notwithstanding any other provision of this subchapter, a loan may be made under this section for the purchase of a dwelling located on land owned by a community land trust, if the borrower and the loan otherwise meet the re- quirements applicable to loans under this sec- tion. (B) For purposes of this paragraph, the term ‘‘community land trust’’ means a community housing development organization as such term is defined in section 12704 of this title (except that the requirements under section 12704(6)(C) of this title and section 12704(6)(D) of this title shall not apply for purposes of this paragraph)— (i) that is not sponsored by a for-profit orga- nization; (ii) that is established to carry out the ac- tivities under clause (iii); (iii) that— (I) acquires parcels of land, held in per- petuity, primarily for conveyance under long-term ground leases; (II) transfers ownership of any structural improvements located on such leased parcels to the lessees; and (III) retains a preemptive option to pur- chase any such structural improvement at a price determined by formula that is designed to ensure that the improvement remains af- fordable to low- and moderate-income fami- lies in perpetuity; and (iv) that has its corporate membership open to any adult resident of a particular geo- graphic area specified in the bylaws of the or- ganization. (b) Provisions of loan instrument The instruments under which the loan is made and the security given shall— (1) provide for security upon the applicant’s equity in the farm or such other security or collateral, if any, as may be found necessary by the Secretary reasonably to assure repay- ment of the indebtedness; (2) provide for the repayment of principal and interest in accordance with schedules and repayment plans prescribed by the Secretary, except that any prepayment of a loan made or insured under section 1484 or 1485 of this title shall be subject to the provisions of subsection (c); (3) except for guaranteed loans, contain the agreement of the borrower that he will, at the request of the Secretary, proceed with dili- gence to refinance the balance of the indebted- ness through cooperative or other responsible private credit sources whenever the Secretary determines, in the light of the borrower’s cir- cumstances, including his earning capacity and the income from the farm, that he is able to do so upon reasonable terms and conditions; (4) be in such form and contain such cov- enants as the Secretary shall prescribe to se-