42 U.S.C. § 1490a — Loans to provide occupant owned, rent-

Page 4793 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1490a 1 See References in Text note below. this section [amending this section] shall apply with respect to classification of rural areas for fiscal year 1991 and any fiscal year thereafter.’’ § 1490a. Loans to provide occupant owned, rent- al, and cooperative housing for low and mod- erate income, elderly or handicapped per- sons or families (a) Interest rates; additional assistance; pay- ments to owners; rent limitations (1)(A) Notwithstanding the provisions of sec- tions 1472, 1487(a) and 1485 of this title, loans to persons of low or moderate income under section 1472 or 1487(a)(1) 1 of this title, loans under sec- tion 1485 of this title to provide rental or cooper- ative housing and related facilities for persons and families of low or moderate income or elder- ly or handicapped persons or families and loans under section 1490f of this title to provide condo- minium housing for persons and families of low or moderate income, shall bear interest at a rate prescribed by the Secretary at not less than a rate determined by the Secretary of the Treas- ury upon the request of the Secretary 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. Any loan guaranteed under this subchapter shall bear interest at such rate as may be agreed upon by the borrower and the lender. (B) From the interest rate so determined, the Secretary may provide the borrower with assist- ance in the form of credits so as to reduce the effective interest rate to a rate not less than 1 per centum per annum for such periods of time as the Secretary may determine for applicants described in subparagraph (A) if without such assistance such applicants could not afford the dwelling or make payments on the indebtedness of the rental or cooperative housing. In the case of assistance provided under this subparagraph with respect to a loan under section 1472 of this title, the Secretary may not reduce, cancel, or refuse to renew the assistance due to an increase in the adjusted income of the borrower if the re- duction, cancellation, or nonrenewal will cause the borrower to be unable to reasonably afford the resulting payments required under the loan. (C) For persons of low income under section 1472 or 1487(a) of this title who the Secretary de- termines are unable to afford a dwelling with the assistance provided under subparagraph (B) and when the Secretary determines that as- sisted rental housing programs (as authorized under this subchapter, the National Housing Act [12 U.S.C. 1701 et seq.], and the United States Housing Act of 1937 [42 U.S.C. 1437 et seq.]) would be unsuitable in the area in which such persons reside, the Secretary may provide additional as- sistance, pursuant to amounts approved in ap- propriation Acts and for such periods of time as the Secretary may determine, which may be in an amount not to exceed the difference between (i) the amount determined by the Secretary to be necessary to pay the principal indebtedness, interest, taxes, insurance, utilities, and mainte- nance, and (ii) 25 per centum of the income of such applicant. The amount of such additional assistance which may be approved in appropria- tion Acts may not exceed an aggregate amount of $100,000,000. Such additional assistance may not be so approved with respect to any fiscal year beginning on or after October 1, 1981. (D)(i) With respect to borrowers under section 1472 or 1487(a) of this title who have received as- sistance under subparagraph (B) or (C), the Sec- retary shall provide for the recapture of all or a portion of such assistance rendered upon the dis- position or nonoccupancy of the property by the borrower. In providing for such recapture, the Secretary shall make provisions to provide in- centives for the borrower to maintain the prop- erty in a marketable condition. Notwith- standing any other provision of law, any such assistance whenever rendered shall constitute a debt secured by the security instruments given by the borrower to the Secretary to the extent that the Secretary may provide for recapture of such assistance. (ii) In determining the amount recaptured under this subparagraph with respect to any loan made pursuant to section 1472(a)(3) of this title for the purchase of a dwelling located on land owned by a community land trust, the Sec- retary shall determine any appreciation of the dwelling based on any agreement between the borrower and the community land trust that limits the sale price or appreciation of the dwelling. (E) Except for Federal or State laws relating to taxation, the assistance rendered to any bor- rower under subparagraphs (B) and (C) shall not be considered to be income or resources for any purpose under any Federal or State laws includ- ing, but not limited to, laws relating to welfare and public assistance programs. (F) Loans subject to the interest rates and as- sistance provided under this paragraph (1) may be made only when the Secretary determines the needs of the applicant for necessary housing cannot be met with financial assistance from other sources including assistance under the Na- tional Housing Act [12 U.S.C. 1701 et seq.] and the United States Housing Act of 1937 [42 U.S.C. 1437 et seq.]. (G) Interest on loans under section 1472 or 1487(a) of this title to victims of a natural dis- aster shall not exceed the rate which would be applicable to such loans under section 1472 of this title without regard to this section. (2)(A) The Secretary shall make and insure loans under this section and sections 1484, 1485, and 1487 of this title to provide rental or cooper- ative housing and related facilities for persons and families of low income in multifamily hous- ing projects, and shall make, and contract to make, assistance payments to the owners of such rental, congregate, or cooperative housing in order to make available to low-income occu- pants of such housing rentals at rates commen- surate to income and not exceeding the highest of (i) 30 per centum of monthly adjusted income, (ii) 10 per centum of monthly income, or (iii) if the person or family is receiving payments for welfare assistance from a public agency, the por- tion of such payments which is specifically des- ignated by such agency to meet the person’s or Page 4794 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1490a family’s housing costs. Any rent or contribution of any recipient shall not increase as a result of this section or any other provision of Federal law or regulation by more than 10 per centum during any twelve-month period, unless the in- crease above 10 per centum is attributable to in- creases in income which are unrelated to this subsection or other law or regulation. (B) The owner of any project assisted under this paragraph or paragraph (5) shall be required to provide at least annually a budget of oper- ating expenses and record of tenants’ income. The budget (and the income, in the case of a project assisted under this paragraph) shall be used to determine the amount of the assistance for each project. (C) The project owner shall accumulate, safe- guard, and periodically pay to the Secretary any rental charges collected in excess of basic rental charges as established by the Secretary in con- formity with subparagraph (A). These funds may be credited to the appropriation and used by the Secretary for making such assistance payments through the end of the next fiscal year. Notwith- standing the preceding sentence, excess funds received from tenants in projects financed under section 1485 of this title during a fiscal year shall be available during the next succeeding fis- cal year, together with funds provided under subparagraph (D), to the extent approved in ap- propriations Acts, to make assistance payments to reduce rent overburden on behalf of tenants of any such project whose rents exceed the lev- els referred to in subparagraph (A). In providing assistance to relieve rent overburden, the Sec- retary shall provide assistance with respect to very low-income and low-income families to re- duce housing rentals to the levels specified in subparagraph (A). (D) The Secretary, to the extent approved in appropriation Acts, may enter into rental assist- ance contracts aggregating not more than $398,000,000 in carrying out subparagraph (A) with respect to the fiscal year ending on Sep- tember 30, 1982. (E) In order to assist elderly or handicapped persons or families who elect to live in a shared housing arrangement in which they benefit as a result of sharing the facilities of a dwelling with others in a manner that effectively and effi- ciently meets their housing needs and thereby reduces their cost of housing, the Secretary shall permit rental assistance to be used by such persons or families if the shared housing ar- rangement is in a single-family dwelling. For the purpose of this subparagraph, the Secretary shall prescribe minimum habitability standards to assure decent, safe, and sanitary housing for such families while taking into account the spe- cial circumstances of shared housing. (3)(A) In the case of loans under sections 1484 and 1485 of this title approved prior to the effec- tive date of this paragraph with respect to which rental assistance is provided, the rent for ten- ants receiving such assistance shall not exceed the highest of (i) 30 per centum of monthly ad- justed income, (ii) 10 per centum of monthly in- come, or (iii) if the person or family is receiving payments for welfare assistance from a public agency, the portion of such payments which is specifically designated by such agency to meet the person’s or family’s housing costs. (B) In the case of a section 1485 loan approved prior to the effective date of this paragraph with respect to which interest credits are provided, the tenant’s rent shall not exceed the highest of (i) 30 per centum of monthly adjusted income, (ii) 10 per centum of monthly income, or (iii) if the person or family is receiving payments for welfare assistance from a public agency, the por- tion of such payments which is specifically des- ignated by such agency to meet the person’s or family’s housing costs, or, where no rental as- sistance authority is available, the rent level es- tablished on a basis of a 1 per centum interest rate on debt service. (C) No rent for a unit financed under section 1484 or 1485 of this title shall be increased as a result of this subsection or other provision of Federal law or Federal regulation by more than 10 per centum in any twelve-month period, un- less the increase above 10 per centum is attrib- utable to increases in income which are unre- lated to this subsection or other law, or regula- tion. (4) In the case of a loan with respect to the purchase of a manufactured home with respect to which rental assistance is provided, the monthly payment for principal and interest on the manufactured home and for lot rental and utilities shall not exceed the highest of (A) 30 per centum of monthly adjusted income, (B) 10 per centum of monthly income, or (C) if the per- son or family is receiving payments for welfare assistance from a public agency, the portion of such payments which is specifically designated by such agency to meet the person’s or family’s housing costs. (5) OPERATING ASSISTANCE FOR MIGRANT FARM- WORKER PROJECTS.— (A) AUTHORITY.—In the case of housing (and related facilities) for migrant farmworkers provided or assisted with a loan under section 1484 of this title or a grant under section 1486 of this title, the Secretary may, at the request of the owner of the project, use amounts pro- vided for rental assistance payments under paragraph (2) to provide assistance for the costs of operating the project. Any tenant or unit assisted under this paragraph may not re- ceive rental assistance under paragraph (2). (B) AMOUNT.—In any fiscal year, the assist- ance provided under this paragraph for any project shall not exceed an amount equal to 90 percent of the operating costs for the project for the year, as determined by the Secretary. The amount of assistance to be provided for a project under this paragraph shall be an amount that makes units in the project avail- able to migrant farmworkers in the area of the project at rates not exceeding 30 percent of the monthly adjusted incomes of such farm- workers, based on the prevailing incomes of such farmworkers in the area. (C) SUBMISSION OF INFORMATION.—The owner of a project assisted under this paragraph shall be required to provide to the Secretary, at least annually, a budget of operating expenses and estimated rental income, which the Sec- retary may use to determine the amount of as- sistance for the project. (D) DEFINITIONS.—For purposes of this para- graph, the following definitions shall apply: Page 4795 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1490a (i) The term ‘‘migrant farmworker’’ has the same meaning given such term in sec- tion 1486(k)(7) of this title. (ii) The term ‘‘operating cost’’ means ex- penses incurred in operating a project, in- cluding expenses for— (I) administration, maintenance, repair, and security of the project; (II) utilities, fuel, furnishings, and equip- ment for the project; and (III) maintaining adequate reserve funds for the project. (b) Location in rural areas; inclusion of qualified nonrural residents who will become rural residents Housing and related facilities provided with loans described in subsection (a) shall be located in rural areas; and applicants eligible for such loans under section 1472, 1487(a)(1),1 or 1490f(a) of this title, or for occupancy of housing provided with such loans under section 1485 or 1490f(c) of this title, shall include otherwise qualified nonrural residents who will become rural resi- dents. (c) Reimbursement of Rural Housing Insurance Fund There shall be reimbursed to the Rural Hous- ing Insurance Fund by annual appropriations (1) the amounts by which nonprincipal payments made from the fund during each fiscal year to the holders of insured loans described in sub- section (a)(1) exceed interest due from the bor- rowers during each year, and (2) the amount of assistance payments described in subsections (a)(2) and (a)(5). There are authorized to be ap- propriated to the Rural Housing Insurance Fund such sums as may be necessary to reimburse such fund for the amount of assistance pay- ments described in subsection (a)(1)(C). The Sec- retary may from time to time issue notes to the Secretary of the Treasury under section 1487(h) and of this title and section 1490f of this title to obtain amounts equal to such unreimbursed payments, pending the annual reimbursement by appropriation. (d) Rental assistance contract authority; pre- conditions, limitations, etc. (1) In utilizing the rental assistance payments authority pursuant to subsection (a)(2)— (A) the Secretary shall make such assistance available in existing projects for units occu- pied by low income families or persons to ex- tend expiring contracts or to provide addi- tional assistance when necessary to provide the full amount authorized pursuant to exist- ing contracts; (B) any such authority remaining after car- rying out subparagraph (A) shall be used in projects receiving commitments under section 1484, 1485, or 1486 of this title after fiscal year 1983 for contracts to assist very low-income families or persons to occupy the units in such projects, except that not more than 5 percent of the units assisted may be occupied by low income families or persons who are not very low-income families or persons; and (C) any such authority remaining after car- rying out subparagraphs (A) and (B) may be used to provide further assistance to existing projects under section 1484, 1485, or 1486 of this title. (2) The Secretary shall transfer rental assist- ance contract authority under this section from projects where such authority is unused after initial rentup and not needed because of a lack of eligible tenants in the area to projects where such authority is needed. (e) Increases in rent or contribution of any re- cipient Any rent or contribution of any recipient or any tenant in a project assisted under sub- section (a)(5) shall not increase as a result of this section, any amendment thereto, or any other provision of Federal law or regulation by more than 10 per centum during any twelve- month period, unless the increase above 10 per centum is attributable to increases in income which are unrelated to this subsection or other law or regulation. (July 15, 1949, ch. 338, title V, § 521, as added Pub. L. 90–448, title X, § 1001, Aug. 1, 1968, 82 Stat. 551; amended Pub. L. 93–383, title V, §§ 514(a), (b), 516(c), Aug. 22, 1974, 88 Stat. 696, 698; Pub. L. 94–375, § 25(a), Aug. 3, 1976, 90 Stat. 1078; Pub. L. 95–128, title V, §§ 502(d), 507(a)(4), (5), 511, Oct. 12, 1977, 91 Stat. 1139, 1140, 1142; Pub. L. 95–557, title V, §§ 506(a), 507, Oct. 31, 1978, 92 Stat. 2112, 2113; Pub. L. 96–153, title V, §§ 501(c), 502(a), 504, Dec. 21, 1979, 93 Stat. 1133–1135; Pub. L. 96–372, § 6(d), Oct. 3, 1980, 94 Stat. 1364; Pub. L. 96–399, title V, §§ 501(e), (f), 505, Oct. 8, 1980, 94 Stat. 1668, 1669; Pub. L. 97–35, title III, §§ 351(d), 352, Aug. 13, 1981, 95 Stat. 421; Pub. L. 98–181, title I [title V, §§ 516, 517(a)–(c), (e)], Nov. 30, 1983, 97 Stat. 1247–1249; Pub. L. 98–479, title I, § 105(h), Oct. 17, 1984, 98 Stat. 2227; Pub. L. 100–242, title III, §§ 309, 316(d), Feb. 5, 1988, 101 Stat. 1896, 1898; Pub. L. 101–625, title VII, § 716, Nov. 28, 1990, 104 Stat. 4296; Pub. L. 102–550, title VII, § 702(b), Oct. 28, 1992, 106 Stat. 3834; Pub. L. 105–276, title V, § 599C(e)(1), (e)(2)(D)–(F), Oct. 21, 1998, 112 Stat. 2661, 2663; Pub. L. 106–569, title VII, § 706, Dec. 27, 2000, 114 Stat. 3015.) Editorial Notes REFERENCES IN TEXT Section 1487(a) of this title, referred to in subsecs. (a)(1)(A) and (b), was amended by Pub. L. 98–181, title I [title V, § 514(a)(1)], Nov. 30, 1983, 98 Stat. 1247, and, as so amended, does not contain a par. (1). The National Housing Act, referred to in subsec. (a)(1)(C), (F), is act June 27, 1934, ch. 847, 48 Stat. 1246, which is classified principally to chapter 13 (§ 1701 et seq.) of Title 12, Banks and Banking. For complete clas- sification of this Act to the Code, see section 1701 of Title 12 and Tables. The United States Housing Act of 1937, referred to in subsec. (a)(1)(C), (F), is act Sept. 1, 1937, ch. 896, as re- vised generally 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 clas- sification of this Act to the Code, see Short Title note set out under section 1437 of this title and Tables. The effective date of this paragraph, referred to in subsec. (a)(3)(A), (B), is six months after Nov. 30, 1983, or upon the earlier promulgation of implementing reg- ulations by the Secretary. See section 517(f) of Pub. L. 98–181, set out as an Effective Date of 1983 Amendment note below. Page 4796 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1490a AMENDMENTS 2000—Subsec. (a)(5)(A). Pub. L. 106–569 substituted ‘‘Any tenant or unit assisted’’ for ‘‘Any project as- sisted’’ in last sentence. 1998—Subsec. (a)(2)(B). Pub. L. 105–276, § 599C(e)(2)(D), inserted ‘‘or paragraph (5)’’ after ‘‘this paragraph’’ and substituted ‘‘. The budget (and the income, in the case of a project assisted under this paragraph) shall be used to determine the amount of the assistance for each project.’’ for ‘‘which shall be used to determine the amount of assistance for each project.’’ Subsec. (a)(5). Pub. L. 105–276, § 599C(e)(1), added par. (5). Subsec. (c)(2). Pub. L. 105–276, § 599C(e)(2)(E), sub- stituted ‘‘subsections (a)(2) and (a)(5)’’ for ‘‘subsection (a)(2)’’. Subsec. (e). Pub. L. 105–276, § 599C(e)(2)(F), inserted ‘‘or any tenant in a project assisted under subsection (a)(5)’’ after ‘‘recipient’’. 1992—Subsec. (a)(1)(D). Pub. L. 102–550 designated ex- isting provisions as cl. (i) and added cl. (ii). 1990—Subsec. (a)(2)(C). Pub. L. 101–625 inserted at end ‘‘Notwithstanding the preceding sentence, excess funds received from tenants in projects financed under sec- tion 1485 of this title during a fiscal year shall be avail- able during the next succeeding fiscal year, together with funds provided under subparagraph (D), to the ex- tent approved in appropriations Acts, to make assist- ance payments to reduce rent overburden on behalf of tenants of any such project whose rents exceed the lev- els referred to in subparagraph (A). In providing assist- ance to relieve rent overburden, the Secretary shall provide assistance with respect to very low-income and low-income families to reduce housing rentals to the levels specified in subparagraph (A).’’ 1988—Subsec. (a)(1)(A). Pub. L. 100–242, § 316(d)(1), struck out before period at end ‘‘, except that such loans to provide housing and related facilities for per- sons or families of moderate income shall bear interest at the rate established by the Secretary of Housing and Urban Development under section 1709–1 of title 12 with respect to maximum interest rates established for mortgages insured under section 1709(b) of title 12 if the Secretary determines that the borrower can afford such higher interest charges.’’ Subsec. (a)(1)(B). Pub. L. 100–242, § 309, inserted at end ‘‘In the case of assistance provided under this subpara- graph with respect to a loan under section 1472 of this title, the Secretary may not reduce, cancel, or refuse to renew the assistance due to an increase in the adjusted income of the borrower if the reduction, cancellation, or nonrenewal will cause the borrower to be unable to reasonably afford the resulting payments required under the loan.’’ Subsec. (a)(2)(A). Pub. L. 100–242, § 316(d)(2), sub- stituted comma for semicolon at end of cl. (ii). 1984—Subsec. (d)(1). Pub. L. 98–479 in amending par. (1) generally, inserted provisions preceding subpar. (A), in subpar. (A) substituted provisions authorizing Sec- retary to make assistance available in existing projects for former provisions which required Secretary to first assure that expiring contracts are extended for those units occupied by persons or families of low income and that additional assistance is used when necessary to provide the full amount authorized pursuant to exist- ing contracts, in subpar. (B) substituted ‘‘any such au- thority remaining after carrying out subparagraph (A)’’ for ‘‘Remaining funds’’ and inserted provisions relating to persons who are not very low-income families or per- sons, and in subpar. (C) substituted provisions that re- maining authority may be used to provide assistance under sections 1484 to 1486 of this title for former provi- sions which authorized the Secretary to use remaining funds for existing projects for very low-income families except that 5 per centum of the units assisted may be occupied by families and persons of low income. 1983—Subsec. (a)(2)(A). Pub. L. 98–181, § 517(c), sub- stituted provisions setting forth factors applicable to determination of maximum amount, for provisions set- ting forth maximum amount as 25 per centum of in- come, and inserted provisions relating to limitations on increases of any rent or contribution of recipient. Pub. L. 98–181, § 517(a), struck out provisions requiring assistance payments to be made on a unit basis and maximum amount of such payments, and provisions re- specting priority for approval of projects under this paragraph. Subsec. (a)(2)(E). Pub. L. 98–181, § 516, added subpar. (E). Subsec. (a)(3), (4). Pub. L. 98–181, § 517(b), added pars. (3) and (4). Subsecs. (d), (e). Pub. L. 98–181, § 517(e), added subsecs. (d) and (e). 1981—Subsec. (a)(1)(B). Pub. L. 97–35, § 352, substituted ‘‘may provide’’ for ‘‘shall provide’’. Subsec. (a)(2)(D). Pub. L. 97–35, § 351(d), substituted ‘‘$398,000,000’’ for ‘‘$493,000,000’’, and substituted provi- sions relating to fiscal year ending Sept. 30, 1982, for provisions relating to fiscal year ending Sept. 30, 1981. 1980—Subsec. (a)(1)(B). Pub. L. 96–399, § 505, sub- stituted ‘‘the Secretary shall provide’’ for ‘‘the Sec- retary may provide’’. Subsec. (a)(1)(C). Pub. L. 96–399, § 501(f), substituted provisions limiting the amount of additional assistance which may be approved to $100,000,000, for provisions limiting such amounts to $985,000,000 for contracts en- tered into with respect to fiscal year 1979 and $500,000,000 for contracts entered into through Oct. 15, 1980, and substituted ‘‘with respect to any fiscal year beginning on or after October 1, 1981’’ for ‘‘after Octo- ber 15, 1980’’. Pub. L. 96–372 substituted ‘‘through October 15, 1980’’ for ‘‘with respect to fiscal year 1980’’ and in last sen- tence ‘‘after October 15, 1980’’ for ‘‘with respect to any fiscal year after fiscal year 1980’’. Subsec. (a)(2)(D). Pub. L. 96–399, § 501(e), added subpar. (D). 1979—Subsec. (a)(1)(A). Pub. L. 96–153, § 502(a), in- serted exception that loans to provide housing and re- lated facilities for persons or families of moderate in- come shall bear interest at the rate established by the Secretary under certain provisions of title 12. Subsec. (a)(1)(C). Pub. L. 96–153, § 501(c)(1), inserted provisions that the amount of such additional assist- ance which may be approved in appropriation acts may not exceed an aggregate amount of $985,000,000 for con- tracts entered into with respect to fiscal year 1979 and an aggregate amount of $500,000,000 for contracts en- tered into with respect to fiscal year 1980 and that such additional assistance may not be so approved with re- spect to any fiscal year after fiscal year 1980. Subsec. (a)(1)(H). Pub. L. 96–153, § 501(c)(3), repealed subpar. (H) which provided that the aggregate principal amount of loans made to borrowers receiving assist- ance pursuant to subpar. (C) shall not exceed $440,000,000. Subsec. (a)(2)(A). Pub. L. 96–153, § 504, substituted ‘‘as- sistance payments to the owners of’’ for ‘‘assistance payments to public and private nonprofit owners of’’, ‘‘70 per centum’’ for ‘‘20 per centum’’ in two places, ‘‘by a loan under section 1484 of this title to a public or pri- vate nonprofit owner’’ for ‘‘by a loan under section 1484 of this title’’, the first time section 1484 of this title ap- peared in cl. (i), and inserted provisions that in approv- ing projects for assistance under this paragraph, the Secretary shall give priority to projects in which as- sistance is provided to 40 per centum or fewer of the units contained in the project. Subsec. (c). Pub. L. 96–153, § 501(c)(2), inserted author- ization of appropriation to Rural Housing Insurance Fund of such sums as may be necessary to reimburse fund for amount of assistance payments under subsec. (a)(1)(C) of this section. 1978—Subsec. (a)(1)(A) to (H). Pub. L. 95–557, § 506(a), designated existing provisions as par. (1)(A), and in par. (1)(A) as so designated, struck out ‘‘less not to exceed the difference between the adjusted rate determined by the Secretary of the Treasury and 1 per cent per annum: Provided, That such a loan may be made only 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