42 U.S.C. § 1437b : US Code - Section 1437B: Loans and commitments to make loans for low-income housing projects

Search 42 U.S.C. § 1437b : US Code - Section 1437B: Loans and commitments to make loans for low-income housing projects

(a) Authority of Secretary; interest rates; repayment date; use as
security for obligations of public housing agency
The Secretary may make loans or commitments to make loans to
public housing agencies to help finance or refinance the
development, acquisition, or operation of low-income housing
projects by such agencies. Any contract for such loans and any
amendment to a contract for such loans shall provide that such
loans shall bear interest at a rate specified by the Secretary
which shall not be less than a rate determined 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 maturity comparable to the average
maturities of such loans, plus one-eighth of 1 per centum. Such
loans shall be secured in such manner and shall be repaid within
such period not exceeding forty years, or not exceeding forty years
from the date of the bonds evidencing the loan, as the Secretary
may determine. The Secretary may require loans or commitments to
make loans under this section to be pledged as security for
obligations issued by a public housing agency in connection with a
low-income housing project.
(b) Issuance of obligations by Secretary; limitation on amounts;
forms and denominations; terms and conditions; purchase,
establishment of maturities and rates of interest, and sale by
Secretary of the Treasury
The Secretary may issue and have outstanding at any one time
notes and other obligations for purchase by the Secretary of the
Treasury in an amount which will not, unless authorized by the
President, exceed $1,500,000,000. For the purpose of determining
obligations incurred to make loans pursuant to this chapter against
any limitation otherwise applicable with respect to such loans, the
Secretary shall estimate the maximum amount to be loaned at any one
time pursuant to loan agreements then outstanding with public
housing agencies. Such notes or other obligations shall be in such
forms and denominations and shall be subject to such terms and
conditions as may be prescribed by the Secretary with the approval
of the Secretary of the Treasury. The notes or other obligations
issued under this subsection shall have such maturities and bear
such rate or rates of interest as shall be determined by the
Secretary of the Treasury. The Secretary of the Treasury is
authorized and directed to purchase any notes or other obligations
of the Secretary issued hereunder and for such purpose is
authorized to use as a public debt transaction the proceeds from
the sale of any securities issued under chapter 31 of title 31, and
the purposes for which securities may be issued under such chapter
are extended to include any purchases of such obligations. The
Secretary of the Treasury may at any time sell any of the notes or
other obligations acquired by him under this section. All
redemptions, purchases, and sales by the Secretary of the Treasury
of such notes or other obligations shall be treated as public debt
transactions of the United States.
(c) Public and Indian housing financing reforms
(1) At such times as the Secretary may determine, and in
accordance with such accounting and other procedures as the
Secretary may prescribe, each loan made by the Secretary under
subsection (a) of this section that has any principal amount
outstanding or any interest amount outstanding or accrued shall be
forgiven; and the terms and conditions of any contract, or any
amendment to a contract, for such loan with respect to any promise
to repay such principal and interest shall be canceled. Such
cancellation shall not affect any other terms and conditions of
such contract, which shall remain in effect as if the cancellation
had not occurred. This paragraph shall not apply to any loan the
repayment of which was not to be made using annual contributions,
or to any loan all or part of the proceeds of which are due a
public housing agency from contractors or others.
(2)(A) On April 7, 1986, each note or other obligation issued by
the Secretary to the Secretary of the Treasury pursuant to
subsection (b) of this section, together with any promise to repay
the principal and unpaid interest that has accrued on each note or
obligation, shall be forgiven; and any other term or condition
specified by each such obligation shall be canceled.
(B) On September 30, 1986, and on any subsequent September 30,
each such note or other obligation issued by the Secretary to the
Secretary of the Treasury pursuant to subsection (b) of this
section during the fiscal year ending on such date, together with
any promise to repay the principal and unpaid interest that has
accrued on each note or obligation, shall be forgiven; and any
other term or condition specified by each such obligation shall be
canceled.
(3) Any amount of budget authority (and contract authority) that
becomes available during any fiscal year as a result of the
forgiveness of any loan, note, or obligation under this subsection
shall be rescinded.