Page:United States Statutes at Large Volume 112 Part 5.djvu/585

 PUBLIC LAW 105-368—NOV. 11, 1998 112 STAT. 3343 "(2) A guarantee of a loan under subsection (a) shall be in an amount that is not less than the amount necessary to sell the loan in a commercial market. "(3) Not more than an aggregate amount of $100,000,000 in loans may be guaranteed under subsection (a). "(c) A loan may not be guaranteed under this subchapter unless, before closing such loan, the Secretary has approved the loan. "(d)(1) The Secretary shall enter into contracts with a qualified Contracts. nonprofit organization, or other qualified organization, that has experience in underwriting transitional housing projects to obtain advice in carrying out this subchapter, including advice on the terms and conditions necessary for a loan that meets the requirements of section 3773 of this title. "(2) For purposes of paragraph (1), a nonprofit organization is an organization that is described in paragraph (3) or (4) of subsection (c) of section 501 of the Internal Revenue Code of 1986 and is exempt from tax under subsection (a) of such section. "(e) The Secretary may carry out this subchapter in advance of the issuance of regulations for such purpose. "(f) The Secretary may guarantee loans under this subchapter notwithstanding any requirement for prior appropriations for such purpose under any provision of law. "§ 3773. Requirements "(a) A loan referred to in section 3772 of this title meets the requirements of this subchapter if each of the following requirements is met: "(1) The loan— "(A) is for— "(i) construction of, rehabilitation of, or acquisition of land for a multifamily transitional housing project described in subsection (b), or more than one of such purposes; or "(ii) refinancing of an existing loan for such a project; and "(B) may also include additional reasonable amounts for— "(i) financing acquisition of furniture, equipment, supplies, or materials for the project; or "(ii) in the case of a loan made for purposes of subparagraph (A)(i), supplying the organization carry- ing out the project with working capital relative to the project. "(2) The loan is made in connection with funding or the provision of substantial property or services for such project by either a State or local government or a nongovernmental entity, or both. "(3) The maximum loan amount does not exceed the lesser of— "(A) that amount generally approved (utilizing prudent underwriting principles) in the consideration and approval of projects of similar nature and risk so as to assure repay- ment of the loan obligation; and "(B) 90 percent of the total cost of the project. "(4) The loan is of sound value, taking into account the creditworthiness of the entity (and the individual members of the entity) applying for such loan.

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