Page:United States Statutes at Large Volume 116 Part 2.djvu/487

 PUBLIC LAW 107-217—AUG. 21, 2002 116 STAT. 1269 The Secretary shall use the Fund as a revolving fund to carry out those purposes. Amounts in the Fund not needed for current operation may be invested in bonds or other obligations the Federal Government guarantees as to principal and interest. General expenses of administration of this section may be charged to the Fund. (b) PURPOSE. —To encourage and facilitate the construction or rehabilitation of housing to meet the needs of low- and moderateincome families and individuals, the Secretary may make grants and loans from the Fund, under terms auid conditions the Secretary may prescribe. The grants and loans may be made to nonprofit, limited dividend, or cooperative organizations and public bodies and are for planning and obtaining federally insured mortgage financing or other financial assistance for housing construction or rehabilitation projects for low- and moderate-income families and individuals, in any area of the Appalachian region the Appalachian Regional Commission establishes, under— (1) section 221 of the National Housing Act (12 U.S.C. 17151); (2) section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f); (3) section 515 of the Housing Act of 1949 (42 U.S.C. 1485); or (4) any other law of similar purpose administered by the Secretary or any other department, agency, or instrimientality of the Federal Government or a state government. (c) PROVIDING AMOUNTS TO STATES FOR GRANTS AND LOANS. — The Secretary or the Commission may provide amounts to the States for making grants and loans to nonprofit, limited dividend, or cooperative organizations and public bodies for the purposes for which the Secretary may provide amounts under this section. (d) LOANS. — (1) LIMITATION ON AVAILABLE AMOUNTS. — A loan under subsection (b) shall not be more than 50 percent (or 80 percent for a project to be carried out in a covmty for which a distressed county designation is in effect under section 14526 of this title) of the cost of planning and obtaining financing for a project, including preliminary surveys and euialyses of market needs, preliminary site engineering and architectural fees, site options, application and mortgage commitment fees, legal fees, and construction loan fees and discounts. (2) INTEREST.— A loan shall be made without interest, except that a loan made to an organization established for profit shall bear interest at the prevailing market rate authorized for an insured or guaranteed loan for that type of project. (3) PAYMENT.— The Secretary shall require payment of a loan made under this section, under terms and conditions the Secretary may require, no later than on completion of the project. Except for a loan to an organization established for profit, the Secretary may cancel any part of a loan made under this section on determining that a permanent loan to finance the project cannot be obtained in an amount adequate for repay- ment of a loan made under this section. (e) GRANTS.— (1) IN GENERAL.—^A grant under this section shall not be made to an organization established for profit and, except as provided in paragraph (2), shall not exceed 50 percent (or 80 percent for a project to be carried out in a county for

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