Sec. 240.
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For fiscal years 2025 and 2026, to the extent and in such amounts as provided in advance in appropriations Acts, the Secretary may provide direct loans, which may be forgivable, for the purpose of making necessary physical improvements, to owners of multifamily properties that have deficiencies that cause the property to be at risk of physical obsolescence or economic non-viability. Owners of multifamily housing projects that meet each of the following requirements are eligible for loan assistance under this section:
The property has deficiencies that cause the property to be at risk of physical obsolescence or economic non-viability. The actual rents received by the owner of the distressed property would not adequately sustain the debt needed to make necessary physical improvements. Any such additional eligibility criteria as the Secretary determines to be appropriate, including factors that contributed to the property’s distressed state. Each recipient of loan assistance under this section may only use such loan assistance for eligible uses, as determined by the Secretary, that result in the necessary physical improvements to a distressed property to return it to a position of economic viability.
Each recipient of loan assistance under this section shall agree to an extended affordability period for the property that is subject to the loan by extending any existing affordable housing use agreements for an additional 30 years or, if the property is not currently subject to a use agreement establishing affordability requirements, by establishing a use agreement for 30 years. The Secretary may establish additional conditions for loan eligibility provided under this section as the Secretary determines to be appropriate.
As used in this section, the term multifamily housing project means a project consisting of more than four dwelling units assisted, insured, or with a loan held by the Secretary or a State or State agency in part or in whole pursuant to section 8 of the United States Housing Act of 1937 ( 42 U.S.C. 1437f ), not including subsection (o)(13) of such section. The Secretary shall by notice establish such requirements as may be necessary to carry out the provisions of this section.
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U.S. Code