Sec. 599G. REHABILITATION DEMONSTRATION GRANT PROGRAM
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## SEC. 599G REHABILITATION DEMONSTRATION GRANT PROGRAM **[**[12 U.S.C. 1701z–1 note](/us/usc/t12/s1701z–1)**]** ###
(a)In General The Secretary of Housing and Urban Development shall, to the extent amounts are provided in appropriation Acts to carry out this section, carry out a program to demonstrate the effectiveness of making grants for rehabilitation of single family housing located within 10 demonstration areas designated by the Secretary. Of the areas designated by the Secretary under this section— ####
(1)6 shall be areas that have primarily urban characteristics; ####
(2)3 shall be areas that are outside of a metropolitan statistical area; and ####
(3)1 shall be an area that has primarily rural characteristics. In selecting areas, the Secretary shall provide for national geographic and demographic diversity. ###
(b)Grantees Grants under the program under this section may be made only to agencies of State and local governments and non-profit organizations operating within the demonstration areas. ###
(c)Selection Criteria In selecting among applications for designation of demonstration areas and grants under this section, the Secretary shall consider— ####
(1)the extent of single family residences located in the proposed area that have rehabilitation needs; ####
(2)the ability and expertise of the applicant in carrying out the purposes of the demonstration program, including the availability of qualified housing counselors and contractors in the proposed area willing and able to participate in rehabilitation activities funded with grant amounts; ####
(3)the extent to which the designation of such area and the grant award would promote affordable housing opportunities; ####
(4)the extent to which selection of the proposed area would have a beneficial effect on the neighborhood or community in the area and on surrounding areas; ####
(5)the extent to which the applicant has demonstrated that grant amounts will be used to leverage additional public or private funds to carry out the purposes of the demonstration program; ####
(6)the extent to which lenders (including local lenders and lenders outside the proposed area) are willing and able to make loans for rehabilitation activities assisted with grant funds; and ####
(7)the extent to which the application provides for the involvement of local residents in the planning of rehabilitation activities in the demonstration area. ###
(d)Use of Grant Funds Funds from grants made under this section may be used by grantees— ####
(1)to subsidize interest on loans, over a period of not more than 5 years from the origination date of the loan, made after the date of the enactment of this Act for rehabilitation of any owner-occupied 1- to 4-family residence, including the payment of interest during any period in which a residence is uninhabitable because of rehabilitation activities; ####
(2)to facilitate loans for rehabilitation of 1- to 4-family properties previously subject to a mortgage insured under the National Housing Act that has been foreclosed or for which insurance benefits have been paid, including to establish revolving loan funds, loan loss reserves, and other financial structures; and ####
(3)to provide technical assistance in conjunction with the rehabilitation of owner-occupied 1- to 4-family residences, including counseling, selection contractors, monitoring of work, approval of contractor payments, and final inspection of work. ###
(e)Definition of Rehabilitation For purposes of this section, the term “**rehabilitation**” has the meaning given such term in section 203(k)(2)(B) of the National Housing Act (12 U.S.C. 1709(k)(2)(B)). ###
(f)Authorization of Appropriations There is authorized to be appropriated to the Secretary to carry out this section such sums as may be necessary for each of fiscal years 1999 through 2003. ###
(g)Effective Date This section shall take effect on the date of the enactment of this Act.8 8October 21, 1998.
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- 12 USC 1701z–1
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