A bill to restrict the prepayment of loans made under section 202 of the Housing Act of 1959 for housing projects for the elderly and handicapped.

Summary

Amends the Housing Act of 1949 to allow prepayment of a loan for a housing project for elderly or handicapped families only if the Secretary of Housing and Urban Development approves such prepayment after determining that: (1) such prepayment is made out of funds, remaining in the project's revenue fund account at the end of a fiscal year, in excess of estimated expenses for the next 90 days; (2) the project is experiencing financial difficulties endangering its continuation or the project sponsor is unwilling or ineligible to continue as the sponsor and no tenants' organization or area entity is eligible, able, and willing to assume the loan and continue operating the project pursuant to the loan contract; (3) there is no longer a need for the project because comparable housing is available at comparable rental rates; or (4) the prepayment is part of a transaction assuring that the project will continue to operate in the same manner as required under the original loan agreement until the original maturity date of the loan. Directs the Secretary to approve such prepayment only on the condition, with a specified exception, that the original borrower (or such borrower's successors in interest) pay the Secretary the difference between the amount paid for interest and an allowance on the loan and the amount the borrower would have paid if the market rate of interest had been charged on the loan.

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Documents

1 official file

• Introduced in House

  summary · EN · 22 July 1982

  Open at official source

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