42 U.S.C. § 1490c | Mutual and self-help housing

(a)

Purpose

The purposes of this section are (1) to make financial assistance available on reasonable terms and conditions in rural areas and small towns to needy low-income individuals and their families who, with the benefit of technical assistance and overall guidance and supervision, participate in approved programs of mutual or self-help housing by acquiring and developing necessary land, acquiring building materials, providing their own labor, and working cooperatively with others for the provision of decent, safe, and sanitary dwellings for themselves, their families, and others in the area or town involved, and (2) to facilitate the efforts of both public and private nonprofit organizations providing assistance to such individuals to contribute their technical and supervisory skills toward more effective and comprehensive programs of mutual or self-help housing in rural areas and small towns wherever necessary.

(b)

Contract authority; establishment of Self-Help Housing Land Development Fund; authorization to make loans; conditions of loan

In order to carry out the purposes of this section, the Secretary of Agriculture (in this section referred to as the “Secretary”) is authorized—

(1)

(A)

section 1472 of this title to make grants to, or contract with, public or private nonprofit corporations, agencies, institutions, organizations, Indian tribes, and other associations approved by him, to pay part or all of the costs of developing, conducting, administering, or coordinating effective and comprehensive programs of technical and supervisory assistance which will aid needy low-income individuals and their families in carrying out mutual or self-help housing efforts, including the repair of units financed under that are being held in inventory; and

(B)

section 1490a of this titleProvided to establish the Self-Help Housing Land Development Fund, referred to herein as the Self-Help Fund, to be used by the Secretary as a revolving fund for making loans, on such terms and conditions and in such amounts as he deems necessary, to public or private nonprofit organizations and to Indian tribes for the acquisition and development of land as building sites to be subdivided and sold to families, nonprofit organizations, and cooperatives eligible for assistance under section 1715z or 1715z–1 of title 12 or . Such a loan, with interest at a rate not to exceed 3 percent per annum, shall be repaid within a period not to exceed five years from the making of the loan, or within such additional period as may be authorized by the Secretary in any case as being necessary to carry out the purposes hereof: , That the Secretary may advance funds under this paragraph to organizations receiving assistance under clause (A) to enable them to establish revolving accounts for the purchase of land options and any such advances may bear interest at a rate determined by the Secretary and shall be repaid to the Secretary at the expiration of the period for which the grant to the organization involved was made;

(2)

to make grants to, or contract with, national or regional private nonprofit corporations to provide training and technical assistance to public or private nonprofit corporations, agencies, institutions, organizations, and other associations, including Indian tribes, eligible to receive assistance under this section in order to expand the use of authorities contained in this section and to improve performance; and

(3)

to make loans, on such terms and conditions and in such amounts as he deems necessary, to needy low-income individuals participating in programs of mutual or self-help housing approved by him, for the acquisition and development of land and for the purchase of such other building materials as may be necessary in order to enable them, by providing substantially all of their own labor, and by cooperating with others participating in such programs, to carry out to completion the construction of decent, safe, and sanitary dwellings for such individuals and their families, subject to the following limitations:

(A)

there is reasonable assurance of repayment of the loan;

(B)

the amount of the loan, together with other funds which may be available, is adequate to achieve the purpose for which the loan is made;

(C)

the credit assistance is not otherwise available on like terms or conditions from private sources or through other Federal, State, or local programs;

(D)

the loan bears interest at a rate not to exceed 3 per centum per annum on the unpaid balance of principal, plus such additional charge, if any, toward covering other costs of the loan program as the Secretary may determine to be consistent with its purposes; and

(E)

the loan is repayable within not more than thirty-three years.

(c)

Considerations for financial assistance

In determining whether to extend financial assistance under paragraph (1) or (2) of subsection (b), the Secretary shall take into consideration, among other factors, the suitability of the area within which construction will be carried out to the type of dwelling which can be provided under mutual or self-help housing programs, the extent to which the assistance will facilitate the provision of more decent, safe, and sanitary housing conditions than presently exist in the area, the extent to which the assistance will be utilized efficiently and expeditiously, the extent to which the assistance will effect an increase in the standard of living of low-income individuals participating in the mutual or self-help housing program, and whether the assistance will fulfill a need in the area which is not otherwise being met through other programs, including those carried out by other Federal, State, or local agencies.

(d)

“Construction” defined

As used in this section, the term “construction” includes the erection of new dwellings, and the rehabilitation, alteration, conversion, or improvement of existing structures.

(e)

Establishment of appropriate criteria and procedures for determining eligibility of applicants

The Secretary is authorized to establish appropriate criteria and procedures in order to determine the eligibility of applicants for the financial assistance provided under this section, including criteria and procedures with respect to the periodic review of any construction carried out with such financial assistance.

(f)

Pub. L. 102–550, title VII, § 710(2)Oct. 28, 1992106 Stat. 3840 Repealed. , ,

(g)

Deposit in Self-Help Fund; availability of amounts; assets

Amounts appropriated under this subsection, together with principal collections from loans made under appropriations in any previous fiscal years, shall be deposited in the Self-Help Housing Land Development Fund, which shall be available, to the extent approved in appropriation Acts, as a revolving fund for making loans under subsection (b)(1)(B); except that not more than $5,000,000 may be made available during fiscal year 1985. Instruments and property acquired by the Secretary in or as a result of making such loans shall be assets of the Self-Help Housing Land Development Fund.

(h)

Rules and regulations

The Secretary shall issue rules and regulations for the orderly processing and review of applications under this section and rules and regulations protecting the rights of grantees under this section in the event he determines to end grant assistance prior to the termination date of any grant agreement.

July 15, 1949, ch. 338 Pub. L. 90–448, title X, § 1005Aug. 1, 196882 Stat. 553 Pub. L. 93–117, § 13(d)Oct. 2, 197387 Stat. 423 Pub. L. 93–383, title V, § 512Aug. 22, 197488 Stat. 695 Pub. L. 95–60, § 4(d)June 30, 197791 Stat. 258 Pub. L. 95–80, § 4(d)July 31, 197791 Stat. 340 Pub. L. 95–128, title V, § 501(d)Oct. 12, 197791 Stat. 1139 Pub. L. 95–406, § 7(d)Sept. 30, 197892 Stat. 881 Pub. L. 95–557, title V, § 501(g)Oct. 31, 197892 Stat. 2111 Pub. L. 96–71, § 5(d)Sept. 28, 197993 Stat. 502 Pub. L. 96–105, § 5(d)Nov. 8, 197993 Stat. 795 Pub. L. 96–153, title VDec. 21, 197993 Stat. 1133 Pub. L. 96–372, § 6(e)Oct. 3, 198094 Stat. 1365 Pub. L. 96–399, title VOct. 8, 198094 Stat. 1668 Pub. L. 97–35, title III, § 351(e)Aug. 13, 198195 Stat. 421 Pub. L. 97–289, § 3(c)Oct. 6, 198296 Stat. 1231 Pub. L. 98–35, § 3(c)May 26, 198397 Stat. 198 Pub. L. 98–109, § 4(c)Oct. 1, 198397 Stat. 746 Pub. L. 98–181, title INov. 30, 198397 Stat. 1244 Pub. L. 98–479, title II, § 204(c)(2)Oct. 17, 198498 Stat. 2233 Pub. L. 99–120, § 3(c)Oct. 8, 198599 Stat. 503 Pub. L. 99–156, § 3(c)Nov. 15, 198599 Stat. 816 Pub. L. 99–219, § 3(c)Dec. 26, 198599 Stat. 1731 Pub. L. 99–267, § 3(c)Mar. 27, 1986100 Stat. 74 Pub. L. 99–272, title III, § 3009(c)Apr. 7, 1986100 Stat. 106 Pub. L. 99–289, § 1(b)May 2, 1986100 Stat. 412 Pub. L. 99–345, § 1June 24, 1986100 Stat. 673 Pub. L. 99–430Sept. 30, 1986100 Stat. 986 Pub. L. 100–122, § 1Sept. 30, 1987101 Stat. 793 Pub. L. 100–154Nov. 5, 1987101 Stat. 890 Pub. L. 100–170Nov. 17, 1987101 Stat. 914 Pub. L. 100–179Dec. 3, 1987101 Stat. 1018 Pub. L. 100–200Dec. 21, 1987101 Stat. 1327 Pub. L. 100–242, title III, § 301(f)Feb. 5, 1988101 Stat. 1893 Pub. L. 101–137, § 7(c)Nov. 3, 1989103 Stat. 826 Pub. L. 101–625, title VII, § 701(f)Nov. 28, 1990104 Stat. 4282 Pub. L. 102–142, title VII, § 743(b)Oct. 28, 1991105 Stat. 915 Pub. L. 102–550, title VII, § 710Oct. 28, 1992106 Stat. 3840 Pub. L. 118–42, div. B, title VII, § 760Mar. 9, 2024138 Stat. 115(, title V, § 523, as added , , ; amended , , ; , , ; , , ; , , ; , , ; , , ; , (h), , ; , , ; , , ; , §§ 501(d), (e), 505, , , 1135; , , ; , §§ 501(d), 507(e), , , 1670; , , ; , , ; , , ; , , ; [title V, § 511(d), (e)], , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , .)

Editorial Notes

Amendments

Pub. L. 118–422024—Subsec. (b)(1)(B). substituted “five years” for “two years”.

Pub. L. 102–550, § 710(1)section 1472 of this title1992—Subsec. (b)(1)(A). , inserted “, including the repair of units financed under that are being held in inventory” after “efforts”.

Pub. L. 102–550, § 710(2)September 30, 1992Subsec. (f). , struck out subsec. (f) which read as follows: “No grant or loan may be made or contract entered into under the authority of this section after , except pursuant to a commitment or other obligation entered into pursuant to this section before that date.”

Pub. L. 102–1421991—Subsec. (f). substituted “1992” for “1991”.

Pub. L. 101–6251990—Subsec. (f). substituted “1991” for “1990”.

Pub. L. 101–1371989—Subsec. (f). substituted “1990” for “1989”.

Pub. L. 100–242September 30, 1989March 15, 19881988—Subsec. (f). substituted “” for “”.

Pub. L. 100–200March 15, 1988December 16, 19871987—Subsec. (f). substituted “” for “”.

Pub. L. 100–179December 16, 1987December 2, 1987 substituted “” for “”.

Pub. L. 100–170December 2, 1987November 15, 1987 substituted “” for “”.

Pub. L. 100–154November 15, 1987October 31, 1987 substituted “” for “”.

Pub. L. 100–122October 31, 1987September 30, 1987 substituted “” for “”.

Pub. L. 99–4301986—Subsec. (f). substituted “1987” for “1986”.

Pub. L. 99–345September 30, 1986June 6, 1986 substituted “” for “”.

Pub. L. 99–289June 6, 1986April 30, 1986 substituted “” for “”.

Pub. L. 99–272 Pub. L. 99–219March 17, 1986December 15, 1985 directed amendment identical to , substituting “” for “”.

Pub. L. 99–267April 30, 1986March 17, 1986 substituted “” for “”.

Pub. L. 99–219March 17, 1986December 15, 19851985—Subsec. (f). substituted “” for “”.

Pub. L. 99–156December 15, 1985November 14, 1985 substituted “” for “”.

Pub. L. 99–120November 14, 1985September 30, 1985 substituted “” for “”.

Pub. L. 98–4791984—Subsec. (g). inserted “Housing” before “Land” after “Self-Help” in last sentence.

Pub. L. 98–181, § 511(d)September 30, 1985November 30, 19831983—Subsec. (f). , substituted “” for “”, and struck out first sentence which authorized not to exceed $5,000,000 to carry out this section for fiscal year 1983.

Pub. L. 98–109November 30, 1983September 30, 1983 substituted “” for “” the second time it appeared.

Pub. L. 98–35September 30, 1983May 20, 1983 substituted “” for “” in two places.

Pub. L. 98–181, § 511(e)Subsec. (g). , substituted “1985” for “1982” and struck out first sentence which authorized not to exceed $3,000,000 to carry out subsec. (b)(1)(B) for fiscal year 1982.

Pub. L. 97–289May 20, 1983September 30, 19821982—Subsec. (f). substituted “” for “” wherever appearing.

Pub. L. 97–35, § 351(e)(1)1981—Subsec. (f). , substituted “1982” for “1981” in two places.

Pub. L. 97–35, § 351(e)(2)Sept. 30, 1982Sept. 30, 1981Subsec. (g). –(4), inserted provisions relating to availability in appropriation Acts, and substituted provisions relating to authorization of appropriations for fiscal year ending , for provisions authorizing appropriations for fiscal year ending .

Pub. L. 96–399, § 507(e)1980—Subsec. (b). , inserted reference to Indian tribes in subpars. (1)(A) and (B), and in par. (2).

Pub. L. 96–399, § 501(d)(1)September 30, 1981October 15, 1980Subsec. (f). , substituted “” for “” wherever appearing.

Pub. L. 96–372October 15, 1980September 30, 1980 substituted “” for “” wherever appearing.

Pub. L. 96–399, § 501(d)(2)June 30, 1969June 30, 1970Sept. 30, 1979Sept. 30, 1980Subsec. (g). , substituted provisions authorizing appropriations not to exceed $2,500,000 for fiscal 1981, such amount together with principal collections from loans under appropriations in prior years to be deposited in the Self-Help Housing Land Development Fund, to be available as a revolving fund for loans under subsec. (b)(1)(B) of this section for provisions authorizing appropriations not to exceed $1,000,000, $2,000,000, $3,000,000 and $1,000,000 for fiscal years ending , , , and , respectively, provisions allowing appropriation of authorized funds in succeeding years, to be deposited in the Self-Help Fund to be available without fiscal year limitation, and provision for deposit in such Fund of sums received from repayment of such loans.

Pub. L. 96–153, § 5051979—Subsec. (b). , redesignated existing par. (2) as (3) and added par. (2).

Pub. L. 96–153, § 501(d)Sept. 30, 1980June 30, 1968Oct. 1, 1978September 30, 1980November 30, 1979Subsec. (f). , substituted authorization of appropriation of $5,000,000 for fiscal year ending , for provisions containing authorization of appropriation for fiscal years commencing to , and substituted “” for “”.

Pub. L. 96–105December 1, 1979November 30, 1979November 1, 1979October 31, 1979 substituted “” and “” for “” and “”, respectively.

Pub. L. 96–71November 1, 1979October 31, 1979October 1, 1979September 30, 1979 substituted “” and “” for “” and “”, respectively.

Pub. L. 96–153, § 501(e)September 30, 1980Subsec. (g). , inserted authorization of appropriation of $1,000,000 for fiscal year ending .

Pub. L. 95–557, § 501(g)October 1, 1979November 1, 1978September 30, 1979October 31, 19781978—Subsec. (f). , substituted “” for “”, “” for “”, and “$16,500,000” for “$10,000,000”.

Pub. L. 95–406November 1, 1978October 1, 1978October 31, 1978September 30, 1978 substituted “” for “” and “” for “”.

Pub. L. 95–557, § 501(h)September 30, 1979June 30, 1970Subsec. (g). , inserted “and not to exceed $3,000,000 for the fiscal year ending ”, after “”.

Pub. L. 95–1281977—Subsec. (f). substituted “1978” for “1977” wherever appearing.

Pub. L. 95–80October 1, 1977August 1, 1977September 30, 1977July 31, 1977 substituted “” for “” and “” for “”.

Pub. L. 95–60August 1, 1977July 1, 1977July 31, 1977June 30, 1977 substituted “” for “” and “” for “”.

Pub. L. 93–383, § 512(a)1974—Subsec. (b)(1). , inserted proviso relating to advance of funds by Secretary at end of cl. (B).

Pub. L. 93–383, § 512(b)Subsec. (f). , substituted “1977” for “1974” wherever appearing and “$10,000,000” for “$5,000,000”.

Pub. L. 93–383, § 512(c)Subsec. (h). , added subsec. (h).

Pub. L. 93–1171973—Subsec. (f). substituted “1974” for “1973” wherever appearing.

Statutory Notes and Related Subsidiaries

Effective Date of 1981 Amendment

Pub. L. 97–35Oct. 1, 1981section 371 of Pub. L. 97–35 section 3701 of Title 12Amendment by effective , see , set out as an Effective Date note under , Banks and Banking.