42 U.S.C. § 5308 | Guarantee and commitment to guarantee loans for acquisition of property

(a)

Authority of Secretary; issuance of obligations by eligible public entities or designated public agencies; form, denomination, maturity, and conditions of notes or other obligations; percentage allocation requirements

1 See References in Text note below.

The Secretary is authorized, upon such terms and conditions as the Secretary may prescribe, to guarantee and make commitments to guarantee, only to such extent or in such amounts as provided in appropriation Acts, the notes or other obligations issued by eligible public entities, or by public agencies designated by such eligible public entities, for the purposes of financing (1) acquisition of real property or the rehabilitation of real property owned by the eligible public entity (including such related expenses as the Secretary may permit by regulation); (2) housing rehabilitation; (3) economic development activities permitted under paragraphs (14), (15), and (17) of ; (4) construction of housing by nonprofit organizations for homeownership under section 1437(d)  of this title or title VI of the Housing and Community Development Act of 1987; (5) the acquisition, construction, reconstruction, or installation of public facilities (except for buildings for the general conduct of government); or (6) in the case of colonias (as such term is defined in section 916 of the Cranston-Gonzalez National Affordable Housing Act), public works and site or other improvements. A guarantee under this section may be used to assist a grantee in obtaining financing only if the grantee has made efforts to obtain such financing without the use of such guarantee and cannot complete such financing consistent with the timely execution of the program plans without such guarantee. Notes or other obligations guaranteed pursuant to this section shall be in such form and denominations, have such maturities, and be subject to such conditions as may be prescribed by regulations issued by the Secretary. The Secretary may not deny a guarantee under this section on the basis of the proposed repayment period for the note or other obligation, unless the period is more than 20 years or the Secretary determines that the period causes the guarantee to constitute an unacceptable financial risk. Notwithstanding any other provision of law and subject only to the absence of qualified applicants or proposed activities and to the authority provided in this section, to the extent approved or provided in appropriation Acts, the Secretary shall enter into commitments to guarantee notes and obligations under this section with an aggregate principal amount of $2,000,000,000 for fiscal year 1993 and $2,000,000,000 for fiscal year 1994. Of the amount approved in any appropriation Act for guarantees under this section in any fiscal year, the Secretary shall allocate 70 percent for guarantees for metropolitan cities, urban counties, and Indian tribes and 30 percent for guarantees for units of general local government in nonentitlement areas. The Secretary may waive the percentage requirements of the preceding sentence in any fiscal year only to the extent that there is an absence of qualified applicants or proposed activities from metropolitan cities, urban counties, and Indian tribes or units of general local government in nonentitlement areas.

(b)

Prerequisites

No guarantee or commitment to guarantee shall be made with respect to any note or other obligation if the issuer’s total outstanding notes or obligations guaranteed under this section (excluding any amount defeased under the contract entered into under subsection (d)(1)(A)) would thereby exceed an amount equal to 5 times the amount of the grant approval for the issuer pursuant to section 5306 or 5307 of this title.

(c)

Payment of principal, interest and costs

Notwithstanding any other provision of this chapter, grants allocated to an issuer pursuant to this chapter (including program income derived therefrom) are authorized for use in the payment of principal and interest due (including such servicing, underwriting, or other costs as may be specified in regulations of the Secretary) on the notes or other obligations guaranteed pursuant to this section.

(d)

Repayment contract; security; pledge by State

(1)

To assure the repayment of notes or other obligations and charges incurred under this section and as a condition for receiving such guarantees, the Secretary shall require the issuer to—

(A)

enter into a contract, in a form acceptable to the Secretary, for repayment of notes or other obligations guaranteed hereunder;

(B)

pledge any grant for which the issuer may become eligible under this chapter; and

(C)

furnish, at the discretion of the Secretary, such other security as may be deemed appropriate by the Secretary in making such guarantees, including increments in local tax receipts generated by the activities assisted under this chapter or dispositions proceeds from the sale of land or rehabilitated property.

(2)

To assist in assuring the repayment of notes or other obligations and charges incurred under this section, a State shall pledge any grant for which the State may become eligible under this chapter as security for notes or other obligations and charges issued under this section by any unit of general local government in a nonentitlement area in the State.

(e)

Pledged grants for repayments

The Secretary is authorized, notwithstanding any other provision of this chapter, to apply grants pledged pursuant to paragraphs (1)(B) and (2) of subsection (d) to any repayments due the United States as a result of such guarantees.

(f)

Full faith and credit of United States pledged for payment; conclusiveness and validity of guarantee

The full faith and credit of the United States is pledged to the payment of all guarantees made under this section. Any such guarantee made by the Secretary shall be conclusive evidence of the eligibility of the obligations for such guarantee with respect to principal and interest, and the validity of any such guarantee so made shall be incontestable in the hands of a holder of the guaranteed obligations.

(g)

Issuance of obligations by Secretary to Secretary of the Treasury to satisfy authorized guarantee obligations; establishment of maturities and rates of interest and purchase of obligations by Secretary of the Treasury

The Secretary may issue obligations to the Secretary of the Treasury in an amount outstanding at any one time sufficient to enable the Secretary to carry out his obligations under guarantees authorized by this section. The obligations issued under this subsection shall have such maturities and bear such rate or rates of interest as shall be determined by the Secretary of the Treasury. The Secretary of the Treasury is authorized and directed to purchase any obligations of the Secretary issued under this section, and for such purposes is authorized to use as a public debt transaction the proceeds from the sale of any securities issued under chapter 31 of title 31, and the purposes for which such securities may be issued under such chapter are extended to include the purchases of the Secretary’s obligations hereunder.

(h)

Federal taxation of guaranteed obligations; grants to borrowing entity or agency of taxable obligations for net interest costs, etc.; limitation on amount of grant; assistance to issuer in hardship cases

Obligations guaranteed under this section shall be subject to Federal taxation as provided in subsection (j). The Secretary is authorized to make, and to contract to make, grants, in such amounts as may be approved in appropriations Acts, to or on behalf of the issuing eligible public entity or public agency to cover not to exceed 30 per centum of the net interest cost (including such servicing, underwriting, or other costs as may be specified in regulations of the Secretary) to the borrowing entity or agency of such obligations. The Secretary may also, to the extent approved in appropriation Acts, assist the issuer of a note or other obligation guaranteed under this section in the payment of all or a portion of the principal and interest amount due under the note or other obligation, if the Secretary determines that the issuer is unable to pay the amount because of circumstances of extreme hardship beyond the control of the issuer.

(i)

Omitted

(j)

Inclusion within gross income for purpose of chapter 1 of title 26 of interest paid on taxable obligations

2 So in original. Probably should be “an”.

With respect to any obligation issued by a  eligible public entity or designated agency which is guaranteed pursuant to this section, the interest paid on such obligation shall be included in gross income for the purpose of chapter 1 of title 26.

(k)

Outstanding obligations; limitation; monitoring use of guarantees under this section

(1)

The total amount of outstanding obligations guaranteed on a cumulative basis by the Secretary pursuant to subsection (a) shall not at any time exceed $4,500,000,000 or such higher amount as may be authorized to be appropriated for sections 5306 and 5307 of this title for any fiscal year.

(2)

The Secretary shall monitor the use of guarantees under this section by eligible public entities. If the Secretary finds that 50 percent of the aggregate guarantee authority has been committed, the Secretary may—

(A)

section 5306(b) of this title section 5306(d) of this title impose limitations on the amount of guarantees any one entity may receive in any fiscal year of $35,000,000 for units of general local government receiving grants under and $7,000,000 for units of general local government receiving grants under ; or

(B)

request the enactment of legislation increasing the aggregate limitation on guarantees under this section.

(l)

Purchase of guaranteed obligations by Federal Financing Bank

Notes or other obligations guaranteed under this section may not be purchased by the Federal Financing Bank.

(m)

Limitation on imposition of fee or charge

February 5, 1988No fee or charge may be imposed by the Secretary or any other Federal agency on or with respect to a guarantee made by the Secretary under this section after .

(n)

State assistance in submission of applications

section 5306(d)(2)(A) of this titleAny State that has elected under to distribute funds to units of general local government in nonentitlement areas may assist such units in the submission of applications for guarantees under this section.

(o)

“Eligible public entity” defined

For purposes of this section, the term “eligible public entity” means any unit of general local government, including units of general local government in nonentitlement areas.

(p)

Training and information activities relating to home guarantee program

(1)

November 28, 19903

3 See Codification note below.

The Secretary, in cooperation with eligible public entities, shall carry out training and information activities with respect to the guarantee program under this section. Such activities shall commence not later than 1 year after .

(2)

section 5307 of this title The Secretary may use amounts set aside under to carry out this subsection.

(q)

Economic development grants

(1)

Authorization

The Secretary may make grants in connection with notes or other obligations guaranteed under this section to eligible public entities for the purpose of enhancing the security of loans guaranteed under this section or improving the viability of projects financed with loans guaranteed under this section.

(2)

Eligible activities

Assistance under this subsection may be used only for the purposes of and in conjunction with projects and activities assisted under subsection (a).

(3)

Applications

Applications for assistance under this subsection may be submitted only by eligible public entities, and shall be in the form and in accordance with the procedures established by the Secretary. Eligible public entities may apply for grants only in conjunction with requests for guarantees under subsection (a).

(4)

Selection criteria

The Secretary shall establish criteria for awarding assistance under this subsection. Such criteria shall include—

(A)

the extent of need for such assistance;

(B)

the level of distress in the community to be served and in the jurisdiction applying for assistance;

(C)

the quality of the plan proposed and the capacity or potential capacity of the applicant to successfully carry out the plan; and

(D)

such other factors as the Secretary determines to be appropriate.

(r)

Guarantee of obligations backed by loans

(1)

Authority

The Secretary may, upon such terms and conditions as the Secretary considers appropriate, guarantee the timely payment of the principal of and interest on such trust certificates or other obligations as may—

(A)

be offered by the Secretary or by any other offeror approved for purposes of this subsection by the Secretary; and

(B)

be based on and backed by a trust or pool composed of notes or other obligations guaranteed or eligible for guarantee by the Secretary under this section.

(2)

Full faith and credit

To the same extent as provided in subsection (f), the full faith and credit of the United States is pledged to the payment of all amounts that may be required to be paid under any guarantee made by the Secretary under this subsection.

(3)

Subrogation

If the Secretary pays a claim under a guarantee made under this section, the Secretary shall be subrogated for all the rights of the holder of the guaranteed certificate or obligation with respect to such certificate or obligation.

(4)

Effect of laws

No State or local law, and no Federal law, shall preclude or limit the exercise by the Secretary of—

(A)

the power to contract with respect to public offerings and other sales of notes, trust certificates, and other obligations guaranteed under this section upon such terms and conditions as the Secretary deems appropriate;

(B)

the right to enforce any such contract by any means deemed appropriate by the Secretary; and

(C)

any ownership rights of the Secretary, as applicable, in notes, certificates, or other obligations guaranteed under this section, or constituting the trust or pool against which trust certificates, or other obligations guaranteed under this section, are offered.

Pub. L. 93–383, title I, § 108Aug. 22, 197488 Stat. 647 Pub. L. 95–128, title I, § 108Oct. 12, 197791 Stat. 1123 Pub. L. 96–399, title I, § 108Oct. 8, 198094 Stat. 1619 Pub. L. 97–35, title III, § 309(i)Aug. 13, 198195 Stat. 397 Pub. L. 98–181, title INov. 30, 198397 Stat. 1168 Pub. L. 98–479, title IIlOct. 17, 198498 Stat. 2231 Pub. L. 99–272, title III, § 3002(a)Apr. 7, 1986100 Stat. 102 Pub. L. 100–242, title V, § 514Feb. 5, 1988101 Stat. 1930 Pub. L. 101–625, title IXNov. 28, 1990104 Stat. 4385 Pub. L. 102–550, title VIII, § 801(b)Oct. 28, 1992106 Stat. 3843 Pub. L. 103–233, title IIApr. 11, 1994108 Stat. 366 Pub. L. 104–120, § 3(b)Mar. 28, 1996110 Stat. 835(, , ; , , ; , , ; , , ; [title I, § 108], , ; , §§ 203()(2), 204(k)(1), , , 2233; , , ; , , ; , §§ 901(b), 910(b)–(g), , , 4389–4391; , , ; , §§ 231, 232(a)(1), 233, , , 368; , , .)

Editorial Notes

References in Text

oPub. L. 101–625, title II, § 289(b)Nov. 28, 1990104 Stat. 4128Section 1437 of this title, referred to in subsec. (a)(4), was repealed by , , .

Pub. L. 100–242Feb. 5, 1988101 Stat. 1951lPub. L. 101–625, title II, § 289(b)Nov. 28, 1990104 Stat. 4128Title VI of the Housing Community Development Act of 1987, referred to in subsec. (a)(4), is title VI of , , , which was set out as a note under section 1715 of Title 12, Banks and Banking, and was repealed by , , .

section 916 of Pub. L. 101–625 section 5306 of this titleSection 916 of the Cranston-Gonzalez National Affordable Housing Act, referred to in subsec. (a)(6), is , which is set out as a note under .

Pub. L. 93–383Aug. 22, 197488 Stat. 633This chapter, referred to in subsecs. (c) to (e), was in the original “this title”, meaning title I of , , , which is classified principally to this chapter. For complete classification of title I to the Code, see Tables.

Codification

Pub. L. 95–128, § 108(2)Subsec. (i) of this section amended section 711(22) of former Title 31, Money and Finance. Subsec. (i) was originally enacted as subsec. (f) of this section, and was redesignated as subsec. (i) by .

November 28, 1990Pub. L. 101–625, referred to in subsec. (p)(1), was in the original “the date of the enactment of the Housing and Community Development Act of 1990”, and was translated as meaning the date of enactment of the Cranston-Gonzalez National Affordable Housing Act, , which enacted subsec. (p) of this section, to reflect the probable intent of Congress and because no “Housing and Community Development Act of 1990” has been enacted.

Amendments

Pub. L. 104–1201996—Subsec. (k)(1). substituted “$4,500,000,000” for “$3,500,000,000”.

Pub. L. 103–233, § 2311994—Subsec. (a). , added cls. (5) and (6).

Pub. L. 103–233, § 232(a)(1)Subsec. (q). , added subsec. (q).

Pub. L. 103–233, § 233Subsec. (r). , added subsec. (r).

Pub. L. 102–5501992—Subsec. (a). amended fifth sentence generally. Prior to amendment, fifth sentence read as follows: “Notwithstanding any other provision of law and subject only to the absence of qualified applicants or proposed activities and to the authority provided in this section, to the extent approved or provided in appropriation Acts, the Secretary shall enter into commitments to guarantee notes and obligations under this section with an aggregate principal amount of $300,000,000 during fiscal year 1991 and $300,000,000 during fiscal year 1992.”

Pub. L. 101–625, § 910(e)(1)1990—Subsec. (a). , inserted at end “Of the amount approved in any appropriation Act for guarantees under this section in any fiscal year, the Secretary shall allocate 70 percent for guarantees for metropolitan cities, urban counties, and Indian tribes and 30 percent for guarantees for units of general local government in nonentitlement areas. The Secretary may waive the percentage requirements of the preceding sentence in any fiscal year only to the extent that there is an absence of qualified applicants or proposed activities from metropolitan cities, urban counties, and Indian tribes or units of general local government in nonentitlement areas.”

Pub. L. 101–625, § 910(c), inserted “The Secretary may not deny a guarantee under this section on the basis of the proposed repayment period for the note or other obligation, unless the period is more than 20 years or the Secretary determines that the period causes the guarantee to constitute an unacceptable financial risk.”

Pub. L. 101–625, § 910(b)(2), substituted a semicolon for “; or” before “(3)” and added cl. (4).

Pub. L. 101–625, § 910(b)(1)(A), substituted “eligible public entity” and “eligible public entities” for “unit of general local government” and “units of general local government”, respectively, wherever appearing.

Pub. L. 101–625, § 901(b), amended last sentence generally. Prior to amendment, last sentence read as follows: “Notwithstanding any other provision of law and subject only to the absence of qualified applicants or proposed activities, to the authority provided in this section, and to any funding limitation approved in appropriation Acts, the Secretary shall enter into commitments to guarantee notes and obligations under this section with an aggregate principal amount of $150,000,000 during fiscal year 1988, and $153,000,000 during fiscal year 1989.”

Pub. L. 101–625, § 910(d)section 5307 of this titleSubsec. (b). , inserted “(excluding any amount defeased under the contract entered into under subsection (d)(1)(A))” after “this section”, substituted “5” for “three”, and inserted reference to .

Pub. L. 101–625, § 910(b)(4)(A)Subsec. (d). , designated existing provisions as par. (1), redesignated former pars. (1) to (3) as subpars. (A) to (C), respectively, and added par. (2).

Pub. L. 101–625, § 910(b)(4)(B)Subsec. (e). , substituted “paragraphs (1)(B) and (2) of subsection (d)” for “subsection (d)(2)”.

Pub. L. 101–625, § 910(f)Subsec. (h). , inserted at end “The Secretary may also, to the extent approved in appropriation Acts, assist the issuer of a note or other obligation guaranteed under this section in the payment of all or a portion of the principal and interest amount due under the note or other obligation, if the Secretary determines that the issuer is unable to pay the amount because of circumstances of extreme hardship beyond the control of the issuer.”

Pub. L. 101–625, § 910(b)(1), substituted “entity or agency” for “unit or agency” and “eligible public entity” for “unit of general local government”.

Pub. L. 101–625, § 910(b)(1)(A)Subsec. (j). , substituted “eligible public entity” for “unit of general local government”.

Pub. L. 101–625, § 910(e)(2)Subsec. (k). , designated existing provisions as par. (1) and added par. (2).

Pub. L. 101–625, § 910(b)(3)Subsec. (n). , added subsec. (n).

oPub. L. 101–625, § 910(b)(5)oSubsec. (). , added subsec. ().

Pub. L. 101–625, § 910(g)Subsec. (p). , added subsec. (p).

Pub. L. 100–242, § 514(a), in last sentence struck out “during fiscal year 1984” after “commitment” and substituted “$150,000,000 during fiscal year 1988, and $153,000,000 during fiscal year 1989” for “$225,000,000”.

Pub. L. 100–242, § 514(b)Subsec. (m). , added subsec. (m).

lPub. L. 99–272l1986—Subsec. (). added subsec. ().

Pub. L. 98–479, § 203l1984—Subsec. (g). ()(2), substituted “chapter 31 of title 31” for “the Second Liberty Bond Act, as now or hereafter in force” and “such chapter” for “such Act”.

Pub. L. 98–479, § 204(k)(1)Subsec. (h). , substituted “subsection (j)” for “subsection (g)”.

Pub. L. 98–1811983—Subsec. (a). inserted provision that a guarantee under this section may be used to assist a grantee in obtaining financing only if the grantee has made efforts to obtain such financing without the use of such guarantee and cannot complete such financing consistent with the timely execution of the program plans without such guarantee, and substituted provisions requiring the Secretary to enter into commitments during fiscal year 1984 to guarantee notes and obligations under this section with an aggregate principal amount of $225,000,000, notwithstanding any other provision of law and subject only to the absence of qualified applicants or proposed activities, for provisions prohibiting the Secretary from entering into commitments during fiscal year 1981 to guarantee under this section notes and other obligations with an aggregate principal amount in excess of $300,000,000.

Pub. L. 97–351981—Subsec. (d)(2). struck out “approved or” after “grant”.

Pub. L. 96–399, § 108(1)1980—Subsec. (a). , (2), inserted provision respecting amounts as provided in appropriation Acts, and provision relating to limitation of $300,000,000 the amount the Secretary is authorized to guarantee during fiscal year 1981.

Pub. L. 96–399, § 108(3)Subsec. (j). , struck out “Notwithstanding any other provision of this section” before “The total amount”.

Pub. L. 95–128, § 108(1)section 5305 of this title section 5304 of this title section 5303 of this title1977—Subsec. (a). , (3), reenacted substantially existing provisions and struck out “or assembly” after “acquisition of”, included rehabilitation of real property owned by the unit of general local government, inserted provision respecting form, denominations, maturities, and conditions of notes or other obligations to be guaranteed, and struck out after parenthetical text “to serve or be used in carrying out activities which are eligible for assistance under and are identified in the application under , and with respect to which grants have been or are to be made under , but no such guarantee shall be issued in behalf of any agency designed to benefit, in or by the flotation of any issue, a private individual or corporation”.

Pub. L. 95–128, § 108(1)Subsec. (b). , (3), added subsec. (b) and struck out prior provisions respecting: reservation and withholding of prescribed amount for purpose of paying guaranteed obligations, subject to being increased because of any unanticipated, major reduction in estimated disposition proceeds; pledge of full faith and credit of unit of general local government to the Secretary for repayment of any amount required to be paid by the United States pursuant to any guarantee; and pledge of repayment of proceeds of grants in event of failure of repayment as hereinbefore provided.

Pub. L. 95–128, § 108(3)Subsecs. (c) to (e). , added subsecs. (c) to (e). Former subsecs. (c) to (e) redesignated (f) to (h).

Pub. L. 95–128, § 108(2)Subsecs. (f), (g). , redesignated former subsecs. (c) and (d) as (f) and (g).

Pub. L. 95–128, § 108(2)Subsec. (h). , (4), (5), redesignated former subsec. (e) as (h) and substituted in first sentence “subsection (j)” for “subsection (g)”; substituted in first sentence “shall” for “may, at the option of the issuing unit of general local government or designated agency,”; and in second sentence “The Secretary is authorized to make, and to contract to make, grants, in such amounts as may be approved in appropriations Acts,” for “In the event that taxable obligations are issued and guaranteed, the Secretary is authorized to make, and to contract to make, grants”.

Pub. L. 95–128, § 108(2)Subsec. (j). , (6), redesignated former subsec. (g) as (j) and substituted “is guaranteed pursuant to” for “such unit or agency has elected to issue as a taxable obligation pursuant to subsection (e) of”.

Pub. L. 95–128, § 108(7)Subsec. (k). , added subsec. (k).

Statutory Notes and Related Subsidiaries

Effective Date of 1996 Amendment

Pub. L. 104–120Oct. 1, 1995section 13(a) of Pub. L. 104–120 section 1437d of this titleAmendment by to be construed to have become effective , see , set out as an Effective and Termination Dates of 1996 Amendments note under .

Effective Date of 1994 Amendment

Pub. L. 103–233Apr. 11, 1994section 209 of Pub. L. 103–233 section 5301 of this titleAmendment by applicable with respect to any amounts made available to carry out subchapter II (§ 12721 et seq.) of chapter 130 of this title after , and any amounts made available to carry out that subchapter before that date that remain uncommitted on that date, with Secretary to issue any regulations necessary to carry out such amendment not later than end of 45-day period beginning on that date, see , set out as a note under .

Effective Date of 1986 Amendment

Pub. L. 99–272, title III, § 3002(b)Apr. 7, 1986100 Stat. 102

July 1, 1986“The amendment made by subsection (a) [amending this section] shall take effect on .”

, , , provided that:

Effective Date of 1983 Amendment

Pub. L. 98–181 section 110(b) of Pub. L. 98–181 section 5316 of this titleAmendment by applicable only to funds available for fiscal year 1984 and thereafter, see , as amended, set out as a note under .

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.

Effective Date of 1977 Amendment

Pub. L. 95–128Oct. 1, 1977section 114 of Pub. L. 95–128 section 5301 of this titleAmendment by effective , see , set out as a note under .

Regulations

Pub. L. 101–625, title IX, § 910(i)Nov. 28, 1990104 Stat. 4392

section 5313 of this title“To carry out the amendments made by this section [amending this section and ], the Secretary of Housing and Urban Development shall—

“(1)

Nov. 28, 1990 issue proposed regulations not later than 90 days after the date of the enactment of this Act []; and

“(2)

issue final regulations not later than 180 days after the date of the enactment of this Act.”

, , , provided that:

Community Development Loan Guarantees

Pub. L. 101–625, title IX, § 910(a)Nov. 28, 1990104 Stat. 4389

“(1)

Purposes .—

section 5313 of this titleThe purposes of the amendments made by this section [amending this section and ] are—

“(A)

to reaffirm the commitment of the Federal Government to assist local governments in their efforts in stimulating economic and community development activities needed to combat severe economic distress and to help in promoting economic development activities needed to aid in economic recovery; and

“(B)

to promote revitalization and development projects undertaken by local governments that principally benefit persons of low and moderate income, the elimination of slums and blight, and to meet urgent community needs, with special priority for projects located in areas designated as enterprise zones by the Federal Government or by any State.

“(2)

Objectives .—

42 U.S.C. 5301(c)In order to further the purpose described in paragraph (1), activities undertaken pursuant to the amendments made by this section shall be directed toward meeting the objectives set forth in sections 101(c) and 104(b)(3) of the Housing and Community Development Act of 1974 ( and 5304(b)(3)) and the additional objectives of—

“(A)

encouraging local governments to establish public-private partnerships;

“(B)

preserving housing affordable for persons of low and moderate income; and

“(C)

creating permanent employment opportunities, primarily for persons of low and moderate income.”

, , , provided that:

Administrative Actions for Provision of Private Sector Financing of Guaranteed Loans

Pub. L. 99–272, title III, § 3002(c)Apr. 7, 1986100 Stat. 102July 1, 1986, , , directed the Secretary of Housing and Urban Development to take necessary administrative actions to provide by , private sector financing of loans guaranteed under this section.