[Code of Federal Regulations]
[Title 7, Volume 11]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1822.278]

[Page 1181]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVIII--RURAL HOUSING SERVICE, RURAL BUSINESS-COOPERATIVE 
SERVICE, RURAL UTILITIES SERVICE, AND FARM SERVICE AGENCY, DEPARTMENT OF 
                               AGRICULTURE
 
PART 1822--RURAL HOUSING LOANS AND GRANTS--Table of Contents
 
      Subpart G--Rural Housing Site Loan Policies, Procedures, and 
                             Authorizations
 
Sec. 1822.278  Special requirements for RHS section 523 loans (loans to organizations providing sites for self-help housing).

    Loans to organizations which will provide sites for self-help 
housing (RHS sec. 523 loans) will be made under the provisions of this 
subpart with the following exceptions:
    (a) Eligibility. The applicant must be a nonprofit organization 
engaged in assisting self-help projects.
    (b) Interest. The interest rate will be 3 percent per annum on the 
unpaid principal balance.
    (c) Source of funds. These will be direct loans made from the self-
help fund.
    (d) Evidence of need. Loans to newly formed organizations will be 
made on the basis of the applicant's providing firm information as to 
the number of sites to be developed and the names of eligible bona fide 
prospective purchasers who are assured of available home financing. 
Loans to organizations currently involved in mutual self-help housing 
projects may be made without submitting a list of the names of 
prospective site purchasers. There must, however, be definite evidence 
that enough families are available who are eligible and who will buy the 
sites when they are developed.
    (e) Multiple advances. These loans may be disbursed over a period 
not to exceed 18 months from the date of the first advance.
    (f) Note forms. Form FmHA or its successor agency under Public Law 
103-354 1944-52, ``Multiple Family Housing Promissory Note,'' will be 
used. See Sec. 1822.274 (c).
    (g) Mortgage. Unless the OGC determines the Form to be 
inappropriate, real estate mortgage Form FmHA or its successor agency 
under Public Law 103-354 1927-1 (state), ``Real Estate ---------- for --
-------- (Direct Loan),'' will be used modified as prescribed by or with 
the advice of the OGC with respect to the name, address, and other 
identification of the borrower, the style of execution, and the 
acknowledgement. Additional paragraphs will be included in the mortgage 
to read as follows:

    The borrower agrees not to discriminate in the sale of the dwelling 
financed under this mortgage due to a prospective purchaser's race, 
color, national origin, sex, religion, age, marital status, or handicap. 
The borrower further agrees to comply with all Federal, State, or local 
laws and ordinances prohibiting discrimination in the sale of housing. 
The borrower's failure or refusal to comply with this agreement will be 
a basis for the FmHA or its successor agency under Public Law 103-354 to 
deny future requests for participation in its rural housing programs and 
activities.
    This instrument also secures the obligations and covenants of 
borrower set forth in Borrower's Loan Resolution of -------- (date), 
which is hereby incorporated herein by reference.

[35 FR 16087, July 1, 1970, as amended at 42 FR 4408, Jan. 25, 1977; 50 
FR 8584, Mar. 4, 1985; 56 FR 67472, Dec. 31, 1991]