[Code of Federal Regulations]

[Title 24, Volume 4]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR1007.15]



[Page 826]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 

               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 1007_SECTION 184A LOAN GUARANTEES FOR NATIVE HAWAIIAN HOUSING

--Table of Contents

 

Sec.  1007.15  Eligible uses.



    (a) In general. A loan guaranteed under this part may only be used 

to construct, acquire, or rehabilitate eligible housing.

    (b) Construction advances. Advances made by the lender during 

construction are eligible if:

    (1) The mortgagor and the mortgagee execute a building loan 

agreement, approved by HUD, setting forth the terms and conditions under 

which advances will be made;

    (2) The advances are made only as provided in the building loan 

agreement;

    (3) The principal amount of the mortgage is held by the mortgagee in 

an interest bearing account, trust, or escrow for the benefit of the 

mortgagor, pending advancement to the mortgagor or to his or her 

creditors as provided in the loan agreement; and

    (4) The mortgage bears interest on the amount advanced to the 

mortgagor or to his or her creditors and on the amount held in an 

account or trust for the benefit of the mortgagor.