[Code of Federal Regulations]

[Title 24, Volume 1]

[Revised as of April 1, 2006]

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

[CITE: 24CFR92.301]



[Page 630-631]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

PART 92_HOME INVESTMENT PARTNERSHIPS PROGRAM--Table of Contents

 

          Subpart G_Community Housing Development Organizations

 

Sec.  92.301  Project-specific assistance to community housing 

development organizations.



    (a) Project-specific technical assistance and site control loans--

(1) General. Within the percentage specified in Sec.  92.300(c), HOME 

funds may be used by a participating jurisdiction to provide technical 

assistance and site control loans to community housing development 

organizations in the early stages of site development for an eligible 

project. These loans may not exceed amounts that the participating 

jurisdiction determines to be customary and reasonable project 

preparation costs allowable under paragraph (a)(2) of this section. All 

costs must be related to a specific eligible project or projects.

    (2) Allowable costs. A loan may be provided to cover project costs 

necessary



[[Page 631]]



to determine project feasibility (including costs of an initial 

feasibility study), consulting fees, costs of preliminary financial 

applications, legal fees, architectural fees, engineering fees, 

engagement of a development team, option to acquire property, site 

control and title clearance. General operational expenses of the 

community housing development organization are not allowable costs.

    (3) Repayment. The community housing development organization must 

repay the loan to the participating jurisdiction from construction loan 

proceeds or other project income. The participating jurisdiction may 

waive repayment of the loan, in part or in whole, if there are 

impediments to project development that the participating jurisdiction 

determines are reasonably beyond the control of the borrower.

    (b) Project-specific seed money loans--(1) General. Within the 

percentage specified in Sec.  92.300(c), HOME funds may be used to 

provide loans to community housing development organizations to cover 

preconstruction project costs that the participating jurisdiction 

determines to be customary and reasonable, including, but not limited to 

the costs of obtaining firm construction loan commitments, architectural 

plans and specifications, zoning approvals, engineering studies, and 

legal fees.

    (2) Eligible sponsors. A loan may be provided only to a community 

housing development organization that has, with respect to the project 

concerned, site control (evidenced by a deed, a sales contract, or an 

option contract to acquire the property), a preliminary financial 

commitment, and a capable development team.

    (3) Repayment. The community housing development organization must 

repay the loan to the participating jurisdiction from construction loan 

proceeds or other project income. The participating jurisdiction may 

waive repayment of the loan, in whole or in part, if there are 

impediments to project development that the participating jurisdiction 

determines are reasonably beyond the control of the community housing 

development organization.