[Code of Federal Regulations]

[Title 7, Volume 15]

[Revised as of January 1, 2006]

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

[CITE: 7CFR3560.74]



[Page 498]

 

                          TITLE 7--AGRICULTURE

 

     CHAPTER XXXV--RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE

 

PART 3560_DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS--Table of Contents

 

               Subpart B_Direct Loan and Grant Origination

 

Sec. 3560.74  Loan for final payments.



    (a) Use. The Agency may finance final payments for borrowers holding 

existing loans for which the Agency approved an amortization period that 

exceeded the term of the loan.

    (b) Requirements. The Agency may finance final payments if 

documentation regarding the market area shows that a need for low-income 

rental housing still exists for that area and one of the following 

conditions has been met.

    (1) It is more cost efficient and serves the tenant base more 

effectively to maintain existing MFH than to build another property in 

the same location; or

    (2) The MFH has been maintained to such an extent that it can be 

expected to continue providing affordable, decent, safe and sanitary 

housing for 20 years beyond the date of the loan to finance a final 

payment; and

    (3) Funds are available.

    (c) Term. The term of Agency loans to finance final payments will 

not exceed 20 years from the date of the initial loan final payment.