---
kind: "section"
citation: "42 C.F.R. § 51c.506"
title: "42"
number: "51c.506"
heading: "Use of grant funds."
url: "https://uscodex.org/cfr/42/51c.506"
---

# §51c.506. Use of grant funds.


Grant funds may be used to amortize the principal of or pay interest on a loan or mortgage on an existing building acquired under this part, including a building purchased by a grantee prior to the promulgation of this part, but only if the building is being used for the purposes of [section 330](/cfr/42/330.md) and complies with the applicable provisions of this subpart and only to the extent the Secretary finds such principal amounts and interest rates to be reasonable.


## Notes

### Amendments

[41 FR 5700, Dec. 30, 1976]

### Authority

Authority: Sec. 330, Public Health Service Act, 89 Stat. 342, (42 U.S.C. 254b); sec. 215, Public Health Service Act, 58 Stat. 690, (42 U.S.C. 216).

### Source

Source: 41 FR 53205, Dec. 3, 1976, unless otherwise noted.

### Amendments

[41 FR 5700, Dec. 30, 1976]