§1715z–6. Supplemental loans for multifamily projects — Inbound Citations

(5) Financing of capital improvements through provision of insurance for a second mortgage under section 1715z–6 of this title.

(B) for purposes of determining incentives under section¹ 4110 and 4111 of this title and determining the amount of an acquisition loan under the provisions of section 1715z–6(f)(3)² of this title—

(i) the preservation value of the housing determined under section 4103(b)(2) of this title; less

(ii) the outstanding balance of the federally-assisted mortgage or mortgages for the housing.

(7) Access by the owner to a portion of the preservation equity in the housing through provision of insurance for a second mortgage loan insured under section 1715z–6(f)² of this title or a non-insured mortgage loan approved by the Secretary and the mortgagee.

(A) For all qualified purchasers of housing under this subsection, the Secretary may provide assistance for an approved plan of action in the form of 1 or more of the incentives authorized under section 4109(b) of this title, except that the incentive under such section 4109(b)(7) of this title may include an acquisition loan under section 1715z–6(f)² of this title.

(i) directing the mortgagee, with respect to an equity take-out loan under section 1715z–6(f)¹ of this title, to withhold the disbursement to the owner of any escrowed loan proceeds and requiring that such proceeds be used for repair of the housing; and

(ii) In the case of housing for which an equity take-out loan has been made under section 1715z–6(f)¹ of this title, declare such loan to be in default and accelerate the maturity date of the loan.