§2051. General authority — Inbound Citations

Citations to 38 U.S.C. § 2051 as a whole

• 38 U.S.C. § 2052(a)

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  (a) A loan referred to in section 2051 of this title meets the requirements of this subchapter if each of the following requirements is met:

  (1) The loan—

  (A) is for—

  (i) construction of, rehabilitation of, or acquisition of land for a multifamily transitional housing project described in subsection (b), or more than one of such purposes; or

  (ii) refinancing of an existing loan for such a project; and

  (B) may also include additional reasonable amounts for—

  (i) financing acquisition of furniture, equipment, supplies, or materials for the project; or

  (ii) in the case of a loan made for purposes of subparagraph (A)(i), supplying the organization carrying out the project with working capital relative to the project.

  (2) The loan is made in connection with funding or the provision of substantial property or services for such project by either a State or local government or a nongovernmental entity, or both.

  (3) The maximum loan amount does not exceed the lesser of—

  (A) that amount generally approved (utilizing prudent underwriting principles) in the consideration and approval of projects of similar nature and risk so as to assure repayment of the loan obligation; and

  (B) 90 percent of the total cost of the project.

  (4) The loan is of sound value, taking into account the creditworthiness of the entity (and the individual members of the entity) applying for such loan.

  (5) The loan is secured.

  (6) The loan is subject to such terms and conditions as the Secretary determines are reasonable, taking into account other housing projects with similarities in size, location, population, and services provided.