---
kind: "section"
citation: "42 U.S.C. § 12772"
title: "42"
title_heading: "The Public Health and Welfare"
number: "12772"
heading: "Project-specific assistance to community housing development organizations"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/12772"
units:
  - "Chapter 130 — National Affordable Housing"
  - "Subchapter II — Investment in Affordable Housing"
  - "Part B — Community Housing Partnership"
---

# §12772. Project-specific assistance to community housing development organizations

- (a) **In general—** Amounts reserved under [section 12771 of this title](/usc/42/12771.md) may be used for activities eligible under [section 12742 of this title](/usc/42/12742.md) and, in amounts not to exceed 10 percent of the amounts so reserved, for other activities specified under this section.
- (b) **Project-specific technical assistance and site control loans—**
  - (1) **In general—** Amounts reserved under [section 12771 of this title](/usc/42/12771.md) may be used to provide technical assistance and site control loans to [community housing development organizations](/usc/42/12704.md?p=6) in the early stages of site development for an eligible [project](/usc/42/13641.md?p=2). Such loans shall not exceed amounts that the [jurisdiction](/usc/42/12704.md?p=3) determines to be customary and reasonable [project](/usc/42/13641.md?p=2) preparation costs allowable under [paragraph (2)](#b-2).
  - (2) **Allowable expenses—** A loan under this subsection may be provided to cover [project](/usc/42/13641.md?p=2) expenses necessary to determine [project](/usc/42/13641.md?p=2) 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, site control and title clearance.
  - (3) **Repayment—** A [community housing development organization](/usc/42/12704.md?p=6) that receives a loan under this subsection shall repay the loan to the [participating jurisdiction](/usc/42/12704.md?p=4)’s HOME Investment Trust Fund from [construction](/usc/42/300s–3.md?p=7) loan proceeds or other [project](/usc/42/13641.md?p=2) income. The [participating jurisdiction](/usc/42/12704.md?p=4) may waive repayment of the loan, in part or in whole, if there are impediments to [project](/usc/42/13641.md?p=2) development that the [participating jurisdiction](/usc/42/12704.md?p=4) determines are reasonably beyond the control of the borrower.
- (c) **Project-specific seed money loans—**
  - (1) **In general—** Amounts reserved under [section 12771 of this title](/usc/42/12771.md) may be used to provide loans to [community housing development organizations](/usc/42/12704.md?p=6) to cover preconstruction [project](/usc/42/13641.md?p=2) costs that the [jurisdiction](/usc/42/12704.md?p=3) determines to be customary and reasonable, including, but not limited to the costs of obtaining firm [construction](/usc/42/300s–3.md?p=7) loan commitments, architectural plans and specifications, zoning approvals, engineering studies and legal fees.
  - (2) **Eligible sponsors—** A loan under this subsection may be provided only to a [community housing development organization](/usc/42/12704.md?p=6) that has, with respect to the [project](/usc/42/13641.md?p=2) concerned, site control, a preliminary financial commitment, and a capable development team.
  - (3) **Repayment—** A [community housing development organization](/usc/42/12704.md?p=6) that receives a loan under this subsection shall repay the loan to the [jurisdiction](/usc/42/12704.md?p=3)’s HOME Investment Trust Fund from [construction](/usc/42/300s–3.md?p=7) loan proceeds or other [project](/usc/42/13641.md?p=2) income. The [participating jurisdiction](/usc/42/12704.md?p=4) may waive repayment of the loan, in whole or in part, if there are impediments to [project](/usc/42/13641.md?p=2) development that the [participating jurisdiction](/usc/42/12704.md?p=4) determines are reasonably beyond the control of the borrower.

## Source credit

(Pub. L. 101–625, title II, § 232, Nov. 28, 1990, 104 Stat. 4115.)