Rural Housing Programs.

Sec. 735. Rural Housing Programs. (a) Housing in Underserved Areas Program.—The first sentence of section 509(f)(4)(A) of the Housing Act of 1949 (42 U.S.C. 1479(f)(4)(A)) is amended by striking “fiscal year 1997” and inserting “fiscal year 1998”. (b) Housing and Related Facilities for Elderly Persons and Families and Other Low-Income Persons and Families.— (1) Authority to make loans.—Section 515(b)(4) of the Housing Act of 1949 (42 U.S.C. 1485(b)(4)) is amended by striking “September 30, 1997” and inserting “September 30, 1998”. (2) Set-aside for nonprofit entities.—The first sentence of section 515(w)(1) of the Housing Act of 1949 (42 U.S.C. 1485(w)(1)) is amended by striking “fiscal year 1997” and inserting “fiscal year 1998”. (3) Loan term.—Section 515 of the Housing Act of 1949 (42 U.S.C. 1485) is amended— (A) in subsection (a)(2), by striking “up to fifty” and inserting “up to 30”; and (B) in subsection (b)— (i) by striking paragraph (2) and inserting the following: “(2) such a loan may be made for a period of up to 30 years from the making of the loan, but the Secretary may provide for periodic payments based on an amortization schedule of 50 years with a final payment of the balance due at the end of the term of the loan;”; (ii) in paragraph (5), by striking “and” at the end;111 STAT. 2111 (iii) in paragraph (6), by striking the period at the end and inserting and”; and (iv) by adding at the end the following: “(7) the Secretary may make a new loan to the current borrower to finance the final payment of the original loan for an additional period not to exceed twenty years, if— “(A) the Secretary determines— “(i) it is more cost-efficient and serves the tenant base more effectively to maintain the current property than to build a new property in the same location; or “(ii) the property has been maintained to such an extent that it warrants retention in the current portfolio because it can be expected to continue providing decent, safe, and affordable rental units for the balance of the loan; and “(B) the Secretary determines— “(i) current market studies show that a need for low-income rural rental housing still exists for that area; and “(ii) any other criteria established by the Secretary has been met.”. (c) Loan Guarantees for Multifamily Rental Housing in Rural Areas.—Section 538 of the Housing Act of 1949 (42 U.S.C. 1490p–2) is amended— (1) in subsection (q), by striking paragraph (2) and inserting the following: “(2) Annual limitation on amount of loan guarantee.—In each fiscal year, the Secretary may enter into commitments to guarantee loans under this section only to the extent that the costs of the guarantees entered into in such fiscal year do not exceed such amount as may be provided in appropriation Acts for such fiscal year.”; (2) by striking subsection (t) and inserting the following: “(t) Authorization of Appropriations.—There are authorized to be appropriated for fiscal year 1998 for costs (as such term is defined in section 502 of the Congressional Budget Act of 1974) of loan guarantees made under this section such sums as may be necessary for such fiscal year.”; and (3) in subsection (u), by striking “1996” and inserting “1998”.111 STAT. 2112 This Act may be cited as the “Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1998”.