State Codes and Statutes

Statutes > New-jersey > Title-20 > Section-20-4 > 20-4-17

20:4-17.  Loans for costs in planning and in obtaining financing for housing  for displaced persons
    In order to encourage and facilitate the construction or rehabilitation of housing to meet the needs of displaced persons who are displaced from dwellings  because of any Federal or State, or Federal or State financially assisted  project, the head of the Federal or State agency administering such project is  authorized to make loans as a part of the cost of any such project, or to  approve loans as a part of the cost of any such project receiving Federal  financial assistance, to nonprofit, limited dividend, or cooperative  organizations or to public bodies, for necessary and reasonable expenses, prior  to construction, for planning and obtaining Federally insured mortgage  financing for the rehabilitation or construction of housing for such displaced  persons.  Notwithstanding the preceding sentence, or any other law, such loans  shall be available for not to exceed 80% of the reasonable costs expected to be  incurred in planning, and in obtaining financing for, such housing, prior to  the availability of such financing, including, but not limited to, preliminary  surveys and analysis of market needs, preliminary site engineering, preliminary  architectural fees, site acquisition, application and mortgage commitment fees,  and construction loan fees and discounts.  Loans to an organization established for profit shall bear interest at a market rate established by the head of such  Federal or State agency.  All other loans shall be without interest. Such  Federal or State agency head shall require repayment of loans made under this  act, under such terms and conditions as he may require, upon completion of the  project or sooner, and except in the case of a loan to an organization  established for profit, may cancel any part or all of a loan if he determines  that a permanent loan to finance the rehabilitation or the construction of such housing cannot be obtained in an amount adequate for repayment of such loan. Upon repayment of any such loan, the Federal or State share of the sum repaid shall be credited to the account from which such loan was made, unless the Department of the Treasury determines that such account is no longer in existence, in which case such sum shall be returned to the treasury and credited to miscellaneous receipts.

     L.1971, c. 362, s. 17, eff. Jan. 1, 1972.