ABSTRACT
The rehabilitation loan fund, sometimes referred to as the section 312 housing program, provides low-interest loans for the rehabilitation of single-and multifamily dwellings as well as a small number of commercial properties. The loan fund is specifically intended to promote the revitalization of distressed areas. President Jimmy Carter’s proposed budget estimated that 12,500 units would be rehabilitated using 1982 funding. This program is a revolving fund, which means that both loan repayments and new budget authority provide funding for new loans. The rehabilitation loan fund goes through the normal appropriations process. The omnibus reconciliation act essentially abolished this program. The repayments to the loan fund can be reissued as new loans in fiscal year 1982, but not in future years. The rehabilitation loan fund will have been eliminated by the end of fiscal year 1982. The effects on states and localities will vary depending upon the extent of their housing programs.
