MARVIN MANDEL, Governor

1285

WITHIN THE COUNTIES.

(3)    EACH POLITICAL SUBDIVISION CERTIFIED BY
THE DEPARTMENT AS CAPABLE OF ADMINISTERING A
REHABILITATION PROGRAM WAY ORIGINATE AND ADMINISTER LOANS
MADE BY THE DEPARTMENT FROM THE ANNUAL ALLOCATION OR
SUBALLOCATION TO THE POLITICAL SUBDIVISION, IN ACCORDANCE
WITH REGULATIONS PROMULGATED BY THE DEPARTMENT. THE
DEPARTMENT SHALL, BY REGULATION, ESTABLISH CRITERIA FOR
DETERMINING CAPABILITY WHICH SHALL INCLUDE THE SIZE,
TRAINING, AND EXPERIENCE OF THE PROFESSIONAL STAFF
RESPONSIBLE FOR THE ADMINISTRATION OF A PROGRAM AND THE
CAPABILITIES OF THE STAFF FOR DETERMINING LOCAL
REHABILITATION NEEDS, FOR ESTABLISHING REHABILITATION
PROGRAMS, FOR EVALUATING APPLICATIONS FOR REHABILITATION
LOANS, AND FOR MONITORING THE LOANS AND THE
REHABILITATION WORK DONE UNDER THESE LOANS. IF THE
DEPARTMENT DETERMINES THAT A POLITICAL SUBDIVISION IS NOT
CAPABLE OR DOES NOT DESIRE TO ADMINISTER A REHABILITATION
PROGRAM, THE DEPARTMENT MAY ORIGINATE AND ADMINISTER
LOANS FROM THE ANNUAL ALLOCATION OR SUBALLOCATION TO THAT
POLITICAL SUBDIVISION.

(4)    THE DEPARTMENT MAY ASSIST IN TRAINING
EMPLOYEES OF POLITICAL SUBDIVISIONS TO HELP ACHIEVE AND
INCREASE THEIR CAPABILITY TO ADMINISTER REHABILITATION
PROGRAMS IN ACCORDANCE WITH THE CRITERIA DETERMINED BY
THE DEPARTMENT. THE DEPARTMENT MAY PROVIDE TECHNICAL
ASSISTANCE AND ADVICE TO THE POLITICAL SUBDIVISIONS ON
THE ADMINISTRATION OF THEIR REHABILITATION PROGRAMS.

(5)    THE DEPARTMENT SHALL CONSULT FROM TIME
TO TIME WITH AN ADVISORY COUNCIL WHICH CONSISTS OF EIGHT
MEMBERS APPOINTED BY THE SECRETARY OF THE DEPARTMENT, AT
LEAST FIVE OF WHOM SHALL BE REPRESENTATIVES OF POLITICAL
SUBDIVISIONS.

(6)    LOANS SHALL BE MADE FROM THE FUND TO
FAMILIES OF LIMITED INCOME OWNING AND OCCUPYING THE
BUILDING TO BE REHABILITATED, OR TO SPONSORS. LOANS MAY
BE EITHER INSURED OR UNINSURED AS THE DEPARTMENT
REQUIRES, AND SHALL BE AT A RATE OF INTEREST AT LEAST
EQUAL TO THE RATE OF INTEREST PAID BY THE STATE ON THE
BONDS ISSUED TO ESTABLISH THE FUND PLUS AN AMOUNT
CALCULATED TO COVER ADMINISTRATIVE COSTS INCURRED BY THE
DEPARTMENT FOR THE PROGRAM, AND LOSSES RESULTING FROM
DEFAULTS ON LOANS. LOANS MAY NOT EXCEED AN AMOUNT THE
SECRETARY SHALL ESTABLISH BY REGULATION AND THEY MAY NOT
BE MADE WHERE COMPARABLE PRIVATE FINANCING IS AVAILABLE
TO THE PROSPECTIVE BORROWERS. LOANS OVER $3,500 SHALL BE
SECURED BY A RECORDED MORTGAGE ON THE PROPERTY.

(7)    THE DEPARTMENT SHALL ESTABLISH A MAXIMUM
PERCENTAGE OR AMOUNT OF LOANS MADE FROM THE FUND WHICH