the date of enactment of legislation appropriating funds under this Act.”.
(b) Section 103 of such Act16 USC 470c. is amended by adding at the end thereof the following:
“(c) A minimum of 10 per centum of the annual apportionment distributed by the Secretary to each State for the purposes of carrying out this Act shall be transferred by the State, pursuant to the requirements of this Act, to local governments which are certified under section 101(c) for historic preservation projects or programs of such local governments. In any year in which the total annual apportionment to the States exceeds $65,000,000, one half of the excess shall also be transferred by the States to local governments certified pursuant to section 101(c).
“(d)Funds, distribution guidelines. The Secretary shall establish guidelines for the use and distribution of funds under subsection (c) to insure that no local government receives a disproportionate share of the funds available, and may include a maximum or minimum limitation on the amount of funds distributed to any single local government. The guidelines shall not limit the ability of any State to distribute more than 10 per centum of its annual apportionment under subsection (c), nor shall the Secretary require any State to exceed the 10 per centum minimum distribution to local governments.”.
Sec. 204.Loan insurance.
16 USC 470d. Section 104 of the National Historic Preservation Act is amended to read as follows:
“Sec. 104. (a) The Secretary shall establish and maintain a program by which he may, upon application of a private lender, insure loans (including loans made in accordance with a mortgage) made by such lender to finance any project for the preservation of a property included on the National Register.
“(b) A loan may be insured under this section only if—
- “(1) the loan is made by a private lender approved by the Secretary as financially sound and able to service the loan properly;
- “(2) the amount of the loan, and interest rate charged with respect to the loan, do not exceed such amount, and such a rate, as is established by the Secretary, by rule;
- “(3) the Secretary has consulted the appropriate State Historic Preservation Officer concerning the preservation of the historic property;
- “(4) the Secretary has determined that the loan is adequately secured and there is reasonable assurance of repayment;
- “(5) the repayment period of the loan does not exceed the lesser of forty years or the expected life of the asset financed;
- “(6) the amount insured with respect to such loan does not exceed 90 per centum of the loss sustained by the lender with respect to the loan; and
- “(7) the loan, the borrower, and the historic property to be preserved meet other terms and conditions as may be prescribed by the Secretary, by rule, especially terms and conditions relating to the nature and quality of the preservation work.
Interest rates.The Secretary shall consult with the Secretary of the Treasury regarding the interest rate of loans insured under this section.
“(c) The aggregate unpaid principal balance of loans insured under this section and outstanding at any one time may not exceed the amount which has been covered into the Historic Preservation Fund pursuant to section 108 and subsections (g) and (i) of this section,16 USC 470h. as in effect on the date of the enactment of this Act but which has not been appropriated for any purpose.
