Section 515 Owner Can Prepay Loan, Remove Use Restrictions Because ELIHPA Conditions Were Satisfied

摘要

A Section 515 project owner can prepay her loan and remove the low-income use restrictions on the property, the U.S. District Court for the District of Oregon ruled, directing the U.S. Department of Agriculture (USDA) to implement the determination of its National Appeals Division (NAD) that the Emergency Low-Income Housing Preservation Act (ELIPHA) prepayment requirements had been met.rnWhen plaintiff Alberta E. Schroeder acquired the project in 1984, it was subject to a 20-year use restriction. At the end of the 20-year period in 2004, Schroeder attempted to prepay the loan, but the Rural Housing Service (RHS) rejected the payment, asserting that she had failed to comply with ELIHPA.