HUD Publishes FY 2004 Nominal Interest Rate for Section 202 and Section 811
The U.S. Department of Housing and Urban Development (HUD) today published the fiscal year 2004 nominal interest rate for the Section 202 and Section 811 Capital Advance programs. Under the programs, a capital advance bears no interest and its repayment is not required as long as the housing remains available for very low-income elderly persons or for very low-income persons with disabilities, for a period of 40 years, in accordance with Section 202 of the Housing Act of 1959, as amended, or Section 811 of the National Affordable Housing Act of 1990 (whichever is applicable). However, in the event of default, at the option of the HUD Secretary, the entire principal with interest becomes due and payable. The annual interest rate of 5.375 percent established in Housing Notice 2004-03 applies to the Section 202 and Section 811 projects that proceed to initial closing by September 30, 2004.