Section 220

Citation: Section 220
Parent Document: Tenants' Council of Tiber Island-Carrollsburg Square v. James Lynn, Individually and in His Capacity as Secretary of Housing and Urbandevelopment, 497 F.2d 648 (1973)
Jurisdiction: United States (federal)
Effective Date: 1973-12-20
Original Source: https://www.courtlistener.com/opinion/319420/tenants-council-of-tiber-island-... ↗

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The development plan centered on enlisting the aid of private investors. It was contemplated that they would insist upon a high return and low equity requirements before committing private capital to redevelopment of slum areas.3 Section 220 of the Housing Act of 1954 was to serve as the vehicle. Under the program envisioned, developers could acquire land in urban renewal areas, after it had been written down in cost by the local agencies,4 mortgage loan terms would be available for 90% Of the value of the construction subject to a $50,000,000 limit,5 and the FHA would guarantee repayment of the loan. The guarantee, which insured in large part against the lender's risks, made money available at low enough rates of interest to support the required rate of return, given the predicted market rentals for the area.6

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