1. (a) The department may make loans under the program only to:

   1. (1) colonia self-help centers established under Subchapter Z; and
   2. (2) community housing development organizations certified by the department.

2. (b) A loan made under the program may be used only for the payment of:

   1. (1) costs associated with the purchase of real property;
   2. (2) costs of surveying, platting, and subdividing or resubdividing real property;
   3. (3) fees, insurance costs, or recording costs associated with the development of the subdivision;
   4. (4) costs of providing proper infrastructure necessary to support residential uses;
   5. (5) real estate commissions and marketing fees; and
   6. (6) any other costs as the department by rule determines to be reasonable and prudent to advance the purposes of this subchapter.
3. (c) A loan made by the department under the program may not bear interest and may not exceed a term of 36 months.
4. (d) The department may offer a borrower under the program one loan renewal for each subdivision.

Added by Acts 2001, 77th Leg., ch. 1367, Sec. 2.13, eff. Sept. 1, 2001.