Use of Revolving Funds Under New Community Development Program

A determination was requested as to whether the Secretary of Housing and Urban Development (HUD) may use funds from the revolving fund established by the Urban Growth and New Community Development Act of 1970 to acquire, handle, and dispose of property for which debentures were guaranteed by HUD if it is anticipated that such action will result in losses for HUD greater than those which would be incurred by payment on the guaranteed debentures. The Secretary has broad authority under the act in selecting a course of action when a developer is in financial difficulty and HUD has acquired the property and is not restricted to the alternative that would minimize the loss to the Government.