Protect Our Homes Act

This bill amends the Small Business Act to establish a new program called the Residential Common Area Repair Loan program, administered by the Small Business Administration (SBA). The program aims to provide supplemental disaster loans specifically to homeowner associations, referred to as "covered entities." These loans are designed to help associations address damage to their residential common areas caused by natural disasters or acts of God.

The program offers two distinct types of loans: repair loans and mitigation loans. Repair loans cover the costs of necessary repairs, rehabilitation, or replacement of common areas following a disaster. Mitigation loans are available to associations located in recent disaster areas, enabling them to implement measures that protect their property from potential future disasters. Eligibility for these supplemental loans requires the covered entity to have already met existing SBA disaster loan limits.

Loan amounts are generally capped at $500,000 for homeowner associations, though entities considered major sources of employment in a disaster area may qualify for up to $2,000,000. These loans feature interest rates tied to the average annual interest rate on U.S. public debt, plus a small adjustment, and can have durations of up to thirty years. Furthermore, collateral is not required for loans of $14,000 or less, and the SBA retains the authority to defer principal and interest payments.