; and (ii) is not longer than the expected design life of the project; (D) the recipient of the loan demonstrates that there is a dedicated source of revenue or adequate income to repay the loan; and (E) payments of principal and interest with respect to the loan will be deposited into the State loan fund; (2) to buy or refinance the debt obligation of a local government at an interest rate that is not more than the market interest rate; (3) to guarantee, or purchase insurance for, a local obligation, the proceeds of which finance a project eligible for assistance under this section, if the guarantee or purchase, as applicable, would— (A) improve credit market access; or (B) reduce the interest rate with respect to the obligation; (4) as a source of revenue or as security for the payment of principal and interest on revenue or general obligation bonds issued by the State if the proceeds of the sale of the bonds will be deposited into the State loan fund; or (5) to earn interest on those amounts. (h) Assistance for low-Income homeowners and low-Income geographic areas (1) In general Notwithstanding any other provision of this section, if a participating State uses amounts from a State loan fund to provide financial assistance under subsection (c) in a low-income geographic area or to a low-income homeowner, the State may provide additional subsidization to the recipient of the assistance, including forgiveness of the principal of a loan. (2) Limitation For each fiscal year, the total amount of additional subsidization provided by a participating State under paragraph (1) may not exceed 30 percent of the amount of the capitalization grant allocated to the State for that fiscal year. (i) Administration of fund (1) In general A participating State may combine the financial administration of a State loan fund with the financial administration of any other revolving fund established by the State if— (A) combining the administration of the funds would— (i) be convenient and avoid administrative costs