; Public Law 112–55 ); and (2) the term necessary physical improvements means new construction or capital improvements to an existing multifamily housing project that the Secretary determines are necessary to address the deficiencies or that rise to such a level that delaying physical improvements to the project would be detrimental to the longevity of the project as suitable housing for occupancy. (b) Authority To such extent or in such amounts as provided in appropriations Acts, the Secretary of Housing and Urban Development (in this section referred to as the Secretary ) may offer capital assistance under this section to owners or sponsors of eligible multifamily housing projects for the purpose of ensuring the long-term preservation of safe, affordable housing. (c) Eligible costs The Secretary may use funds under this section for— (1) the cost of providing direct loans, which may be forgivable, and the costs of modifying such loans, to owners or sponsors of distressed multifamily housing projects for the purpose of making necessary physical improvements, including to subsidize gross obligations for the principal amount of such loans, subject to the terms and conditions in subsection (d), to fund projects that improve physical conditions; and (2) administering the implementation of this section, including— (A) the cost of contracts or cooperative agreements to support implementation