Page:United States Statutes at Large Volume 101 Part 3.djvu/557

 PUBLIC LAW 100-242—FEB. 5, 1988

101 STAT. 1855

"(i) is included in a mortgage secured by the project; and "(ii) the lender is a State housing finance agency or the project is financed by bonds issued by a State housing finance agency or similar local entity. "(B) The amount of any developer's fee shall not be counted in calculating the maximum grant amount pursuant to paragraph (4)(B). "(C) This paragraph shall only be applicable to projects with respect to which a notice of project selection is received before the date of the enactment of the Housing and Community Development Act of 1987.". SEC. 152. TERMINATION OF RENTAL DEVELOPMENT GRANT PROGRAM.

42 USC 1437o.

(a) IN GENERAL.—Effective on October 1, 1989, the rental development grant program under section 17(d) of the United States Housing Act of 1937 shall terminate. (b) SAVINGS PROVISION.—The provisions of subsection (a) shall not apply with respect to any housing development grant under section 17(d) of the United States Housing Act of 1937 made pursuant to a reservation of funds made by the Secretary of Housing and Urban Development before October 1, 1989.

Subtitle B—Other Housing Assistance Programs SEC. 161. HOUSING FOR THE ELDERLY AND HANDICAPPED.

(a) BORROWING AUTHORITY.—The first sentence of section 202(a)(4)(B)(i) of the Housing Act of 1959 is amended— 12 USC I70lq. (1) by striking "and" the first place it appears; and (2) by inserting after "1984," the following: "and to such sums as may approved in appropriation Acts for fiscal years 1988 and 1989,'\ (b) LOAN AUTHORITY.—Section 202(a)(4)(C) of the Housing Act of

1959 is amended by adding at the end the following new sentence: "For fiscal years 1988 and 1989, not more than $621,701,000 and $630,000,000, respectively, may be approved in appropriation Acts for such loans.". (c) INTEREST RATE ON LOANS.—

(1) CALCULATION OF RATE.—Section 202(a)(3) of the Housing Act of 1959 is amended— (A) by inserting "(A)" after the paragraph designation; (B) by striking all that follows Secretary" the second place it appears through "loan is made" and inserting the following: "taking into consideration the average yield, during the 3-month period immediately preceding the fiscal year in which the loan is made, on the most recently issued 30-year marketable obligations of the United States"; and (C) by adding at the end the following new subparagraph: "(B) At the option of the borrower, a loan under this section may be made and may be processed for a conditional or firm commitment either (i) at an interest rate not to exceed a rate and allowance determined by the Secretary in accordance with subparagraph (A) using the 1-month period immediately prior to the month in which the request for a commitment is submitted; or (ii) at an interest rate not to exceed a rate and allowance determined by the Secretary in

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