Page:United States Statutes at Large Volume 101 Part 3.djvu/598

 101 STAT. 1896

PUBLIC LAW 100-242—FEB. 5, 1988

pied for at least 6 months threatens the financial viability of the project.". SEC. 307. LIMITATION OF FEES ON RURAL RENTAL HOUSING LOANS.

Section 515 of the Housing Act of 1949 (as amended by section 263 of this Act) is further amended by adding at the end the following new subsection: "(s) No fee other than a late fee may be imposed by or for the Secretary or any other Federal agency on or with respect to a loan made or insured under this section.". SEC. 308. RURAL AREA CLASSIFICATION. 42 USC 1490.

(a) HOLD HARMLESS.—Section 520 of the Housing Act of 1949

is

amended by striking "March 15, 1988" in the last sentence and inserting "September 30, 1989". California.

(b) ELIGIBILITY OF RURAL AREA PROXIMATE TO URBAN AREA.—

Section 520 of the Housing Act of 1949 is amended in the first sentence by inserting before "part of or associated with" the following: "(except in the case of Pajaro, in the State of California)". SEC. 309. PROCEDURES FOR REDUCTION OF INTEREST CREDITS. Loans. 42 USC 1490a.

42 USC 1490m. Regulations.

Section 521(a)(1)(B) of the Housing Act of 1949 is amended by adding at the end the following new sentence: "In the case of assistance provided under this subparagraph with respect to a loan under section 502, the Secretary may not reduce, cancel, or refuse to renew the assistance due to an increase in the adjusted income of the borrower if the reduction, cancellation, or nonrenewal will cause the borrower to be unable to reasonably afford the resulting payments required under the loan.". SEC. 310. RURAL HOUSING PRESERVATION GRANT PROGRAM. Section 533(h) of the Housing Act of 1949 is amended— (1) by inserting "(1)" after the subsection designation; and (2) by adding at the end the following new paragraph: "(2) The Secretary shall, not later than the expiration of the 30day period following the date of the enactment of the Housing and Community Development Act of 1987 issue regulations to carry out the program of grants under subsection (a)(2).". SEC. 3 n. RURAL RENTAL REHABILITATION DEMONSTRATION.

42 USC 1490m note.

Grants.

(a) ESTABLISHMENT OF DEMONSTRATION.—The Secretary of Housing and Urban Development (referred to in this section as the "Secretary") shall carry out a rural rental rehabilitation demonstration program in accordance with this section. (b) AVAILABILITY OF AMOUNTS.—For purposes of the demonstration program, any rental rehabilitation grant amount provided to a State under section 17 of the United States Housing Act of 1937 that is unutilized from any prior fiscal year shall be available for use in areas eligible for assistance under title V of the Housing Act of 1949. (c) REPORT TO CONGRESS.—The Secretary shall submit to the Congress as soon as practicable after September 30, 1989, a report setting forth the findings and recommendations of the Secretary as a result of the demonstration program. The report shall include an evaluation of the following: (1) The effectiveness of the program in meeting the need for the rehabilitation of rental housing in rural areas. (2) The extent of participation by the owners of rental properties in the program.

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