Page:United States Statutes at Large Volume 104 Part 5.djvu/801

 PUBLIC LAW 101-625—NOV. 28, 1990 104 STAT. 4123 (A) owned and occupied by low-income families who have received, are currently receiving, or are scheduled to receive assistance under the weatherization assistance for low-income persons program under part A of title IV of the Energy Conservation and Production Act (or a comparable Federal or State program); (B) in danger of becoming uninhabitable within a 5-year period because of structural weaknesses or problems; and (C) not sufficiently sound to permit energy conservation improvements without other repair or rehabilitation measures to protect such energy investments; (2) repairs that will significantly prolong the habitability of units identified under paragraph (1), including roofing, electrical, plumbing, furnace, and foundation repairs or replacement that will prolong the use of the unit as a safe and energy-efficient residence for low-income persons; and (3) reasonable steps to ensure that any units so repaired will remain occupied by persons or families eligible for assistance under this title. SEC. 258. SECOND MORTGAGE ASSISTANCE FOR FIRST-TIME HOME- 42 USC 12808. BUYERS. (a) IN GENERAL.—The Secretary shall make available a model program under which units of general local government provide loans (secured by second mortgages) with deferred payment of interest and principal to first-time homebuyers. (b) HoMEOWNERSHiP CouNSEUNG.— The program under this section shall provide for homeownership counseling to first-time homebuyers assisted, which shall include— (1) counseling before and after purchase of the property; (2) assisting first-time homebuyers in identifying the most suitable and affordable properties; (3) providing homebuyers with financial management assistance; (4) assisting homebuyers in understanding mortgage transactions and home sales contracts; and (5) assisting homebuyers with eliminating any credit problems that may prevent the homebuyers from purchasing the property. (c) EuGiBiiiTY REQUIREMENTS.— Deferred payment loans secured by second mortgages may be provided under the model program under this section if— (1) the homebuyer assisted is a first-time homebuyer; (2) the property secured by the second mortgage is a singlefamily residence and is the principal residence of the homebuyer; and (3) the principal obligation of the deferred payment loan secured by a second mortgage does not exceed 30 percent of the acquisition price of the residence to the homebuyer. (d) PAYMENT TERMS.— (1) PERIOD OF DEFERRAL. —The payment of any principal and • interest on a loan under this section shall be deferred for not less than the 5-year period beginning on the date of the acquisition of the residence by the homebuyer. (2) INTEREST RATE.— The interest rate on the unpaid balance of a loan under this section shall be at least 4 percent. 39-194O-91-26:QL3Part5

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