Page:United States Statutes at Large Volume 104 Part 5.djvu/808

 104 STAT. 4130 PUBLIC LAW 101-625—NOV. 28, 1990 42 USC 12852. SEC. 303. ASSISTANCE FOR FIRST-TIME HOMEBUYERS. (a) IN GENERAL. —The Trust shall provide assistance pa3anents for first-time homebuyers (including homebuyers buying shares in limited equity cooperatives) in the following manners: (1) INTEREST RATE BUYDOWNS.— Assistance payments so that the rate of interest payable on the mortgages by the homebuyers does not exceed 6 percent. (2) DOWNPAYMENT ASSISTANCE. —Assistance payments to provide amounts for downpayments (including closing costs and other costs payable at the time of closing) on mortgages for such homebuyers. (b) EuGiBiuTY REQUIREMENTS.— Assistance payments under this subtitle may be made only to homebuyers and for mortgages meeting the following requirements: (1) FIRST-TIME HOMEBUYER. — The homebuyer is an individual who— (A) (and whose spouse) has had no ownership in a principal residence during the 3-year period ending on the date of purchase of the property with respect to which assistance pa5anents are made under this subtitle; (B) is a displaced homemaker who, except for owning a home with his or her spouse or residing in a home owned by the spouse, meets the requirements of subparagraph (A); or (C) is a single parent who, except for owning a home with his or her spouse or residing in a home owned by the spouse while married, meets the requirements of subparagraph (A). (2) MAXIMUM INCOME OF HOMEBUYER. — The aggregate annual income of the homebuyer and the members of the family of the homebuyer residing with the homebuyer, for the 12-month period preceding the date of the application of the homebuyer for assistance under this subtitle, does not exceed— (A) 95 percent of the median income for a family of 4 persons (adjusted by family size) in the applicable metropolitan statistical area (or such other area that the Board of Directors determines for areas outside of metropolitan statistical areas); or (B) 115 percent of such median income (adjusted by family size) in the case of an area that is subject to a high cost area mortgage limit under title II of the National Housing Act. The Board of Directors shall provide for certification of such income for purposes of initial eligibility for assistance payments under this subtitle and shall provide for recertification of homebuyers (and families of homebuyers) so assisted not less than every 2 years thereafter. (3) CERTIFICATION. — The homebuyer (and spouse, where applicable) shall certify that the homebuyer has made a good faith effort to obtain a market rate mortgage and has been denied because the annual income of the homebuyer and the members of the family of the homebuyer residing with the homebuyer is insufficient. (4) PRINCIPAL RESIDENCE. —The property securing the mortgage is a single-family residence or unit in a cooperative and is the principal residence of the homebuyer.

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