Page:United States Statutes at Large Volume 104 Part 5.djvu/961

 PUBLIC LAW 101-625—NOV. 28, 1990 104 STAT. 4283 SEC. 703. ESCROW ACCOUNTS. Section 501(e) of the Housing Act of 1949 (42 U.S.C. 1471(e)) is amended by inserting after the third sentence the following: "The Secretary shall pay the same rate of interest on escrowed funds as is required to be paid on escrowed funds held by other lenders in any State where State law requires payment of interest on escrowed funds, subject to appropriations to the extent that additional budget authority is necessary to carry out this sentence.". SEC. 704. REMOTE RURAL AREAS. (a) IN GENERAL.— Section 502 of the Housing Act of 1949 (42 U.S.C. 1472) is amended by adding at the end the following new subsection: "(f) REMOTE RURAL AREAS.— " (1) LOAN SUPPLEMENTS. — The Secretary may supplement any loan under this section to finance housing located in a remote rural area with a grant in an amount not greater than the amount by which the reasonable land acquisition and construction costs of the security property exceeds the appraised value of such property. "(2) PROHIBITION.—The Secretary may not refuse to make, insure, or guarantee a loan that otherwise meets the requirements under this section solely on the basis that the housing involved is located in an area that is excessively rural in character or excessively remote.". (b) REGULATIONS. —Not later than the expiration of the 120-day 42 USC 1472 period beginning on the date of enactment of this Act, the Secretary ^°^- of Agriculture shall issue any regulations necessary to carry out the * amendment made by subsection (a). SEC. 705. SECTION 502 DEFERRED MORTGAGE DEMONSTRATION. (a) IN GENERAL.—Section 502 of the Housing Act of 1949 (42 U.S.C. 1472), as amended by the preceding provisions of this Act, is further amended by adding at the end the following new subsection: "(g) DEFERRED MORTGAGE DEMONSTRATION. — "(1) AUTHORITY.—With respect to families or persons otherwise eligible for assistemce under subsection (d) but having incomes below the amount determined to qualify for a loan under this section, the Secretary may defer mortgage pa5anents beyond the amount affordable at 1 percent interest, taking into consideration income, taxes and insurance. Deferred mortgage payments shall be converted to payment status when the ability of the borrower to repay improves. Deferred amounts shall not exceed 25 percent of the amount of the payment due at 1 percent interest and shall be subject to recapture. "(2) INTEREST.— Interest on principal deferred shall be set at 1 percent and any interest payments deferred under this subsection shall not be treated as principal in calculating indebtedness. "(3) FUNDING. —Subject to approval in appropriations Acts, not more than 10 percent of the amount approved for each of fiscal years 1991 and 1992 for loans under this section may be used to carry out this subsection.". (b) REGULATIONS. —Not later than the expiration of the 120-day 42 USC 1472 period beginning on the date of enactment of this Act, the Secretary "ote. of Agriculture shall issue any regulations necessary to carry out the amendment made by subsection (a). -194O-91-31:QL3Part5

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