Page:United States Statutes at Large Volume 106 Part 5.djvu/109

 PUBLIC LAW 102-550 —OCT. 28, 1992 106 STAT. 3747 "(E) Any other provisions of this Act that are inconsistent with the provisions of this subsection. " (7) REVERSION TO RENTAL STATUS.— "(A) FHA-INSURED MORTGAGES. —If a family receiving assistance under this subsection for occupancy of a dwelling defaults under a mortgage for the dwelling insured by the Secretary under the National Housing Act, the family may not continue to receive rental assistance under this section unless the family (i) transfers to the Secretary marketable title to the dwelling, (ii) moves from the dwelling within the period established or approved by the Secretary, and (iii) agrees that any amounts the family is required to pay to reimburse the escrow account under section 23(d)(3) may be deducted by the public housing agency from the assistance payment otherwise payable on behalf of the family. "(B) OTHER MORTGAGES. — If a family receiving assistance under this subsection defaults under a mortgage not insured under the National Housing Act, the family may not continue to receive rental assistance under this section unless it complies with requirements established by the Secretary. "(C) ALL MORTGAGES.— ^A family receiving assistance under this subsection that defaults under a mortgage may not receive assistance under this subsection for occupancy ~^ of another dwelling owned by one or more members of the family. " (8) DEFINITION OF FIRST-TIME HOMEOWNER.—For purposes of this subsection, the term 'first-time homeowner* means— "(A) a family, no member of which has had a present ownership interest in a principal residence during the 3 years preceding the date on which the family initially receives assistance for homeownership under this subsection; and "(B) any other family, as the Secretary may prescribe.". (b) FAMILY SELF-SUFFICIENCY PROGRAM.— Section 23(d) of the United States Housing Act of 1937 (42 U.S.C. 1437u) is amended by adding at the end the following new paragraph: (3) USE OF ESCROW SAVINGS ACCOUNTS FOR SECTION S HOMEOWNERSHIP.— Notwithstanding paragraph (3), a family that uses assistance under section 8(y) to purchase a dwelling may use up to 50 percent of the amount in its escrow account established under paragraph (3) for a downpayment on the dwelling. In addition, after the family purchases the dwelling, the family may use any amounts remaining in the escrow account to cover the costs of major repair and replacement needs of the dwelling. If a family defaults in connection with the loan to purchase a dwelling and the mortgage is foreclosed, the remaining amounts in the escrow accoiuit shall be recaptured by the Secretary.". (c) USE OF FHA INSURANCE WITH SECTION 8 HOMEOWNER- SHIP.— (1) IN GENERAI..— Section 203 of the National Housing Act (12 U.S.C. 1709) is amended— (A) in the matter preceding subparagraph (A) in subsection (c)(2), by inserting "or of the General Insurance Fund pursuant to subsection (v)" after "Fund"; and

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