Page:United States Statutes at Large Volume 106 Part 5.djvu/293

 PUBLIC LAW 102-550—OCT. 28, 1992 106 STAT. 3931 able for occupancy only by families who (upon initial occupancy) have incomes of (A) less than 60 percent of the median income for the area, or (B) less than $20,000. Occupant families shall pay not more than 30 percent of the family income for rent. (d) SOCIAL SERVICES.— The demonstration program shall provide for appropriate social and supportive services to be made available to residents of housing assisted under the demonstration program and to other residents of the new town demonstration area, which may include rental and homeownership counseling, child care, job placement, educational programs, recreational and health care facilities and programs, and other appropriate services. (e) JOB CREATION AND TRAINING. —The demonstration program shall provide, to the extent practicable, that activities in connection with the demonstration program, including development of housing under subsection (c) and community development activities assisted under section 1106, shall employ and provide job training opportunities for residents of the housing assisted under the demonstration program and other residents of the new town demonstration area. (f) FINANCING.—The demonstration program shall provide for coordination with banks, credit unions, and other mortgage lenders to make financing available to purchasers of units developed under the demonstration program through mortgages eligible for insurance under section 1104, and shall give preference to such mortgage lenders who have offices located within or near the new town demonstration area. (g) SUPPORT FACILITIES.— The demonstration program shall encourage, facilitate, and provide for development of appropriate support facilities to serve residents in the housing developed under the program, including infrastructure and commercial facilities. (n) NON-FEDERAL FtJNDS. — The governing board carrying out the demonstration program shall ensure that not less than 25 percent of the total amounts used to carry out the demonstration f)rogram is provided from non-Federal sources, including State or ocal government funds, any salary paid to staff to carry out the demonstration program, the value of any time, services, and materials donated to carry out the program, the value of any donated building, and the value of any lease on a building. SEC. 1104. FEDERAL MORTGAGE INSURANCE. (a) IN GENERAL. —Pursuant to title II and section 251 of the National Housing Act, the Secretary shall (to the extent authority is available pursuant to subsection (d)) insure mortgages under this section involving properties upon which are located dwelling units described in section 1103(c)(3) of this Act that are developed under the new town demonstration programs carried out pursuant to this title. (b) MORTGAGE TERMS. — Mortgages insured under this section shall— (1) provide for periodic adjustments in the effective rate ofinterest charged, which— (A) for the first 5 years of the mortgage, shall be an annual rate of not more than 7 percent; and (B) after the expiration of such 5-year period, may increase on an annual basis, but— (i) shall be limiteid, with respect to any single interest rate increase, to not more than a 10-percent increase in the annual percentage rate; and

�