Page:United States Statutes at Large Volume 106 Part 5.djvu/294

 106 STAT. 3932 PUBLIC LAW 102-550—OCT. 28, 1992 (ii) may not be increased at any time to a rate greater than the rate necessary at such time to fully amortize the outstanding loan balance over the term of the mortgage; and (2) have a maturity of 35 years from the date of the beginning of the amortization of the mortgage. (c) BOARD APPROVAL. — The Secretary may provide insurance under this section for a mortgage only if the governing board for the demonstration program for the new town demonstration area in which the property subject to the mortgage is located has indicated to the Secretary approval of the mortage in connection with the demonstration program. (d) INSURANCE AUTHORITY.— To the extent provided in appropriation Acts, the Secretary shall use any authority provided pursuant to section 531(b) of the National Housing Act to enter into commitments to insiire loans and mortgages under this section in fiscal years 1993 and 1994 with an aggregate principcQ amount not exceeding such sums as may be necessary to carry out the demonstration under this title. Mortgages insiu'ed under this section shall not be considered for purposes of the aggregate limitation on the number of mortgages insured under section 251 of the National Housing Act specified in subsection (c) of such section. SEC. IIOS. SECONDARY SOFT MORTGAGE FINANCING FOR HOUSING. (a) IN GENERAL.— The Secretary shall, to the extent amounts are provided in appropriation Acts under subsection (e), provide assistance under this section through the governing boards carrying out the new town demonstration programs under this section to assist in the development of housing under the program. (b) USE. —Any assistance provided under this section shall be used only for costs in planning, developing, constructing, and rehabilitating housing under the demonstration program available for rental or purchase by the occupant. The governing board shall determine, according to the new town plan for the demonstration program, the allocation of amounts of assistance provided under this section. (c) AMOUNT. —The Secretary may not provide assistance under this section for the development of housing under a demonstration program in an amount exceeding $50,000 per dwelling unit assisted. (d) SECOND MORTGAGE. — (1) IN GENERAL.— Assistance under this section shall be repaid in accordance with this subsection. Repayment of the amount of any assistance provided with respect to^ (A) any building containing rental units, or (B) any dwelling unit available for purchase by the occupant that is developed under a demonstration program, shall be secured by a second mortgage held by the Secretary on the property involved. (2) TERMS. —During the period ending upon repayment of the assistance as provided in this subsection, any building containing rental units that is provided assistance under this section shall be used as rental nousing subject to the requirements of section 1103(c)(4). During the period ending upon repa3anent of the assistance as provided in this subsection, any dwelling unit made available for purchase by the occupant that is provided assistance under tnis section may be sold

�