Page:United States Statutes at Large Volume 106 Part 5.djvu/99

 PUBLIC LAW 102-550—OCT. 28, 1992 106 STAT. 3737 shall be deposited in the Fund and shall remain available until expended, subject to the provisions of section 311.". (c) USE OF TRUST AMOUNTS IN CONNECTION WITH MORTGAGE REVENUE BONDS.— (1) IN GENERAL.—Section 303 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12852) is amended by adding at the end the following new subsection: "(e) ASSISTANCE IN CONNECTION WITH HOUSING FINANCED WITH MORTGAGE REVENUE BONDS.— "(1) AUTHORTTf.— The Trust shall provide assistance for first-time homebuyers in the form of interest rate buydowns and downpayment assistance under this subsection. Such assistance shall be: available only with respect to mortgages for the purchase of residences (A) financed with the proceeds of a qualified mortg;age bond (as such term is defined in section 143 of the Internal Revenue Code of 1986), or (B) for which a credit is allowable under section 25 of such Code. "(2) ELIGIBILITY. — To be eligible for assistance under this subsection, homebuyers and mortgages shall also meet the requirements under subsection (b) of this section, except that— "(A) the certification under subsection (b)(3) shall not be required for assistance under this subsection; "(B) the provisions of subsection (b)(2) shall not apply to assistance under this section; and "(C) the aggregate 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 subsection, shall not exceed 80 percent of the median income for a family of 4 persons (as adjusted for family size) in the applicable metropolitan statistical area. "(3) LIMITATION OF ASSISTANCE.—Notwithstanding subsection (a), assistance payments for first-time homebuyers under this subsection shall be provided in the following manners: "(A) INTEREST RATE BUYDOWNS. —Assistance payments to decrease the rate of interest payable on the mortgages by the homebuyers, in an amount not exceeding— "(i) in the first year of the mortgage, 2.0 percent of the total principal obligation of the mortgage; "(ii) in the second year of the mortgage, 1.5 percent of the total principal obligation of the mortgage; "(iii) in the third year of the mortgage, 1.0 percent of the total principal obligation of the mortgage; and "(iv) in the fourth year of the mortgage, 0.5 percent of the total principal obligation of the mortgage. "(B) DOWNPAYMENT ASSISTANCE. — Assistance payments to provide amounts for downpayments on mortgages by the homebuyers, in an amount not exceeding 2.5 percent of the principal obligation of the mortgage. "(3) AVAILABILITY.—The Trust may make assistance pay- ments under subparagraphs (A) and (B) of paragraph (3) with respect to a single mortgage of a homebuyer.. (2) CONFORMING AMENDMENT. —Section 303(a) of the Cranston-(jk)nzalez National Affordable Housing Act (42 U.S.C. 12852(a)) is amended by adding at the end the following new paragraph:

�