Page:United States Statutes at Large Volume 114 Part 5.djvu/936

 114 STAT. 2950 PUBLIC LAW 106-569 —DEC. 27, 2000 paragraph (1) of this subsection, which shall take effect not later than the expiration of the 180-day period beginning on Notice. the date of the enactment of this Act. The regulations shall be issued after notice and opportunity for public comment in accordance with the procedure under section 553 of title 5, United States Code, applicable to substantive rules (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of such section). (b) HOUSING COOPERATIVES.— Section 255(b) of the National Housing Act (12 U.S.C. 1715z-20(b)) is amended— (1) in paragraph (2), by striking " 'mortgage',"; and (2) by adding at the end the following new paragraphs: "(4) MORTGAGE. —The term 'mortgage' means a first mortgage or first lien on real estate, in fee simple, on all stock allocated to a dwelling in a residential cooperative housing corporation, or on a leasehold— "(A) under a lease for not less than 99 years that is renewable; or "(B) under a lease having a period of not less than 10 years to run beyond the maturity date of the mortgage. "(5) FIRST MORTGAGE.— The term 'first mortgage' means such classes of first liens as are commonly given to secure advances on, or the unpaid purchase price of, real estate or all stock allocated to a dwelling unit in a residential cooperative housing corporation, under the laws of the State in which the real estate or dwelling unit is located, together with the credit instruments, if any, secured thereby.". (c) WAIVER OF UP-FRONT PREMIUMS FOR MORTGAGES USED TO FUND LONG-TERM CARE INSURANCE. — (1) IN GENERAL.—Section 255 of the National Housing Act (12 U.S.C. 1715z-20) is amended by inserting after subsection (k) (as added by subsection (a) of this section) the following new subsection: "(1) WAIVER OF UP-FRONT PREMIUMS FOR MORTGAGES TO FUND LONG-TERM CARE INSURANCE. — "(1) IN GENERAL. —In the case of any mortgage insured under this section under which the total amount (except as provided in paragraph (2)) of all future payments described in subsection (b)(3) will be used only for costs of a qualified long-term care insurance contract that covers the mortgagor or members of the household residing in the property that is subject to the mortgage, notwithstanding section 203(c)(2), the Secretary shall not charge or collect the single premium payment otherwise required under subparagraph (A) of such section to be paid at the time of insurance. "(2) AUTHORITY TO REFINANCE EXISTING MORTGAGE AND FINANCE CLOSING COSTS.— ^A mortgage described in paragraph (1) may provide financing of amounts that are used to satisfy outstanding mortgage obligations (in accordance with such limitations as the Secretary shall prescribe) and any amounts used for initial service charges, appraisal, inspection, and other fees (as approved by the Secretary) in connection with such mortgage, and the amount of future pa5anents described in subsection (b)(3) under the mortgage shall be reduced accordingly. "(3) DEFINITION. —For purposes of this subsection, the term 'qualified long-term care insurance contract' has the meaning given such term in section 7702B of the Internal Revenue

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