Page:United States Statutes at Large Volume 70.djvu/1150

 1094

12 USC xiXs^

12 USC m%.

PUBLIC LAW 1020-AUQ. 7, 1966

[70 S T A T.

involve a principal obligation in an amount not to exceed 85 per centum of the amount which the Commissioner estimates will be the replacement cost of the property or project when the proposed physical improvements are completed: Provided further, That upon the sale of a property or project by a mortgagor of the character described in paragraph (3) of subsection (a) to a nonprofit cooperative ownership housing corporation or trust within two years after the completion of such property or project, the mortgage ^iven to finance such sale shall involve a principal obligation m an amount not to exceed the maximum amount computed in accordance with this subsection without regard to the preceding proviso". ^^^ Section 213 of such Act is further amended by adding at the end thereof the following subsection: " (h) I n the event that a mortgagor of the character described in paragraph (3) of subsection (a) obtains an insured mortgage loan pursuant to this section and fails to sell the property or project covered by such mortgage to a nonprofit housing corporation or nonprofit housing trust of the character described in paragraph (1) of subsection (a) hereof, such mortgagor shall not thereafter be eligible by reason of such paragraph (3) for insurance of any additional mortgage loans pursuant to this section." (^) Paragraph (a) of section 227 of such Act is amended by inserting after "subsection (a) thereof" the following: "or with respect to any property or project of a mortgagor of the character described in paragraph (3) of subsection (a) thereof". GENERAL MORTGAGE INSURANCE AUTHORIZATION

stJJ 1*3^; ^^*' *^ 12 USC 1715 h.

SEC. 106. Section 217 of the National Housing Act is amended— (1) by striking out "July 1, 1955" in the first sentence and inserting in lieu thereof "July 1, 1956"; (2) by striking out "$4,000,000,000" in the first sentence and inserting in lieu thereof "$3,000,000,000"; and (3) by striking out "section 2" in the first and second sentences and inserting in lieu thereof "section 2 and section 803". HOUSING IN URBAN RENEWAL AREAS

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SEC. 107. (a) Section 220(d)(3)(B) (ii) of the National Housing Act is amended by inserting after "Commissioner" in the parenthetical phrase a comma and the following: "and shall include an allowance for builder's and sponsor's profit and risk of 10 per centum of all of the foregoing items except the land unless the Commissioner, after certification that such allowance is unreasonable, shall by regulation prescribe a lesser percentage". (b) Section 220(d)(3)(B) (iii) of such Act is amended by striking out in the first proviso thereof all that follows "construction and design" and inserting in lieu thereof a colon and the following: '•'•Provided, further, That the Commissioner may, by regulation, increase any of the foregoing dollar amount limitations by not to exceed $1,000 per room or per family unit, as the case may be, in any geographical area where he finds that cost levels so require". LOW-COST HOUSING FOR DISPLACED FAMILIES

12 USC 1*71%.

SEC. 108. Section 221(d) of the National Housing Act is amended— (1) by striking out "$7,600" in paragraphs (2) and (3) and inserting in lieu thereof "$9,000";

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