Page:United States Statutes at Large Volume 80 Part 1.djvu/1306

 1270

42 USC* ^fa^o 68 Stat. 599.

75 Stat. 153. 12 USC 1720.

PUBLIC LAW 89-754-NOV. 3, 1966

[80 STAT.

" (D) Upon the sale under this paragraph of any individual dwelling, such dwelling shall be released from the lien of the principal mortgage, and such mortgage shall thereupon be replaced by an individual mortgage insured under this paragraph to the extent of the portion of its unpaid balance which is allocable to the dwelling covered by such individual mortgage. Until all of the individual dwellings in the property covered by the principal mortgage have been sold, the mortgagor shall hold and operate the dwellings remaining unsold at any given time, as though they constituted rental units in a project covered by a mortgage which is insured under subsection (d)(3) (and which receives the benefits of the interest rate provided for in the proviso in subsection (d)(5)). " (E) Upon the sale under this paragraph of all of the individual dwellings in the property covered by the principal mortgage, and the release of all individual dwellings from the lien of the principal mortgage, the insurance of the principal mortgage shall be terminated and no adjusted premium charge shall be charged by the Secretary upon such termination. "(E") Any mortgage insured under this paragraph shall contain a provision that if the low-income mortgagor does not continue to occupy the property the interest rate shall increase to the highest rate permissible under this section and the regulations of the Secretary effective at the time of commitment for insurance of the principal mortgage: except that the increase in interest rate shall not be applicable if the property is sold and the purchaser is (i) the nonprofit organization which executed the principal mortgage, (ii) a public housing agency having jurisdiction under the United States Housing "^^^ ^^ ^^^^ ^^® ^^^^ where the dwelling is located, or (iii) a lowincome purchaser approved for the purposes of this paragraph by the Secretary." (b)(1) Section 221(g)(1) of such Act is amended by inserting after "paragraph (2) of subsection (d) of this section" the following: "or paragraph (5) of subsection (h) of this section". (2) Section 221(g)(2) of such Act is amended by inserting after "paragraph (3) or (4) of subsection (d) of this section" the following: "or paragraph (1) of subsection (h) of this section". (c) Section 221(f) of such Act is amended by inserting after "Housing Act of 1961," in the fourth sentence "or which meet the requirements of subsection (h),". (d) Section 305(h) of such Act is amended by striking out "section 2 2 1 (d)(3) " and inserting in lieu thereof "sections 221(d)(3) and 221(h)". APPLICATION OF DAVIS-BACON ACT TO COOPERATIVE H O U S I N G PROJECTS I N S U R E D UNDER SECTION 2 2 1 (d)(3) AND (d)(4) A N D MORTGAGES I N S U R E D UNDER SECTION 2 2 1 (h)(1)

79^stat^454°^' 12 USC ly'isc.

S E C 311. The third sentence of section 212(a) of the National Housing Act is amended by striking out "subsection (d)(3) or (d)(4)." and inserting in lieu thereof "subsection (d)(3) or (d)(4) and (deeming the term 'construction' as used in the first sentence of this subsection to mean rehabilitation) of any mortgage described in subsection (h)(1) which covers property on which there is located a dwelling or dwellings designed principally for residential use for more than eight families; except that compliance with such provisions may be waived by the Secretary— "(1) with respect to mortgages described in such subsection (d)(3) or (d)(4), in cases or classes of cases where laborers or mechanics (not otherwise employed at any time in the construc-

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