Page:United States Statutes at Large Volume 80 Part 1.djvu/1321

 80 STAT. ]

PUBLIC LAW 89-754-NOV. 3, 1966

1285

minimum and maximum standards for such housing and related facilities (not to exceed an average of $7,500 per dwelling unit); (2) to the extent feasible, encourage the proposed users of such housing and related facilities to utilize mutual and self-help in the construction thereof; and (3) provide experience, and encourage continued participation, in self-government and individual home ownership. (b) Grants under this section shall not exceed 75 per centum of the aggregate cost of the housing and related facilities to be constructed under an approved program. (c) There is authorized to be appropriated not to exceed $10,000,000 to carry out the purposes of this section. FEDERAL N A T I O N A L MORTGAGE ASSOCIATION PARTICIPATION I N FEDERAL H O U S I N G ADMINISTRATION - I N S U R E D CONSTRUCTION F I N A N C I N G

SEC. 1005. Section 305 of the National Housing Act is amended by adding at the end thereof the following new subsection: " (i) I n any case where the Association makes a commitment to purchase under this section (1) a mortgage insured under section 213, (2) a mortgage insured under section 220, or (3) a mortgage insured under section 221(d)(3) and executed by a cooperative (including an investor-sponsor), a limited dividend corporation, a private non-profit corporation or association, or a mortgagor qualified under section 221(e), such commitment may provide for participation by the Association in the making of insured advances on the mortgage during construction. Such participation shall be limited to 95 per centum of the amount of each of the advances involved, and the mortgagee providing the balance of such amount shall perform all necessary servicing and processing of such advances until the final insurance endorsement of the mortgage. The Secretary of Housing and Urban Development shall approve the reasonableness of the fee to be paid a participating mortgagee, taking into account its services and the extent of its participation in the advances."

^^ Stat. eie. 12 USC 1715e, 1715k. niSl.

FEDERAL N A T I O N A L MORTGAGE ASSOCIATION SPECIAL ASSISTANCE FOR F I N A N C I N G LOW-COST H O M E S

SEC. 1006. The Congress hereby finds that the sharp decline in new home construction over the past year threatens to undercut our present high level of prosperity and employment as such declines have in the past; that the substantial reduction which has taken place has had its greatest impact on families of modest income who are seeking to achieve the goal of homeownership; that this decline in homebuilding is due primarily to the shortage of mortgage financing on terms which moderate income families can afford; and that our national policy objectives in the field of housing and community development are thereby being thwarted. The Congress therefore expresses its intent that the special assistance funds made available to the Federal National Mortgage Association for the financing of new low-cost homes by the Act of September 10, 1966 (Public Law 89-556), should be released immediately to halt the continuing decline in the construction of new homes for families of moderate income.

Ante,

p. 738.

FEDERAL N A T I O N A L MORTGAGE ASSOCIATION STANDBY C O M M I T M E N T S

SEC. 1007. Section 304(a)(1) of the National Housing Act is amended by striking out the last sentence.

75 Stat. 176. 12 USC 1719.

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