Page:United States Statutes at Large Volume 82.djvu/520

 478

PUBLIC LAW 90-448-AUG. 1, 1968

[82 STAT.

I be accomplished through payments to moitgagees holding mortgages meeting the special requirements specified in this section. " (b) To qualify for assistance payments, the homeowner or the cooperative member shall be of lower income and satisfy eligibility requirements prescribed by the Secretary, and— "(1) the homeowner shall be a mortgagor under a mortgage which meets the requirements of and is insured under subsection (i) or (j)(4) of this section: Provided, That a mortgage meeting the requirements of subsection (i)(3)(A) of this section but Post, p. 485. insured under section 237 may qualify for assistance payments if such mortgage was executed by a mortgagor who is determined not to be an acceptable credit risk for mortgage insurance purposes (but otherwise eligible) under subsection (j)(4) of this Ts^star^e^o^^' section or under section 221(d)(2) or 234(c) and accepted as a 12 USC 1715^, reasonably satisfactory credit risk under section 237; or ^7i5y. "(2) the cooperative association of which the family is a member shall operate a housing project the construction or substantial rehabilitation of which has been financed with a mortgage insured 12 u^c nise. under section 213 and which has been completed within two years prior to the filing of the application for assistance payments and the dwelling unit has had no previous occupant other than the ,/ I f'^imi\y[]Provided, That if the initial cooperative member receiv(y^^'^' I ing assistance payments transfers his membership and occupancy •' I A \ I rights to another person who satisfies the eligibility requirements ,.. \ ^ ^ \ prescribed by the Secretary, such new cooperative member may \ I qualify for assistance payments upon the filing of an application L with respect to the dwelling unit involved to be occupied by himT] Provided further. That assistance payments may be made witlii respect to a dwelling unit in an existing cooperative project which meets such standards as the Secretary may prescribe, if the family qualifies as a displaced family as defined in section 80^8131^*13^1^7^' ^21 (f), or a family which includes five or more minor persons, or a family occupying low-rent public housing: Provided further. That the amount of the mortgage attributable to the dwelling unit shall involve a principal obligation not in excess of $15,000 ($17,500 in any geographical area where the Secretary authorizes an increase on the basis of a finding that cost levels so require), except that with respect to any family with five or more persons the foregoing limits shall be $17,500 and $20,000, respectively. "(c) The assistance payments to a mortgagee by the Secretary on behalf of a mortgagor shall be made during such time as the mortgagor shall continue to occupy the property which secures the mortgage: Provided, That assistance payments may be made on behalf of a homeowner who assumes a mortgage insured under subsection (j)(4) with respect to which assistance payments have been made on behalf of the previous owner, if the homeowner is approved by the Secretary as eligible for receiving such assistance. The payment shall be in an amount not exceeding the lesser of— "(1) the balance of the monthly payment for principal, interest, taxes, insurance, and mortgage insurance premium due under the mortgage remaining unpaid after applying 20 per centum of the mortgagor's income; or "(2) the difference between the amount of the monthly payment for principal, interest, and mortgage insurance premium which the mortgagor is obligated to pay under the mortgage and the monthly payment for principal and interest which the mortgagor would be obligated to pay if the mortgage were to bear interest at the rate of 1 per centum per annum.

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