Page:United States Statutes at Large Volume 82.djvu/524

 482

Definitions.

PUBLIC LAW 90-448-AUG. 1, 1968

[82 STAT.

and quality as to give reasonable promise that a stable enviroiinieut will be created in the neighborhood. "(4)(A) No mortgage shall be insured under paragraph (1) unless the mortgagor enters into an agreement, satisfactory to the Secretary, that it will oft'er to sell the dwellings involved, after purchase and upon completion of any rehabilitation, to lower income individuals or families meeting the eligibility requirements established by the Secretary under sul)section (b). " (B) The Secretary is authorized to insure under this paragraph moi"tgages executed to tinance the sale of individual dwellings to lower income purchasers as provided in subparagraph (A). Any such mortgage shall— "(i) be in a principal amount not in excess of that ix>rtion of the unpaid principal balance of the blanket mortgage covering the property which is allocable to the individual dwelling involved; •'(ii) bear interest at the same rate as the blanket mortgage; and "(iii) provide for complete amortization by periodic ]>ayments within a term equal to the remaining term (determinecl without regard to subparagraph (E)) of such blanket mortgage. ' ' (C) The price for which any individual dwelling is sold under this paragraph shall be in an amount eqvuil to that portion of the unpaid principal balance of the blanket mortgage covering the property which is allocable to the dwelling plus such additional amount, not less than $200 (which may be applied in whole or in part toward closing costs and may be paid in cash or its equivalent), as the Secretary may determine to be reasonable. "'(D) Upon the sale under this paragraph of any individual dwelling, such dwelling shall be released from the lien of the blanket mortgage. I'ntil all of the individual dwellings in the property covered by the blanket mortgage have been sold, the mortgagor shall hold and operate the dwellings remaining unsold at any given time, in such manner and under such terms as the Secretary may prescribe, as though they constituted rental units. '"(E) Upon the sale under this paragraph of all the individual dwellings in the property covered by the blanket mortgage and the release of all individual dwellings from the lien of the blanket mortgage, the insurance of the blanket mortgage shall be terminated and no adjusted premium charge shall be charged by the Secretary upon such termination. "(5) Where the Secretary has approved a plan of family unit ownership the terms 'single-family dwelling-, 'single-family dwellings', 'individual dwelling', and 'individual dwellings" shall mean a family unit or family units, together with the undivided interest (or interests) in the common areas and facilities. "(6) For purposes of this subsection, the terms 'single-family dwelling' and 'single-family dwellings' (except for purposes of paragraph (5)) shall include a two-family dwelling which has been approved by the Secretary if one of the units is to be occupied by the owner. "(7) I n addition to the assistance payments authorized under subsection (b), the Secretary may make such payments to a mortgagee on behalf of a nonprofit organization or public body or agency which is a mortgagor under the provisions of paragraph (1) in an amount not exceeding the difference between 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

�