Page:United States Statutes at Large Volume 82.djvu/525

 82 STAT. ] •

PUBLIC LAW 90-448-AUG. 1, 1968

principal and interest such mortgagor would be obligated to pay if the mortgage were to bear interest at the rate of 1 per centum per annum. "(8) A mortgage covering property which is not deteriorating or substandard may be insured under this subsection only if it is situated in an area in which mortgages may be insured under section 221(h). '"(k) The Secretary shall from time to time allocate and transfer to the Secretary of Agriculture, for use (in accordance with the terms and conditions of this section) in rural areas and small towns, a reasonable portion of the total authority to contract to make assistance payments as approved in appropriation Acts under subsection (h)(1). "(l) In determining the income of any person for the purposes of this section, there shall be deducted an amount equal to $800 for each minor person who is a member of the immediate family of such person and living with such family, and the earnings of any such minor person shall not be included in the income of such person or his family." (b)(1) Section 2 2 1 (d)(2)(A) of the National Housing Act is 1 1

amended— ... (A) by striking out "not to exceed (i) $12,500" and inserting in lieu thereof "not to exceed (i) $15,000 (or $17,500, if the mortgagor's family includes five or more persons)"'; and (B) by striking out "not to exceed $15,0(M)" in the second proviso and inserting in lieu thereof "not to exceed $17,500 (or $20,000 if the mortgagor's family includes five or more persons)". (2) Section 221(d)(2)(B) of such Act is amended— (A) by inserting ", in cash or its equivalent" before the semicolon after "acquisition cost" in the first proviso; and (B) by inserting before the semicolon after "appraised value" at the end thereof the following: ": Provided further, That, if the mortgagor is the owner and an occupant of the property, such mortgagor shall to the maximum extent feasible be given the opportunity to contribute the value of his labor as equity in such dwelling". (c)(1) Section 221(h)(5)(B) (ii) of such Act is amended to read as follows: "(ii) bear interest at the same rate as the principal mortgage or such lower rate, not less than 1 per centum, as the Secretary may prescribe if in his judgment the purchaser's income is sufficiently low to justify the lower rate, and provide for complete amortization within a term equal to the remaining term (determined without regard to subparagra})!! (E)) of such principal mortgage: Provided, That, if the rate of interest mitially prescribed is less than the rate borne by the principal mortgage and the purchaser's income (as determined on the basis of periodic review) subsequently rises, the rate of interest so prescribed shall be increased (but not above the rate borne by such principal mortgage), under regulations of the Secretary, to the extent appropriate to reflect the increase in such income, and the mortgage shall so provide." "(2) Section 221(h)(4) of such Act is amended by striking out "$20,000,000" and inserting in lieu thereof "$50,000,000". (3) Section 221(h) of such Act is further amended by adding at the end thereof the following new paragraph: " (6) I n addition to the mortgages that may be insured under paragraphs (1) and (5), the Secretary is authorized to insure under this subsection at any time within one year after the date of the enactment of this paragraph, upon such terms and conditions as he may prescribe,

483

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75 Stat. i49; 80 Stat. 1268.

12 USC 1715^.

8° ^tat. 1269.

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