Page:United States Statutes at Large Volume 82.djvu/541

 82 STAT. ]

PUBLIC LAW 90-448-AUG. 1, 1968

499

rental housing project designed for occupancy by lower income families, which shall be accomplished through payments to morgagees holding mortgages meeting the sj^ecial requirements specified in this section. " (b) Interest reduction payments with respect to a project shall only be made during such time as the project is operated as a rental housing project and is subject to a mortgage which meets the mjuirements of,,„^ and is insured under, subsection (j) of this section-Provided, That interest reduction payments may be made with respect to a rental or cooperative housing project owned by a private nonprofit corporation"^ -2  4, • completion of construction or rehabilitation is approved for receiving the benefits of this section?^ "(c) The interest reducfion payments to a mortgagee by the Secretary on behalf of a project owner shall be in an amount not exceeding the difference between the monthly payment for principal, interest, and mortgage insurance premium which the project owner as a mortgagor is obligated to pay under the mortgage and the monthly payment for principal and interest such project owner would be obligated to pay if the mortgage were to bear interest at the rate of 1 per centum per annum. " (d) The Secretary may include in the payment to the mortgagee Mortgage such amount, in addition to the amount computed under subsection ^" ^"^ expenses. .(c), as he deems appropriate to reimburse the mortgagee for its expenses in handling the mortgage. "(e) As a condition for receiving the benefits of interest reduction payments, the project owner shall operate the project in accordance with such requirements with respect to tenant eligibility and rents as the Secretary may prescribe. Procedures shall be adopted by the Secretary for review of tenant incomes at intervals of two years (or at shorter intervals where the Secretary deems it desirable). "(f) For each dwelling unit there shall be established with the approval of the Secretary (1) a basic rental charge determined on the basis of operating the project with payments of principal and interest due under a mortgage bearing interest at the rate of 1 per centum per annum; and (2) a fair market rental charge determined on the basis of operating the project with payments of principal, interest, and mortgage insurance premium which the mortgagor is obligated to pay under the mortgage covering the project. The rental for each dwelling unit shall be at the basic rental charge or such greater amount, not exceeding the fair market rental charge, as represents 25 per centum of the tenant's income. " (g) The project owner shall, as required by the Secretary, ac- char^s^^coUec^cumulate, safeguard, and periodically pay to the Secretary all rental tion and deposit, charges collected in excess of the basic rental charges. Such excess charges shall be deposited by the Secretary in a fund which may be used by him as a revolving fund for the purpose of making interest reduction payments with respect to any rental housing project receiving assistance under this section, subject to limits approved in appropriation Acts pursuant to subsection (i). Moneys in such fund not investment of needed for current operations may be invested in bonds or other obligations of the United States or in bonds or other obligations guaranteed as to principal and interest by the United States. " (h) In addition to establishing the requirements specified in subsection (e), the Secretary is authorized to make such rules and regulations, to enter into such agreements, and to adopt such procedures as

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