Page:United States Statutes at Large Volume 82.djvu/542

 500

PUBLIC LAW 90-448-AUG. 1, 1968

[82 STAT.

he may deem necessary or desirable to carry out the provisions of this section. Appropriation. " (i)(1) Thcrc are authorized to be appropriated such sums as may be necessary to carry out the provisions of this section, includinjr such sums as may be necessary to make interest reduction payments under contracts entered into under this section. The a<rgregate amount of contracts to make such payments shall not exceed amounts approved in appropriation Acts, and payments pursuant to such contracts shall not exceed $75,000,000 per annum prior to July 1, 1969, which maximum dollar amount shall be increased by $100,000,000 on July 1, 1969, and by $125,000,000 on July 1, 1970. "(2) Not more than 20 per centum of the total amount of interest reduction payments authorized to be contracted to be made pursuant to appropriation Acts shall he contracted to be made with respect to families, occupying rental housing projects assisted under this section, whose incomes at the time of the initial renting of the projects exceed 1J')5 per centum of the maximum income limits which can be established in the area, pursuant to the limitations prescribed in sections g379^stat^^457; .2(2) aud 15(7)(b) (ii) of the United States Housing Act of 1987, for 42 USC 1402, initial occupancy in public housing dwellings, but the income of such 1415. families at the time of the initial renting of the projects shall in no case exceed 90 per centum of the limits prescribed by the Secretary for (x^cupants of projects financed with mortgages insured under sec75 Stat. 150, tion 221(d)(3) which bear interest at the below-market interest nite ^^^2 u^sc'1715'r prescribed in the proviso of section 221(d)(5). The limitations prescribed in this paragraph shall be administered by the Secretary so as to accord a preference to those families whose incomes are within the lowest practicable limits for obtaining rental accommodations in T^s^°''^ai ""^ pi"ojects assisted under this section. The Secretary shall report annually raurees"^ '^°" to the respective Committees on Banking and Currency of the Senate and House of Representatives with I'espex't to the income levels of families living in pn)jects assisted under this section. "(j)(1) The Secretary is authorized, upon applicaticm by the mortgagee, to insure a mortgage (including advances on such mortgage during construction) which meets the requirements of this subsection. Commitments for the insurance of such mortgages may he issued by the Secretary prior to the date of their execution or disbursment thereon, upon such tenns and conditions as he may prescribe. Definitions. i4(2) As used lu this subsection— ' ' (A) the terms 'family' and 'families' shall have the same 68 Stat 599. meaning as in section 221; " (B) the term 'elderly or handicapped families' shall have the 73 Stat. 667. same meaning as in section 202 of the Housing Act of 1959: and 12 USC* 1 7 m a

12 Stat. 1247. 48 USC 1707.

1

" (C) the terms 'mortgage', 'mortgagee', and 'mortgagor shall have the same meaning as in section 201. "(3) To be eligible for insurance under this subsection, a mortgage shall meet the requirements specified in subsections (d)(1) and (d)(o) of section 221, except as such requirements are modified by this subsection. In the case of a project financed with a mortgage insured under this subsection which involves a mortgagor other than a cooperative or a private nonprofit corporation or association and which is sold to a cooperative or a nonprofit corporation or association, the Secretary is further authorized to insure under this subsection a mortgage given by such purchaser in an amount not exceeding the appraised value of the property at the time of purchase, which value shall be based upon a mortgage amount on which the debt service can be met from the income of the property when operated on a nonprofit basis, aft«r payment of all operating expenses, taxes, and required reserves. "(4) A mortgage to be insured under this subsection shall—

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