Page:United States Statutes at Large Volume 82.djvu/646

 604

PUBLIC LAW 90-448-AUG. 1, 1968

[82 STAT.

1-^ 64 Stat. 77. 12 USC 1749. 69 Stat. 644.

73 Stat. 681.

69 Stat. 645.

64 Stat. 80; 75 Stat. 173. 12 USC 1749b.

COLLEGE HOUSING

r

SEC. 1705. (a) The heading of section 401 of the Housing Act of 1950 i.s amended by striking out "LOANS" and inserting in lieu thereof "ASSISTANCE IN THE FORM OF LOANS OR ANNUAL GRANTS''.

(b) Section 401(a) of such Act is amended to read as follows: " (a) To assist educational institutions in providing housing and other educational facilities for students and faculties, the Secretary may make loans of funds to such institutions for the construction or purchase of such facilities or may, as an alternative to all or part of the loan (in the case of any such institution), make annual grants to the institution to reduce the cost of its borrowing from other sources for such construction or purchase: Provided, That no such assistance shall be provided unless (1) the educational institution involved is unable to secure the necessary funds for the construction or purchase from other sources upon terms and conditions equally as favorable as the terms and conditions applicable to loans under this title, and (2) the Secretary finds that any such construction will be undertaken in an economical manner, and that any such facilities are not or will not be of elaborate or extravagant design or materials." (c) Section 401(c) of such Act i,s amended— (1) by inserting " (1) " after " (c) "; (2) by striking out "of (1) " and "or (2) " and inserting in lieu thereof "of (A) " and "or (B) ", respectively; and (3) by adding at the end thereof the following new paragraph: "(2) Annual grants to an educational institution with respect to any housing or other educational facilities shall be made over a fixed period not exceeding 40 years, and provision for such grants shall be embodied in a contract guaranteeing their payment over such period. Each such grant shall be in an amount equal to the difference between (A) the average annual debt service which would be required to be paid, during the life of the loan, on the amount borrowed from other sources for the construction or purchase of such facilities, and (B) the average annual debt service which the institution would have been required to pay, during the life of the loan, with respect to such amount if the applicable interest rate were the rate specified in paragraph (1): Provided, That the amount on which such grant is based shall be approved by the Secretary but in no event shall exceed the total development cost of the facilities." (d) Section 401(d) of such Act is amended by inserting " (1) " after " (d) ", and by adding at the end thereof the following new paragraph: "(2) There are hereby authorized to be appropriated to the Secretary such sums as may be necessary, together with loan principal and interest payments made by educational institutions assisted with leans made hereunder, for payments on notes or other obligations issued by the Secretary under this section." (e) Section 401(f) of such Act is amended to read as follows: " (f)(1) There are hereby authorized to be appropriated to the Secretary such sums as may be necessary for the payment of annual grants to educational institutions in accordance with this section. "(2) Contracts for annual grants under this section shall not be entered into in an aggregate amount greater than is authorized in appropriation Acts; and in any event the total amount of annual grants which may be paid to educational institutions in any year pursuant to contracts entered into under this section shall not e x c e ^ $10,000,000, which amount shall be increased by $10,000,000 on July 1, 1969." (f) Section 403 of such Act is amended by striking out "the funds provided for in this title in the form of loans" and inserting in lieu thereof "the amount of the funds provided for in this title in the form

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