Page:United States Statutes at Large Volume 85.djvu/200

 170

PUBLIC LAW 92-65-AUG. 5, 1971

[85 STAT.

40 u'sc app.* 207.

(b) Subseotions (a), (b), and (c) of such section are amended to read as follows: " (a) I n order to encourage and facilitate the construction or rehabilitation of housing to meet the needs of low- and moderate-income families and individuals, the Secretary of Housing and Urban Development (hereafter in this section referred to as the 'Secretary') is authorized to make grants and loans from the Appalachian Housing Fund established by this section, under such terms and conditions as he may prescribe, to nonprofit, limited dividend, or cooperative organizations, or public bodies, for planning and obtaining federally insured mortgage financing for housing construction or rehabilitation projects for low- and moderate-income families and individuals, under 8 2^stau477^498. seotion 221, 235, or 236 of the National Housing Act, in any area of 12 USC 17*15 z,' the Appalachian region determined by the Commission. 1715Z, 1715Z-1. " (b) ^Q loan under subsection (a) of this section shall exceed 80 per centum of the cost of planning and obtaining financing for a project, including, but not limited to, preliminary surveys and analyses of market needs, preliminary site engineering and architectural fees, site options, application and mortgage commitment fees, legal fees, and construction loan fees and discounts. Such loans shall be made without interest, except that any loan made to an organization established for profit shall bear interest at the prevailing market rate authorized for an insured or guaranteed loan for such project. The Secretary shall require payments of loans made under this section, under such terms and conditions as he may require, upon completion of the project or sooner, and except in the case of a loan to an organization established for profit, may cancel any part, or all of such a loan, if he determines that a permanent loan to finance such project cannot be obtained in an amount adequate for repayment of such loan under this section. "(c)(1) Except as provided in paragraph (2) of this subsection, no grant under this section shall exceed 80 per centum of those expenses, incident to planning and obtaining financing for a project, which the Secretary considers not to be recoverable from the proceeds of any permanent loan made to finance such project, and no such grant shall be made to an organization established for profit. "(2) The Secretary is authorized to make grants and commitments for grants, and may advance funds under such terms and conditions as he may require, to nonprofit organizations and public bodies for reasonable site development costs and necessary offsite improvements, such as sewer and water line extensions, whenever such a grant, commitment, or advance is essential to the economic feasibility of any housing construction or rehabilitation project for low- and moderateincome families and individuals which otherwise meets the requirements for assistance under this section, except that no such grant shall exceed 10 per centum of the cost of such project." 83 Stat. 215. (^) Subsection (e) of such section is amended by striking out "The Secretary is further authorized to " and inserting in lieu thereof "The Secretary or the Commission may". SEC. 209. (a) The catchline for section 211 of the Appalachian 79 Stat. 16. Regional Development Act of 1965 (40 App. U.S.C. 211) is amended by adding at the end "AND VOCATIONAL AND TECHNICAL EDUCATION 81 Stat. 262.

DEMONSTRATION

PROJECTS".

(b) The first sentence of subsection (a) of such section is amended by inserting "and operation" after "equipment". (c) Subsection (b) of such section is amended to read as follows:

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