Page:United States Statutes at Large Volume 91.djvu/1167

 PUBLIC LAW 95-128—OCT. 12, 1977

91 STAT. 1133

which, when added to any other mortgages insured under this section in that subdivision after such date, represents more than 40 per centum of the total number of units in the subdivision, except that the preceding limitation shall not apply with regard to any rehabilitated unit, or to any unit or subdivision located or to be located in an established urban neighborhood or area, where a sound proposal is involved and where an aggregation of subsidized units is essential to a community sponsored overall redevelopment plan, as determined by the • Secretary.". (g) Section 203(i) of such Act is amended by striking out "$16,200" 12 USC 1709. and inserting in lieu thereof "75 per centum of the limit on the principal obligation applicable to a one-family residence under subsection (b) of this section". DECREASE IN" DOWNPAYMENT REQUIREMENTS

SEC. 304. (a) Section 203(b)(2) of the National Housing Act is amended— (1) by striking out, in clause (i) of the first sentence, all the parenthetical language which begins "(but, in any case"; (2) by striking out clauses (ii) and (iii) in the first and second sentences and inserting in lieu thereof in each sentence "and (ii) 95 per centum of such value in excess of $25,000."; and (3) by inserting immediately after the second sentence the following: "Notwithstanding any other provision of this section, in any case where the dwelling is not approved for mortgage insurance prior to the beginning of construction, such mortgage shall not exceed 90 per centum of the entire appraised value of the property as of the date the mortgage is accepted for insurance, unless the dwelling was completed more than one year prior to the application for mortgage insurance, or the dwelling was approved for guaranty, insurance, or a direct loan under chapter 37 of title 38, United States Code, prior to the beginning of construction.". (b) Section 220(d)(3)(A)(i) of such Act is amended— (1) by striking out the comma at the end of clause (1) and all of clauses (2) and (3) in the matter preceding the first proviso and inserting in lieu thereof "and (2) 95 per centum of such value in excess of $25,000"; and (2) by striking out in the second proviso the comma at the end of clause (1) and all of clauses (2) and (3) and inserting in lieu thereof "and (2) 95 per centum of such value in excess of $25,000". (c) Section 222(b)(3) of such Act is amended by striking out clauses (ii) and (iii) and inserting in lieu thereof "and (ii) 95 per centum of such value in excess of $25,000;". (d) The third sentence of section 234(c) of such Act is amended by striking out clauses (A) (ii) and (A) (iii) and insertina: in lieu thereof "and (ii) 95 per centum of such value in excess of $25,000,".

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^ 38 USC 1801 et se?12 USC 1715k.

12 USC 1715m. 12 USC 1715y.

AUTHORITY TO INCREASE MORTGAGE INSURANCE P R E M I U M FOR SECTION 2 0 3 (U)

SEC. 305. Section 203(c) of the National Housing Act is amended 12 USC 1709. by inserting the following before the colon preceding the first proviso: Provided, That premium charges fixed for insurance under subsection (n) is not required to be the same as the premium charges for mortgages insured under the other provisions of this section, but in

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