Page:United States Statutes at Large Volume 91.djvu/1173

 PUBLIC LAW 95-128—OCT. 12, 1977 (c) Section 517(a)(1) of such Act is amended by striking out "September 30, 1977" and inserting in lieu thereof "September 30, 1978". (d) Section 523(f) of such Act is amended— (1) by striking out "October 1, 1977" and inserting in lieu thereof "October 1, 1978"; and (2) by striking out "September 30, 1977" and inserting in lieu thereof "September 30, 1978".

91 STAT. 1139 42 USC 1487.

42 USC 1490c.

CHANGES I N THE GUARANTEED HOUSING LOAN PROGRAM

SEC. 502. (a) Section 502(b)(3) of the Housing Act of 1949 is 42 USC 1472,, amended by inserting "except for guaranteed loans," after "(3)". (b) Section 517(e) of such Act is amended by inserting after the Rural Housing; first sentence the following new sentence: "The guaranteed loan pro- Insurance Fund. gram under this title shall be operated separately from the insured 42 USC 1487. k)an program operated under this title and no funds designated for Transfer of funds. one program may be transferred to another program.". (c) Section 517 of such Act is amended by adding the following new subsection at the end thereof: "(n) Loans guaranteed under this section shall be made only to borrowers with above-moderate incomes.". (d) Section 521(a)(1) of such Act is amended by adding at the end Interest rates. thereof the following: "Any loan guaranteed under this title shall 42 USC 1490a. bear interest at such rate as may be agreed upon by the borrower and the lender.". PREPAYMENT OF TAXES AND SIMILAR ITEMS BY FARMERS H O M E ADMINISTRATION BORROWERS

SEC. 503. Section 501(e) of the Housing Act of 1949 is amended 42 USC 1471. by striking out the second sentence and inserting in lieu thereof the following: "Such payments shall be disbursed by the Secretary at the appropriate time or times for the purposes for which such payments are made, and after October 1, 1977, if the prepayments made by the borrower are not sufficient to pay the amount due, advances may be made by the Secretary to pay these costs in full, which advances shall be charged to the account of the borrower and bear interest and be payable in a timely fashion not to exceed two years, as determined by the Secretary.". COMPENSATION FOR CONSTRUCTION DEFECTS

SEC. 504. Section 509 of the Housing Act of 1949 is amended by 42 USC 1479. adding at the end thereof the following new subsections: "(c) The Secretary is authorized, after October 1, 1977, with respect to any unit or dwelling newly constructed during the period beginning eighteen months prior to the date of enactment of the Housing and Community Development Act of 1977 and purchased with financial assistance authorized by this title which he finds to have structural defects to make expenditures for (1) correcting such defects, (2) paying the claims of the owner of the property arising from such defects, or (3) acquiring title to the property, if such assistance is requested by the owner of the property within eighteen months after financial assistance under this title is rendered to the owner of the property or, in the case of property with respect to which assistance was made available within eighteen months prior to the date of enactment of the Housing and Community Develop-

�