Page:United States Statutes at Large Volume 92 Part 2.djvu/800

 PUBLIC LAW 95-557—OCT. 31, 1978

92 STAT. 2080

Public Law 95-557 95th Congress An Act Oct. 3 1. 1978 [S. 3084]

Housing and Community Development Amendments of 1978. 42 USC 5301 note.

To amend and extend certain Federal laws relating to housing, community, and neigliborhood development and preservation, and related programs, and for other purposes.

Be it enacted by the Senate and Hmjise of Representatives of the United States of America in Congress assembled, SHORT

TITLE

1. This Act may be cited as the "Housing and Community Development Amendments of 1978". SECTION

TITLE I—COMMUNITY AND NEIGHBORHOOD DEVELOPMENT AND CONSERVATION REHABILITATION LOANS AND LOAN

42 USC 1452b.

Interest rate.

INSURANCE

SEC. 101. (a) Section 312 of the Housing Act of 1964 is amended— (1) by striking out the undesignated paragraph which follows subsection (a)(3) and inserting in lieu thereof the following new undesignated paragraph: "The Secretary shall, in making loans under this section, give priority to applications by low- and moderate-income persons who own the property to be rehabilitated and will occupy such property upon completion of the rehabilitation, including applications by condominiums and cooperatives in which the residents are principally of low and moderate income. For the purpose of the preceding sentence, the term 'low and moderate income' means income which does not exceed 95 per centum of the median income for the area."; (2) by striking out subsection (c)(3) and inserting in lieu thereof the following: " (3) The loan shall bear interest at such rate as the Secretary determines to be appropriate, but not to exceed 3 per centum per annum for loans to families with adjusted incomes of not more than 80 per centum of the median income for the area. For loans to families with adjusted incomes above 80 per centum of the median income for the area, as determined by the Secretary, the Secretary may establish interest rates based on adjusted family income, ranging from above 3 per centum to a rate determined by the Secretary, but in no case may any such rate exceed the current average market yield on outstanding marketable securities of the United States with remaining periods to maturity comparable to the terms of loans made pursuant to this section, adjusted to the nearest one-eighth of 1 per centum. The Secretary may prescribe such other charges adequate in the judgment of the Secretary to cover administrative costs and possible losses under the program."; (3) by inserting the following before the semicolon at the end of subsection (c)(4)(A): ", or if such refinancing is deemed necessary by the Secretary to minimize displacement of existing tenants of a multif amily property";

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