Page:United States Statutes at Large Volume 92 Part 3.djvu/596

 92 STAT. 3228

PUBLIC LAW 95-619—NOV. 9, 1978

PART 3—SECONDARY FINANCING AND LOAN INSURANCE FOR ENERGY CONSERVING IMPROVEMENTS AND SOLAR ENERGY SYSTEMS 12 USC 1702. 12 USC 1703. "Energy conserving ^ ^ improvements. 42 USC 6862. "Solar energy ^y^*®™^ "*

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SEC. 241. LOAN INSURANCE FOR ENERGY CONSERVING IMPROVEMENTS AND SOLAR ENERGY SYSTEMS UNDER TITLE I OF THE NATIONAL HOUSING ACT. Subparagraph s (2) and (3) of the last paragraph of section 2(a) of the National Housing Act are amended to read as follows: " (2) the term 'energy conserving improvements' means the purchase and installation of weatherization materials as defined in section 412(9) of the P:^nergy Conservation in Existing Buildings Act of 1976; and " ^ 3 ^ ^}jg term 'solar energy system' means any addition, alteration, or improvement to an existing or new structure which is designed to utilize wind energy or solar energy either of the active t y p e based on mechanically forced energy transfer or of the passive type based on convective, conductive, or radiant energy transfer or some combination of these types to reduce the energy requirements of that structure from other energy sources, and which is in conformity with such criteria and standards as shall be prescribed by the Secretary in consultation with the Secretary of Energy.". SEC. 242. PURCHASE BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION OF LOANS TO LOW- AND MODERATE-INCOME FAMILIES FOR ENERGY CONSERVING IMPROVEMENTS. The Federal National Mortgage Association Charter Act is amended by a d d i n g the following new section at the end thereof: PURCHASE o r ENERGY CONSERVING IMPROVEMENT LOANS TO LOW- AND MODERATE-INCOME FAMILIES

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12 USC 1723f.

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12 USC 1702.

'"SEC. 314. (a) As soon as practicable after the date of enactment of this section, the Secretary shall direct the Association to begin making commitments to purchase, and to purchase, loans and advances of credits (and related purchase certificates and other related instruments) in accordance with this section. " (b) I n accordance with the directive issued by the Secretary under subsection (a), the Association shall make commitments to purchase and purchase, and may service, sell (with or without recourse), or otherwise deal in, loans and advances of credit (and related purchase certificates and other related instruments) which are insured under title I of the National Housing Act and which are made to low- and moderate-income families for the purpose of purchasing and installing energy conserving improvements in one- to four-family dwelling units owned by such families. A loan or advance of credit may be purchased under this section only if— " (1) the term of repayment does not exceed 15 years and is not less than 5 years, except that there shall be no penalty imposed if the borrower repays such loan or advance of credit at any time before the term of repayment expires; " (2) such loan or advance of credit involves an interest rate which the Secretary (after consulting with the Secretary of Agriculture and the Secretary of Energy and after taking into account the probable scope of the program at such rate and the impact a program at such rate may have on credit markets, the Federal budget, and on inflation) establishes, for the purpose of encourag-

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