Page:United States Statutes at Large Volume 94 Part 2.djvu/353

 PUBLIC LAW 96-399—OCT. 8, 1980

94 STAT. 1631

equal to at least 50 per centum of the net appreciation of the property, as determined by the Secretary. For the purpose of this paragraph, the term 'net appreciation of the property' means any increase in the value of the property over the original purchase price, less the reasonable costs of sale, the reasonable costs of improvements made to the property, and any increase in the mortgage amount as of the time of sale over the original mortgage balance due to the mortgage being insured pursuant to section 245. Notwithstanding any other provision of law, any such assistance shall constitute a debt secured by the property to the extent that the Secretary may provide for such recapture. "(B) Subparagraph (A) does not apply to any property with respect to which there is assumption in accordance with paragraph (1) of this subsection or to any property which is subject to a mortgage, loan, or other advance of credit insured pursuant to subsection (q).". (2) The amendment made by paragraph (1) does not apply to any assistance contract under section 235 of the National Housing Act entered into pursuant to a commitment issued within 6 months following the date of enactment of this Act. (c)(1) The Secretary of Housing and Urban Development shall conduct a study of the effects which the application of subsection (n) of section 235 of the National Housing Act has had or is likely to have on the program established by subsection (a) of such section. If the program established by subsection (q) of such section is implemented, the Secretary shall include in the study an analysis of the effects on the subsection (q) program of the application of subsection (n) to such program. (2) The Secretary shall transmit to the Congress, not later than January 1, 1982, a report containing the findings and conclusions of the study described in paragraph (1).

"Net appreciation of the property."

12 USC 1715Z-10.

12 USC 1715z note. 12 USC 1715z. Study. 12 USC 1715z note.

Report to Congress.

SECTION 235(q) PROGRAM

SEC. 207. Section 235 of the National Housing Act is amended by 12 USC I7i5z. adding at the end thereof the following: "(q)(l) Notwithstanding any other provision of this section, except contracts. subsection (n), if the Secretary determines that there is a substantial need for emergency stimulation of the housing market, the Secretary is authorized to make and enter into contracts to make periodic assistance payments, to the extent of not to exceed 75 per centum of the authority available pursuant to subsection (h)(1), on behalf of homeowners, including owners of manufactured homes, to mortgagees or other lenders holding mortgages, loans, or advances of credit which meet the requirements of this subsection. The Secretary may establish such criteria, terms, and conditions relating to homeowners and mortgages, loans, or advances of credit assisted under this subsection as the Secretary deems appropriate, consistent with the provisions of this subsection. The Secretary is authorized to insure a mortgage which meets the requirements of and is to be assisted under this subsection. The authority to enter into contracts to provide assistance payments and to insure mortgages under this subsection shall terminate on June 1, 1981, or at such earlier date as the Secretary may deem appropriate, upon a determination by the Secretary that the conditions which gave rise to the exercise of authority under this subsection are no longer present, except pursuant to a commitment entered into prior to such date.

79-194

O—81—pt. 2

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