Page:United States Statutes at Large Volume 94 Part 2.djvu/373

 PUBLIC LAW 96-399—OCT. 8, 1980

94 STAT. 1651

"(C) continuance of the property as rental housing would have an undesirable and deleterious effect on the surrounding neighborhood."; and (8) by inserting "(5)" before the sentence beginning "In the case of refinancing of an existing hospital" and redesignating that sentence as paragraph (5). TITLE INSURANCE RELIEF

SEC. 328. Section 203 of the National Housing Act is amended by Indian land claims. adding at the end thereof the following new subsection: 12 USC 1709. "(p)(l) Notwithstanding any other provision of this section or any other section of this title, the Secretary is authorized to insure, and to commit to insure, under subsection (b) of this section as modified by this subsection a mortgage which meets both the requirements of this subsection and such criteria as the Secretary by regulation shall prescribe to further the purpose of this subsection, in any community where the Secretary determines that— "(A) temporary adverse economic conditions exist throughout the community as a direct and primary result of outstanding claims to ownership of land in the community by an American Indian tribe, band, or nation; "(B) such ownership claims are reasonably likely to be settled, by court action or otherwise; and "(C) fifty or more individual homeowners were joined as parties defendant or were members of a defendant class prior to April 1, 1980, in litigation involving claims to ownership of land in the community by an American Indian tribe, band, group, or nation pursuant to a dispute involving the Articles of Confederation, Trade and Intercourse Act of 1790, or any similar State or u s e prec. title 1 Stat. 137. Federal law. "(2) A mortgage shall be eligible for insurance under subsection (b) of this section as modified by this subsection without regard to limitations in this title relating to marketability of title, or any other statutory restriction which the Secretary determines is contrary to the purpose of this subsection, but only if the mortgagor is an owneroccupant of a home in a community specified in paragraph (1). The Secretary, in connection with any mortgage insured under subsection (b) as modified by this subsection, shall have all statutory powers, authority, and responsibilities which the Secretary has with respect to other mortgages insured under subsection (b), except that the Secretary may modify such powers, authority, or responsibilities where the Secretary deems such action to be necessary because of the special nature of the mortgage involved. Notwithstanding section 202 of this title, the insurance of a mortgage under subsection (b) of this 12 USC 1708. section as modified by this subsection shall be the obligation of the Special Risk Insurance Fund created pursuant to section 238 of this title.".

12 USC 1715Z-3.

PARTICIPATION BY LOCAL PERSONS AND FIRMS IN ASSISTED PROJECTS

SEC. 329. Section 3 of the Housing and Urban Development Act of 1968 is amended— (1) by striking out "residing in the area of such project" in paragraph (1) and inserting in lieu thereof "residing within the unit of local government or the metropolitan area (or nonmetropolitan county), as determined by the Secretary, in which the project is located"; and

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12 USC 1701u.

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