Page:United States Statutes at Large Volume 82.djvu/532

This page needs to be proofread.
[82 STAT. 490]
[82 STAT. 490]
PUBLIC LAW 90-000—MMMM. DD, 1968

490 Cooperative Turlncf*^' "

68 Stat. 599.^

PUBLIC LAW 90-448-AUG. 1, 1968

"(2) The Secretary is authorized, upon application by the mortg^g66, to insure under this subsection cooperative mortgages financing the purchase of projects meeting the requirements of paragraph (1). Commitments may be issued by the Secretary for the insurance of such mortgages prior to the date of their execution or disbursement thereon, upon such terms and conditions as the Secretary may prescribe. To be eligible for such insurance, the mortgage shall— "(i) involve a principal obligation (including such initial service charges and appraisal, inspection, and other fees as the Secretary shall approve) in an amount not exceeding the appraised value of the property for continued use as a cooperative, which value shall be based uix>n a mortgage amount on which the debt service can be met from the income of the property when operated on a nonprofit basis, after the payment of all operating expenses, taxes, and required reserves; '*(ii) bear interest at the below-market rate prescribed in the proviso of subsection (d)(5); and "(iii) provide for complete amortization within such term as the Secretary may prescribe." ^b) Section 221(g)(1) of such Act is amended by striking out "or paragraph (5) of subsection (h) of this section" and inserting in lieu thereof "paragraph (5) of subsection (h) of this section, or paragraph (2) of subsection (i) of this section". (c) Section 221(g)(2) of such Act is amended by striking out "or paragraph (1) of subsection (h) " and inserting in lieu thereof "paragraph (1) of subsection (h) of this section, or paragraph (2) of subsection (j).". (d) Section 221(f) of such Act is amended by inserting after "subsection (h) " in the third sentence of the second paragraph the following: ", (i), or (j) ". ASSISTANCE

Loans.

[82 STAT.

TO N O N P R OF I T

SPONSORS O F LOW HOUSING

AND

MODERATE

INCOME

SEC. 106. (a) The Secretary of Housing and Urban Development is authorized to provide, or contract with public or private organizations to provide, information, advice, and technical assistance with respect to the construction, rehabilitation, and operation by nonprofit organizations of housing for low or moderate income families. Assistance by the Secretary may include— (1) the assembly, correlation, publication, and dissemination of information with respect to the construction, rehabilitation, and operation of low and moderate income housing, and (2) the provision of advice and technical assistance with respect to the construction, rehabilitation, and operation of low and moderate income housing. (b)(1) The Secretary is authorized to make loans to nonprofit organizations for the necessary expenses, prior to construction, in planning, and obtaining financing for, the rehabilitation or construction of housing for low or moderate income families under any federally assisted program. Such loans shall be made without interest and shall not exceed 80 per centum of the reasonable costs expected to be incurred in planning, and in obtaining financing for, such housing prior to the availability of financing, including, but not limited to, preliminary surveys and analyses of market needs, preliminary site engineering and architectual fees, site acquisition, application and mortgage commitment fees, and construction loan fees and discounts. The Secretary shall require repayment of loans made under this subsection, under