88 STAT. ]
PUBLIC LAW 93-383--AUG. 22, 1974
693
REFINANCING OF INDEBTEDNESS FOR CERTAIN ELIGIBLE APPLICANTS
SEC. 502. Section 501(a)(4) of the Housing Act of 1949 is amended— ^2 USC 147i. (1) by adding after the comma at the end of clause (B) the following: "or, if combined with a loan for improvement, rehabilitation, or repairs and not refinanced, is likely to cause a hardship for the applicant, and"; and (2) striking out clauses (C) and (D) and inserting in lieu thereof the following: " (C) was incurred by the applicant at least five years prior to his applying for assistance under this title.". LOANS TO LEASEHOLD OWNERS UNDER ALL RURAL HOUSING PROGRAMS
SEC. 503. Section 501(b)(2) of the Housing Act of 1949 is amended by striking out "sections 502 and 504" and inserting in lieu thereof "this title". REHABILITATION LOANS AND GRANTS
SEC. 504. Section 504(a) of the Housing Act of 1949 is amended to read as follows: " (a) I n the event the Secretary determines that an eligible applicant cannot qualify for a loan under the provisions of sections 502 and 503 and that repairs or improvements should be made to a rural dwelling occupied by him in order to make such dwelling safe and sanitary and remove hazards to the health of the occupant, his family, or the community, and that repairs should be made to farm buildings in order to remove hazards and make such buildings safe, the Secretary may make a grant or a combined loan and grant to the applicant to cover the cost of improvements or additions, such as repairing roofs, providing toilet facilities, providing a convenient and sanitary water supply, supplying screens, repairing or providing structural supports, or making similar repairs, additions, or improvements, including all preliminary and installation costs in obtaining central water and sewer service. No assistance shall be extended to any one individual under this subsection in the form of a loan, grant, or combined loan and grant in excess of $5,000. Any portion of the sums advanced to the borrower treated as a loan shall be secured and be repayable within twenty years in accordance with the principles and conditions set forth in this title, except that a loan for less than $2,500 need be evidenced only by a promissory note. Sums made available by grant may be made subject to the conditions set forth in this title for the protection of the Government with respect to contributions made on loans made by the Secretary.".
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E S C R O W ACCOUNTS FOR T A X E S, INSURANCE, A N D OTHER EXPENSES
SEC. 505. (a) Section 501 of the Housing Act of 1949 is amended by 42 USC 1471. adding at the end thereof the following new subsection: "(e) The Secretary may establish procedures whereby borrowers under this title may make periodic payments for the purpose of taxes, insurance, and such other necessary expenses as the Secretary may deem appropriate. Such payments shall be held in escrow by the Secretary and paid out by him at the appropriate time or times for the purposes for which such payments are made. The Secretary shall notify a borrower in writing when his loan payments are delinquent.". (b) The second sentence of section 502(a) of such Act is amended " ^ use 1472. ^ by inserting before the period at the end thereof the following: "and on the borrower prepaying to the Secretary as escrow agent, on terms and conditions prescribed by him, such taxes, insurance, and other
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