Section of National Housing Act (NHA) 235(J) (1)

235(j) (2)

235(j) (3)

235(j) (4)

DESCRIPTION Authorizes Secretary to insure mortgages to finance purchase and rehabilitation where units are substandard or deteriorating of l- or 2-family dwellings or one-family condominium units by nonprofit or public body.

1. Requires project to contain four or more
units (unless none involves rehabilitation).
2. Requires mortgage not exceed the appraised
value of the unit plus the cost of any
rehabilitation.

3. Prescribes maximum interest rate of 6%. Secretary authorized to prescribe mortgage term.

4.

5. Authorizes individual units to be released from the lien of the mortgage upon sale. Requires area in which housing is located to be sufficiently stable and have adequate public facilities to support long-term values.

1. Authorizes Secretary to insure individual
mortgages released from 235(j) (1) project
mortgages.

2. Requires mortgage amount not exceed unpaid
portion of blanket mortgage allocable to
dwelling.

3. Requires interest rate to be the same as for the blanket mortgage.

DISPOSITION IN REVISED NATIONAL

HOUSING ACT (RNHA)

Project mortgage can be insured under sec. 502. See sec. 501(a)(iii), but public bodies not qualified under sec. 502. Two-family dwellings cannot qualify under sec. 402 under which the individual mortgages will be insured. Like section 235(j) of the NHA the purchase of a combination of existing substandard and standard units could be financed. The Secretary would have the discretion under sec. 402 to exclude units rehabilitated pursuant to sec. 502 from the 30% existing housing limitation in sec. 402.

1. Five or more units are required. Sec. 501 (1).

6.

Requires $200 minimum downpayment. Authorizes units in project to be operated as rental units controlled by the Secretary until they are sold. 7. Specifies no adjusted premium charge upon termination of blanket mortgage. Contains definitions

Rental and Cooperative Housing for Lower Income
Families.

States purpose of section.

Same. Sec. 402 (h) (2)

Sec. 401(b)(2).

No similar provision. This provision is unnecessary.

7. No similar provision. This provision is unnecessary.

Described under first heading - 235(j) (1) of NHA.

Same, except "families" changed to read "tenants" to reflect elimination of limitations now contained in the NHA on the occupancy of nonelderly individuals. Sec. 502(a).

Contained in sec. 502 (b), except State payment must be new or rehabilitated.

Same.

Sec. 502(c).

66-842 O 71 pt. 1 --13

Same, except in up to 20% of units in any project additional assistance payments may be made to lower rent paid to 30% of basic rental or to 25% of tenant's income. Sec. 502(f).