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1 the authority of the National Housing Act to the authority of 2 the Revised National Housing Act in order to assure con3 tinuity of efficient program activity and to provide adequate 4 opportunity for necessary administrative and legislative 5 revisions.

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CONFORMING AND TECHNICAL AMENDMENTS

SEC. 303. (a) Any reference in any Federal, State, or 8 local law to the National Housing Act shall be construed to 9 refer also to the Revised National Housing Act and any ref

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erence in such Federal, State, or local law to a particular 11 provision of the National Housing Act shall be construed to 12 refer also to the provision of the Revised National Housing 13 Act which corresponds in purpose and function to such pro14 vision of the National Housing Act.

15 (b) Section 2 (a) of the National Housing Act is 16 amended by inserting "or under title III of the Revised 17 National Housing Act" immediately after "under this sec18 tion" in the second sentence of the first paragraph. 19 (c) After the effective date of section 301 of this Act 20 all references in the National Housing Act to the "Mutual 21 Mortgage Insurance Fund", the "Special Risk Insurance 22 Fund" and the "Cooperative Management Housing Insurance Funds" shall be construed to refer to the "General 24 Insurance Fund".

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148

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION

SEC. 304. (a) Section 302 (b) (1) of the National 3 Housing Act is amended by striking out the proviso in the 4 first sentence, and by striking out the second sentence thereof 5 and inserting in lieu thereof the following new sentence: 6 "The Association may not purchase any mortgage under 7 section 305 if the original principal obligation thereof ex8 ceeds 130 per centum of the appropriate prototype cost deter9 mined by the Secretary pursuant to section 3 of the Revised 10 National Housing Act."

11 (b) (1) Section 301 (b) of such Act is amended by 12 striking out "President" and inserting in lieu thereof

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13 "Secretary".

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(2) Section 305 (a) of such Act is amended by strik15 ing out "President" and inserting in lieu thereof "Secretary". (3) Section 305 (c) of such Act is amended by strik17 ing out "President" and inserting in lieu thereof "Secretary". (4) Section 305 (h) of such Act is repealed.

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(5) Section 305 (j) of such Act is amended

(A) by striking out "equal to" and inserting in lieu thereof "not exceeding"; and

(B) by adding at the end thereof the following new sentence: "There are authorized to be appropriated such

sums as may be necessary to cover losses to the Associa

tion from the operation of this subsection."

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149

COUNSELING AND TECHNICAL ASSISTANCE

SEC. 305. (a) Section 106 of the Housing and Urban 3 Development Act of 1968 is amended by rewriting the head4 ing to read as follows: "TECHNICAL ASSISTANCE, COUNSEL5 ING TO TENANTS AND HOMEOWNERS, AND LOANS TO NON6 PROFIT SPONSORS OF LOW- AND 7 HOUSING".

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MODERATE-INCOME

(b) Section 106 (a) (1) (iii) of such Act is amended 9 to read as follows:

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121

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"(iii) the provision of training and counseling programs (including preoccupancy programs) for lowand moderate-income tenants and homeowners, including but not limited to, housing selection and purchase procedures, family budgeting, property use and maintenance, household management, and utilization of community resources; and".

(c) Section 106 (a) (1) of such Act is amended by 18 adding at the end thereof the following new subparagraph: "(iv) the provision of technical assistance to communities, particularly smaller communities, to assist such communities in planning, developing, and administering Community Development and Housing Assistance Program pursuant to title I of the Housing and Urban Development Act of 1973."

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222

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(d) Section 106 (a) (2) of such Act is amended by

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1 striking out "$5,000,000" and inserting in lieu thereof

2 "$40,000,000".

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4

5

EXPENDITURES TO CORRECT OR COMPENSATE FOR

DEFECTS IN MORTGAGED HOMES

SEC. 306. (a) Section 518 (b) of the National Housing

6 Act is amended to read as follows:

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"(b) If the owner of any one- to two-family dwelling

8 which is covered by a mortgage insured under section 221

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(d) (2) or 235 or which is located in an older, declining 10 urban area and is covered by a mortgage insured under this

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Act, and which is more than one year old on the date of 12 the issuance of the insurance commitment, makes application to the Secretary not more than one year after the in14 surance of the mortgage (or, in the case of a dwelling 15 covered by a mortgage the insurance commitment for which was issued on or after August 1, 1968, but prior to the 17 date of the enactment of the Housing and Urban Development Act of 1973, one year after the date of the enactment of such Act) to correct any structural or other defect which 20 seriously affects its use or livability, the Secretary shall, with all reasonable promptness, make expenditures for any of the purposes specified in subsection (a), unless the defect is one

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that did not exist on the date of the issuance of the insurance

24 commitment or is not one that a proper inspection could reasonably have been expected to disclose. The Secretary

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1 may require from the seller of any such dwelling an agree

2

ment to reimburse him for any payments made pursuant to

3 the subsection with respect to such dwelling."

4 (b) Section 518 of such Act is amended by adding at 5 the end thereof the following new subsection:

6 "(d) Expenditures made pursuant to this section shall 7 be made from the General Insurance Fund. There are 8 authorized to be appropriated such sums as may be needed 9 from time to time to compensate the Fund for expenditures 10 or anticipated expenditures under this section."