101 1 points or otherwise (but not including premiums, if any, for 2 loan insurance), or such higher rate (not to exceed the rate 3 specified in the loan and approved by the Secretary) as the 4 borrower could pay by applying at least 25 per centum of 5 his income toward homeownership expenses. In addition to 6 the foregoing requirement, the Secretary may require that 7 the borrower have an income (determined as provided in 8 subsection (i)), at the time the home improvement loan is 9 originated, of not more than the median income for the area 10 in which the property is located, as determined by the Sec11 retary, with appropriate adjustments for smaller and larger 12 families. As used in this subsection, the term 'homeownership 13 expenses' includes payments for principal, interest, mortgage 14 insurance premium, insurance, and taxes due under any 15 mortgage or mortgages to which the property of the bor16 rower is subject or any loan insured under this subsection, 17 plus such other expenses relating to the maintenance and 18 operation of the property as the Secretary deems appro19 priate. 20 "(4) The interest subsidy payments under this sub21 section for any calendar quarter shall be in an amount equal 22 to the difference, as determined by the Secretary, between 23 the total amount of interest for such quarter received by 24 the investor on loans assisted under this subsection and 25 originated or purchased by it and the total amount of 102 1 interest which the investor would have received if the yield 2 on such loans was equal to the sum of (A) the average 3 costs to it (expressed on an annual percentage rate) of 4 all funds borrowed by it and outstanding in the immediately 5 preceding calendar quarter, and (B) such per centum per 6 annum as will provide for administrative and other expenses 7 of the investor and a reasonable economic return, as deter8 mined by the Secretary to be necessary and appropriate 9 taking into account the purpose of this subsection to provide 10 additional home improvement loan credit at reasonable rates 11. of interest to middle-income families. 12 23 "(5) Procedures shall be adopted by the Secretary for 13 recertifications of each borrower's income at intervals of two 14 years (or at shorter intervals where the Secretary deems 15 it desirable) for the purpose of adjusting the amount of 16 the borrower's payments pursuant to paragraph (3). 17 "(6) The Secretary is authorized to make commit18 ments to insure and to insure a home improvement loan 19 (including advances during construction or improvement) 20 under this subsection in accordance with the provisions of 21 section 220 (h), except that (A) the structure improved 22 shall be designed for occupancy by not more than four fam23 ilies and shall not be required to be located in the area of 24 an urban renewal project, and (B) the Secretary shall find 25 that the project with respect to which the loan is executed 79-555 - 72-8 103 1 is an acceptable risk. For the purposes of this paragraph, the 2 Secretary shall have all the authority provided in section 3 220 (h). Insurance benefits paid with respect to loans in4 sured under this paragraph shall be paid in accordance with 5 sections 220 (h) (6) and 220 (h) (7), except that as ap6 plied to those loans references in section 220 (h) to 'this 7 subsection' shall be construed to refer to this subsection. If 8 the insurance payment is made in cash, there shall be added 9 to such payment an amount equivalent to the interest which 10 the debentures would have earned, computed to a date to be 11 established pursuant to regulations issued by the Secretary." (b) (1) The first sentence of section 243 (a) of such 13 Act is amended by inserting "with respect to mortgages" 12 14 after "periodic assistance payments". 15 (2) The first sentence of section 243 (b) of such Act is 16 amended by inserting "under subsection (a)" after "assist 17 18 ance payments". (3) Section 243 (c) of such Act is amended by striking 19 out "this section" and inserting in lieu thereof "subsection 20 (a)". 21 (4) Section 243 (d) (1) of such Act is amended by in22 serting "under subsection (a)" after "Interest subsidy pay23 ments". 24 (5) Section 243 (e) of such Act is amended by insert 104 1 ing "under subsection (a)" after "interest subsidy pay 2 ments". 3 (6) Section 243 (g) of such Act is amended by insert4 ing "under subsection (a)" after "made". 5 (7) The first sentence of section 243 (h) (1) of such 6 Act is amended by striking out "this section" and inserting 7 in lieu thereof "subsections (a) and (k)”. 8 (8) Section 243 (h) (2) of such Act is amended by 9 striking out "this section" and inserting in lieu thereof "sub10 section (a) or (k)". 11 (9) Section 243 (j) (2) of such Act is amended 12 E23 13 14 (A) by striking out "this section" and inserting in lieu thereof "subsection (h) (1)"; and (B) by inserting "insured under this subsection" 15 before the period at the end thereof. 16 (10) Section 243 (j) (3) of such Act is amended by 17 striking out "this section" and inserting in lieu thereof "this 18 subsection". 19 (c) Paragraphs (10) and (11) of section 220 (h) of 20 such Act are amended by striking out "or 203 (k)” each 21 place it appears and inserting in lieu thereof ", 203 (k), or 22 243 (k)". 23 (d) Section 220 (h) (2) (i) of such Act is amended by 24 striking out "$12,000" and inserting in lieu thereof 25 "$15,000". 105 1 (e) Section 238 of such Act is amended by striking out 2 "243" each place it appears in subsections (a) (1) and (b) 3 and inserting in lieu thereof “243 (k)”. 4 REFINANCING OF ELDERLY FAMILY HOUSING UNDER SECTION 236 PROGRAM 5 6 SEC. 116. Section 236 (j) of the National Housing Act 7 is amended by adding at the end thereof the following new 8 paragraph: 9 "(7) (A) The Secretary is further authorized to insure 10 under this subsection a mortgage given to refinance a loan 11 which was made under section 202 of the Housing Act of 12 1959, at any time after the project covered by such loan 13 has been substantially completed and at least 90 per centum 14 of the dwelling units in such project have been rented. A 15 mortgage given to refinance a loan pursuant to this para16 graph may be insured without payment of any application 17 fee, commitment fee, examination fee, inspection fee, or 18 other fee or charge which would otherwise be imposed by or 19 payable to the Secretary with respect to insurance under 20 this subsection; and the total fees allowed for payment to 21 the mortgagee from insured mortgage loan proceeds in con22 nection with any loan being so refinanced shall not exceed 23 24 per centum of the total amount of the loan. A project cov24 ered by a mortgage insured pursuant to this paragraph shall 25 be occupied exclusively by elderly or handicapped families |