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inal project mortgage or where the original project

mortgage covering a cooperative housing project is uninsured.

(d) All premiums, fees, charges, and other income re5 ceived by the Secretary in connection with the insurance 6 of mortgages or loans shall be credited to the fund obligated 7 for such insurance. All payments made pursuant to claims of 8 mortgages, cash adjustments, the principal of and interest 9 paid on debentures, expenses incurred in connection with 10 the acquisition and disposal of property, nonadministrative 11 and administrative expenses, and all other authorized ex12 penditures incurred pursuant to this Act and the National 13 Housing Act shall be paid out of the fund obligated for such 14 insurance.

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(e) The Secretary is authorized to borrow from the Treasury from time to time such amounts as the Secretary 17 shall determine are necessary to pay insurance claims in 18 cash, in lieu of issuing debentures. Notes or other obligations 19 issued by the Secretary for amounts borrowed under this 20 subsection shall bear interest at a rate determined by the

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Secretary of the Treasury, taking into consideration the cur22 rent average market yield on outstanding marketable obliga

23 tions of the United States with remaining periods to maturity

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comparable to the average maturities of such notes or other 25 obligations.

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1 (f) Moneys in an insurance fund not needed for cur2 rent operations of the fund shall be deposited with the 3 Treasurer of the United States to the credit of the fund

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or invested in bonds or other obligations of, or in bonds or 5 other obligations guaranteed by, the United States or any 6 agency of the United States. The Secretary, with the ap7 proval of the Secretary of the Treasury, may purchase in the 8 open market debentures which are the obligation of the 9 fund. Such purchases shall be made at a price which will 10 provide an investment yield of not less than the yield obtained 11 from other investments authorized by this subsection. Deben12 tures so purchased shall be canceled and not reissued.

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(g) The Secretary is authorized to advance from one 14 insurance fund to another such amounts as he considers nec15 essary for the administration of the funds. Such advances 16 shall be repayable at such times and at such rates of interest 17 as the Secretary deems appropriate.

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(h) There are authorized to be appropriated such sums

19 as may be needed from time to time to cover losses sustained

20 by the General Insurance Fund or the Special Risk Insur

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ance Fund.

(i) With respect to receipts from premium charges for 23 any mortgage or loan which is an obligation of the Special 24 Risk Insurance Fund, and which is accepted for insurance 25 pursuant to a commitment issued under this Act, up to

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1 50 per centum of the amounts received shall be available to

2 the Secretary, for use either directly or by contract, for the

3 following purposes:

(1) the provision of training and counseling programs (including preoccupancy programs) in activities related to homeownership for families eligible for mortgages or loans for which the Special Risk Insurance Fund is or would be obligated, including but not limited

to such items as counseling in family budgeting and financial matters, housing selection and purchase proce

dures, property maintenance, home management, and utilization of community resources (including referrals to such resources);

(2) the making of studies of typical homeowner problems, including but not limited to basic home main

tenance problems, and the dissemination of information

on such problems through periodic consumer bulletins;

(3) the conduct of continuing analyses and studies designed to develop criteria for determining the eligi

bility of families for Federal homeownership assistance

that will make such assistance available to a maximum

number of families while furthering successful homeownership;

(4) the provision to tenants in federally subsidized rental housing covered by mortgages or loans for which

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the Special Risk Insurance Fund is obligated of train

ing and counseling programs in family financial man

agement, utilization and maintenance of equipment and

property, home management, and utilization of com

munity resources (including referrals to such resources);

(5) the provision of training programs for local and other personnel recruited to be members of the management staffs of federally assisted rental housing,

including new careers programs for low-income persons, especially those who are tenants of federally assisted rental housing;

(6) the preparation of model management operating manuals for project managers in federally assisted

rental housing projects;

(7) the provision of "seed money" loans (repayable with interest) to help form corporations to manage federally subsidized housing projects covered by mortgages or loans for which the Special Risk Insurance Fund is or would be obligated, where such corporations include or will include persons with management experi

ence and persons with experience in working with social problems of low- and moderate-income tenants and members of minority groups, and the provision of advanced

training in tenant relations, social service liaison, and

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other management skills for the staffs for such corpora

tions;

(8) participation in rental project application reviews and conferences prior to approval to ascertain that

design, materials, and the management and operating budget and plan are conducive to good management and operating efficiency;

(9) the provision of encouragement and assistance to management in the formation of tenant councils in projects covered by mortgages or loans for which the Special Risk Insurance Fund is obligated; and

(10) engaging in adequate Federal monitoring of

management operations in order to identify developing weaknesses before federally assisted projects covered by mortgages or loans for which the Special Risk Insurance Fund is obligated reach a serious problem condition.

INSURANCE PREMIUMS AND CHARGES

SEC. 202. (a) The Secretary is authorized to fix an 19 insurance premium for the insurance of mortgages and loans 20 under this Act. The Secretary may require the payment 21 of the insurance premium on an advance or a deferred 22 basis, except that with respect to any mortgage or loan 23 insured under title V or with respect to any loan under 24 title III, such insurance premium shall be payable annually 25 in advance by the mortgagee or lender.