96 1 ing out "October 1, 1972" and inserting in lieu thereof 2 "June 30, 1973". 3 (5) Section 810 (k) of such Act is amended by strik4 ing out "October 1, 1972" and inserting in lieu thereof 5 "June 30, 1973". 6 (6) Section 1002 (a) of such Act is amended by strik7 ing out "October 1, 1972" and inserting in lieu thereof 8 "June 30, 1973". 9 (7) Section 1101 (a) of such Act is amended by 10 striking out "October 1, 1972" and inserting in lieu thereof 11 "June 30, 1973". 122 (b) Section 217 of the National, Housing Act is 13 amended 14 15 16 17 18 (1) by inserting "section 243," after "section 236,"; and (2) by striking out "October 1, 1972" and insert ing in lieu thereof "June 30, 1973". (c) Section 221 (f) of the National Housing Act is 19 amended by striking out "No mortgage shall be insured 20 under this section after October 1, 1972" and inserting in 21 lieu thereof "No mortgage shall be insured under this sec22 tion (other than subsections (i) and (j)) after June 30, 23 1973". 24 (d) Section 243 (h) (2) of the National Housing Act 97 1 is amended by striking out "June 30, 1973" and inserting 2 in lieu thereof "June 30, 1974". 3 EXTENSION OF FLEXIBLE INTEREST RATE AUTHORITY 4 SEC. 112. Section 3 (a) of the Act entitled "An Act to 5 amend chapter 37 of title 38 of the United States Code with 6 respect to the veterans' home loan program, to amend the 7 National Housing Act with respect to interest rates on in8 sured mortgages, and for other purposes", approved May 7, 9 1968, as amended (Public Law 90-301; 12 U.S.C. 10 1709-1), is amended by striking out "June 30, 1972” and 11 inserting in lieu thereof "June 30, 1973". 12 INTERIM AUTHORIZATIONS FOR SECTION 235 AND SECTION 263 13 14 236 PROGRAMS SEC. 113. (a) The second sentence of section 235 (h) 15 (1) of the National Housing Act is amended by striking 16 out "and by $200,000,000 on July 1, 1971" and inserting 17 in lieu thereof "by $200,000,000 on July 1, 1971, and by 18 $115,000,000 on July 1, 1972". 19 (b) The second sentence of section 236 (i) (1) of the 20 National Housing Act is amended by striking out “and by 21 $200,000,000 on July 1, 1971" and inserting in lieu thereof 22 "by $200,000,000 on July 1, 1971, and by $200,000,000 223 on July 1, 1972". 98 1 2 EXPENDITURES TO CORRECT OR COMPENSATE FOR DEFECTS IN MORTGAGED HOMES 3 SEC. 114. Section 518 of the National Housing Act is 4 amended to read as follows: 5 "EXPENDITURES TO CORRECT OR COMPENSATE FOR DEFECTS 6 7 8 IN MORTGAGED HOMES "SEC. 518. (a) The Secretary is authorized, with respect to any property improved by a one- to four9 family dwelling approved for mortgage insurance prior to 10 the beginning of construction which he finds to have 11 structural defects, to make expenditures for (1) correct12 ing such defects, (2) paying the claims of the owner of 13 the property arising from such defects, or (3) acquiring title to the property: Provided, That such authority of the Secre 15 16 tary shall exist only (A) if the owner has requested assistance from the Secretary not later than four years (or such 17 shorter time as the Secretary may prescribe) after insurance 18 of the mortgage, and (B) if the property is encumbered by a mortgage which is insured under this Act after the date of 19 enactment of the Housing Act of 1964. "(b) If the owner of any one- to four-family dwelling which is covered by a mortgage insured under section 221 (d) (2) or 235 or which is located in an older urban area and is covered by a mortgage insured under section 203, and which is more than one year old on the date of the issuance 99 1 of the insurance commitment, makes application to the Secre2 tary not more than one year after the insurance of the mort3 gage (or, in the case of a dwelling covered by a mortgage the 4 insurance commitment for which was issued on or after 5 August 1, 1968, but prior to the date of the enactment of the 6 Housing and Urban Development Act of 1972, one year 7 after the date of the enactment of such Act) to correct any 8 structural or other defect of the dwelling attributable to a fail9 ure of the dwelling to meet applicable State laws, or local 10 ordinances or regulations, relating to the public health or 11 safety, the Secretary shall, with all reasonable promptness, 12 make expenditures for any of the purposes specified in sub13 section (a), unless the defect is one that did not exist on the 14 date of the issuance of the insurance commitment. The Sec15 retary may require from the seller of any such dwelling an agreement to reimburse him for any payments made pur17 suant to this subsection with respect to such dwelling. 18 "(c) The Secretary shall by regulations prescribe the 19 terms and conditions under which expenditures and pay 23 ments may be made under the provisions of this section." FINANCING OF HOME IMPROVEMENT LOANS FOR MIDDLE INCOME FAMILIES SEC. 115. (a) Section 243 of the National Housing Act 24 is amended by adding at the end thereof the following new 25 subsection: 100 1 "(k) (1) Whenever he determines such action to be 2 necessary in furtherance of the purposes set forth in section. 3 1601 of the Housing and Urban Development Act of 1968, 4 the Secretary is authorized to make and to contract to make, 5 from amounts authorized pursuant to subsection (h) (1), 6 periodic assistance payments with respect to home improve7 ment loans on behalf of families of middle income (herein8 after referred to as the 'borrowers'). The assistance shall be 9 accomplished through interest subsidy payments to the Fed10 eral National Mortgage Association or the Federal Home 11 Loan Mortgage Corporation (hereinafter referred to as the 12 'investor') with respect to home improvement loans meeting 13 the requirements of and insured under this subsection. 14 "(2) The interest subsidy payments authorized by this 15 subsection with respect to any home improvement loan shall 16 cease when (A) the borrower no longer occupies the prop17 erty which secures the loan, (B) the loan is no longer held 18 by the investor, or (C) the rate of interest paid by the 19 borrower reaches the rate of interest specified on the loan. "(3) Interest subsidy payments under this subsection 21 shall be made only on a home improvement loan on which 22 the borrower makes monthly payments toward principal 23 and interest equal to the amount which would be required 24 if the loan bore an effective interest rate of 7 per centum per 25 annum including any discounts or charges in the nature of 20 |