direct loans

direct loans Sec. 201. (a) Section 202 of the Housing Act of 1959 is amended by— (1) inserting in subsection (a)(1) after the words “private nonprofit corporations” the following: “, consumer cooperatives, or public bodies or agencies”; (2) striking out subsection (a)(2) and inserting in lieu thereof the following: “(2) In order to carry out the purpose of this section, the Administrator may make loans to any corporation (as defined in subsection (d)(2)), to any consumer cooperative, or to any public body or agency for the provision of rental or cooperative housing and related facilities for elderly families and elderly persons, except that (A) no such loan shall be made unless the applicant shows that it is unable to secure the necessary funds from other sources upon terms and conditions equally as favorable as the terms and conditions applicable to loans under this section, (B) no such loan shall be made unless the Administrator finds that the construction will be undertaken in an economical manner and that it will not be of elaborate or extravagant design or materials, and (C) no such loan shall be made to a public body or agency unless it certifies that it is not receiving financial assistance from the United States exclusively pursuant to the United States Housing Act of 1937.”; 75 Stat. 163 (3) striking out in subsection (a)(3) “A loan to a corporation under this section” and inserting in lieu thereof “A loan under this section”; and (4) striking out in subsection (c)(3) “corporation undertaking” and inserting in lieu thereof “corporation, cooperative, or public body or agency undertaking”. (b) Section 202(a)(3) of such Act is amended by striking out “98 per centum of”. (c) Section 202(a)(4) of such Act is amended by striking out “$50,000,000” and inserting in lieu thereof “$125,000,000”, and by striking out the second sentence. (d) Section 202 of such Act is further amended by adding at the end thereof the following new subsection: “(e) Nothing in this section or in regulations promulgated under this section shall prevent a corporation or consumer cooperative from obtaining a loan under this section for the provision of housing and related facilities for elderly families and elderly persons, notwithstanding the fact that such corporation or cooperative has theretofore obtained a commitment from the Federal Housing Administration for mortgage insurance under section 231 of the National Housing Act with respect to the housing involved, if (1) such corporation or cooperative is otherwise eligible for such loan under this section, (2) such commitment was obtained prior to the date of enactment of the Housing Act of 1961, and (3) the Administrator determines that the financing of such housing through a loan under this section rather than through mortgage insurance under such section 231 is necessary or desirable in order to avoid hardship for the elderly families and elderly persons who are the prospective tenants of such housing.”