fha section 221 housing for low- or moderate-income persons

fha section 221 housing for low- or moderate-income persons Sec. 114. (a) Section 221(d)(3) of the National Housing Act is amended by inserting after “or association” the following: “, or other mortgagor approved by the Commissioner, and”. (b) Subsection (e) of section 221 of such Act is amended to read as follows: “(e) (1) A mortgagor which may be approved by the Commissioner as provided in subsection (d)(3) includes a mortgagor which, as a condition of obtaining insurance of the mortgage and prior to the submission of its application for such insurance, has entered into an agreement (in form and substance satisfactory to the Commissioner) with a private nonprofit corporation eligible for an insured mortgage under the provisions of subsection (d)(3), that the mortgagor will sell the project when it is completed to the corporation at the actual cost of the project, as certified pursuant to section 227 of this Act. The mortgagor to whom the property is sold shall be regulated or supervised by the Commissioner as provided in subsection (d) (3) to effectuate its purposes. “(2) The Commissioner may at any time, under such terms and conditions as he may prescribe, consent to the release of the mortgagor from his liability under the mortgage or the credit instrument secured 78 Stat. 779thereby, or consent to the release of parts of the mortgaged property from the lien of the mortgage.” (c) Section 221(d) (3) of such Act is amended by inserting before the colon at the end of the first proviso in clause (iii): “: Provided further, That in the case of any mortgagor other than a nonprofit corporation or association, cooperative (including an investor-sponsor), or public body, or a mortgagor meeting the special requirements of subsection (e) (1), the amount of the mortgage shall not exceed 90 per centum of the amount otherwise authorized under this section”. (d) The last sentence of section 221(f) of such Act is amended by striking out “July 1, 1965”, each place it appears, and inserting in lieu thereof “September 30, 1965”.