housing for low and moderate income persons and families

housing for low and moderate income persons and families Sec. 1001. Title V of the Housing Act of 1949 is amended by adding at the end thereof the following new section: “loans to provide occupant-owned, rental, and cooperative housing for low and moderate income persons and families “Sec. 521. (a) Notwithstanding the provisions of sections 502, 517 (a) and 515, loans to persons of low or moderate income under section 502 or 517(a)(1), and loans under section 515 to provide rental or cooperative housing and related Facilities for persons and families of low or moderate income or elderly persons and elderly families, shall bear interest at a rate prescribed by the Secretary at not. less than a rate determined annually by the Secretary of the Treasury taking into consideration the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturities of such loans, adjusted to the nearest one-eighth of 1 per centum, less not to exceed the difference between the adjusted rate determined by the Secretary of the Treasury and 1 per centum per annum: Provided, That such a loan may be made only when the Secretary determines that the needs of the applicant for necessary housing cannot lie met with financial assistance from other sources including assistance under section 235 or 236 of the National Housing Act: Provided further, That interest, on loans under section 502 or 517(a) to victims of natural disaster shall not exceed the rate which would be applicable to such loans under section 502 without regard to this section. “(b) Housing and related facilities provided with loans described in subsection (a) shall be located in rural areas: and applicants eligible for such loans under section 502 or 517 (a) (1), or for occupancy of housing provided with such loans under section 515, shall include otherwise qualified nonrural residents who will become rural residents. “(c) There shall be reimbursed to the Rural Housing Insurance Fund by annual appropriations the amounts by which non principal payments made from the fund during each fiscal year to the holders of insured loans described in subsection (a) exceed interest due from the borrowers during each year; and the Secretary from time to time may issue notes to the Secretary of the Treasury under section 517(h) to obtain amounts equal to such unreimbursed excess payments, pending the annual reimbursement by appropriation.”