state funding of section 236 interest reduction payments

state funding of section 236 interest reduction payments Sec. 121. (a) Section 236 of the National Housing Act is amended by adding at the end thereof the following new subsection: “(n) The Secretary is authorized to enter into agreements with any State or agency thereof under which such State or agency thereof contracts to make interest reduction payments, subject to all the terms and conditions specified in this section and in rules, regulations and procedures adopted by the Secretary under this section, with respect to all or a part of a project covered by a mortgage insured under this section. Any funds provided by a State or agency thereof for the purpose of making interest reduction payments shall be administered, disbursed and accounted for by the Secretary in accordance with the agreements entered into by the Secretary with the State or agency thereof and for such fees as shall be specified therein. Before entering into any agreements pursuant to this subsection the Secretary shall require assurances satisfactory to him that the State or agency thereof is able to provide sufficient funds for the making of interest, reduction payments for the full period specified in the interest reduction contract.” (b) The first sentence of section 236 (i) (1) of such Act is amended by inserting “by the Secretary” immediately following “entered into”.