NATIONAL HOMEOWNERSHIP TRUST DEMONSTRATION.

SEC. 182. NATIONAL HOMEOWNERSHIP TRUST DEMONSTRATION. (a) Extension of Trust.—Section 310 of the Cranston-Gon-zalez National Affordable Housing Act (42 U.S.C. 12859) is amended by striking “on September 30, 1993” and inserting “September 30,1994”. (b) Authorization of Appropriations.—Section 308 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12857) is amended to read as follows: “SEC. 308. AUTHORIZATION OF APPROPRIATIONS.“There are authorized to be appropriated for assistance payments under this subtitle $520,665,600 for fiscal year 1993 and $542,533,555 for fiscal year 1994, of which such sums as may be necessary shall be available in each such fiscal year for use under section 303(e). Any amount appropriated under this section 106 STAT. 3737shall be deposited in the Fund and shall remain available until expended, subject to the provisions of section 311.” (c) Use of Trust Amounts in Connection With Mortgage Revenue Bonds.— (1) In general.—Section 303 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12852) is amended by adding at the end the following new subsection: “(e) Assistance in Connection With Housing Financed With Mortgage Revenue Bonds.— “(1) Authority.—The Trust shall provide assistance for first-time homebuyers in the form of interest rate buydowns and downpayment assistance under this subsection. Such assistance shall be available only with respect to mortgages for the purchase of residences (A) financed with the proceeds of a qualified mortgage bond (as such term is defined in section 143 of the Internal Revenue Code of 1986), or (B) for which a credit is allowable under section 25 of such Code. “(2) Eligibility.— To be eligible for assistance under this subsection, homebuyers and mortgages shall also meet the requirements under subsection (b) of this section, except that— “(A) the certification under subsection (b)(3) shall not be required for assistance under this subsection; “(B) the provisions of subsection (b)(2) shall not apply to assistance under this section; and “(C) the aggregate income of the homebuyer and the members of the family of the homebuyer residing with the homebuyer, for the 12-month period preceding the date of the application of the homebuyer for assistance under this subsection, shall not exceed 80 percent of the median income for a family of 4 persons (as adjusted for family size) in the applicable metropolitan statistical area. “(3) Limitation of assistance.— Notwithstanding sub-section (a), assistance payments for first-time homebuyers under this subsection shall be provided in the following manners: “(A) Interest rate buydowns.— Assistance payments to decrease the rate of interest payable on the mortgages by the homebuyers, in an amount not exceeding— “(i) in the first year of the mortgage, 2.0 percent of the total principal obligation of the mortgage; “(ii) in the second year of the mortgage, 1.5 percent of the total principal obligation of the mortgage; “(iii) in the third year of the mortgage, 1.0 percent of the total principal obligation of the mortgage; and “(iv) in the fourth year of the mortgage, 0.5 percent of the total principal obligation of the mortgage. “(B) Downpayment assistance.—Assistance payments to provide amounts for downpayments on mortgages by the homebuyers, in an amount not exceeding 2.5 percent of the principal obligation of the mortgage. “(3) Availability.—The Trust may make assistance payments under subparagraphs (A) and (B) of paragraph (3) with respect to a single mortgage of a homebuyer. (2) Conforming amendment.—Section 303(a) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12852(a)) is amended by adding at the end the following new paragraph: 106 STAT. 3738 “(3) Assistance in connection with mortgage revenue bonds financing.—Interest rate buydowns and downpayment assistance in the manner provided in subsection (e).”. (d) Eligibility of Manufactured Home Owners.—Section 303(b)(1) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12852(b)(1) is amended— (1) in subparagraph (B), by striking “or” at the end; (2) in subparagraph (C), by striking the period at the end and inserting “; or”; and (3) by adding at the end the following new subparagraph: “(D) meets the requirements of subparagraph (A), (B), or (C), except for owning, as a principal residence, a dwelling unit whose structure is— “(i) not permanently affixed to a permanent foundation in accordance with local or other applicable regulations; or “(ii) not in compliance with State, local, or model building codes, or other applicable codes, and cannot be brought into compliance with such codes for less than the cost of constructing a permanent structure.”. (e) Second Mortgage Assistance.—Section 303(a) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12852(a)) is amended by adding after paragraph (3) (as added by subsection (c)(3) of this section) the following new paragraphs: “(4) Second mortgage assistance.—Assistance payments to provide loans (secured by second mortgages) with deferred payment of interest and principal; and “(5) Capitalization of revolving loan funds.—Grants to public organizations or agencies to establish revolving loan funds to provide homeownership assistance to eligible first-time homebuyers consistent with the requirements of this sub-title. Such grants shall be matched by an equal amount of local investment in such revolving loan funds. Any proceeds or repayments from loans made under this paragraph shall be returned to the revolving loan fund established under this paragraph to be used for purposes related to this section.”.