NEHEMIAH HOUSING OPPORTUNITY GRANTS.

SEC. 183. NEHEMIAH HOUSING OPPORTUNITY GRANTS. (a) Homeowner Incentive.— Section 604 of the Housing and Community Development Act of 1987 (12 U.S.C. 17151 note) is amended— (1) in subsection (b)(4), by inserting before the period the following: “, subject to the provisions of subsection (c)”; and (2) by adding at the end the following new subsection: “(c) Homeowner Incentive.— The nonprofit organization may provide that, upon the sale or transfer of a property purchased with a loan made under this section, any proceeds remaining after repaying the first mortgage shall be distributed in the following order: “(1) Downpayment.—The amount of the downpayment made by the seller or transferor upon the purchase of the property shall be paid to the seller or transferor. “(2) Loan and profit.—Any amounts remaining after distribution under paragraph (1) shall be shared equally between the Secretary and the seller or transferor, but only to the extent that the Secretary recovers an amount equal to the amount of the loan made under this section. If such remaining 106 STAT. 3739amounts are insufficient for the Secretary to recover the full amount of the loan made under this section, the second mortgage held by the Secretary under subsection (b)(1) shall be cancelled. (3) Profit.—Any amounts remaining after distribution under paragraphs (1) and (2) shall be paid to the seller or transferor.” (b) Conforming Amendments.—Section 606(e)(5) of the Housing and Community Development Act of 1987 (12 U.S.C. 17151 note) is amended— (1) by inserting “subject to the provisions of section 604(c),” after the comma; and (2) by striking “(in which case” and all that follows through “repaid)”. (c) Applicability.—The amendments made by this section shall apply to any loan made under section 604 of the Housing and Community Development Act of 1987 after July 1,1990.