EXPENDITURES TO CORRECT DEFECTS.

SEC. 515. EXPENDITURES TO CORRECT DEFECTS.Section 518(a) of the National Housing Act (12 U.S.C. 1735b(a)) is amended— (1) by redesignating paragraphs (1) through (3) as subparagraphs (A) through (C), respectively; and (2) by striking out “The Secretary” and all that follows through “make expenditures for” and inserting in lieu thereof the following: 106 STAT. 3790 “(1) The Secretary is authorized to make expenditures under this subsection with respect to any property that— “(A) is a condominium unit (including common areas) or is improved by a one-to-four family dwelling; “(B) was approved, before the beginning of construction, for mortgage insurance under this Act or for guaranty, insurance, or direct loan under chapter 37 of title 38, United States Code, or was less than a year old at the time of insurance of the mortgage and was covered by a consumer protection or warranty plan acceptable to the Secretary; and “(C) the Secretary finds to have structural defects. “(2) Expenditures under this subsection may be made for>”.