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Assistance shall not be withheld under the new program or made <br />subject to preferences if the mortgage insurance does not involve <br />"co-insurance" (the new 1974 provision, Section 244 of the National <br />Housing Act) or by reason of the tax-exempt status of the bonds or <br />other obligations to be used to finance such construction or sub- <br />stantial rehabilitation. In addition, nothing in the act shall prohibit <br />an owner frown offering, as security for any loan or obligation, a <br />federal contract for assistance payments, if the terms of the <br />financing or any refinancing have been approved by the Secretary. <br />Bond obliga%io.ns,.issued by local housing authorities shall not <br />carr~the full faith and credit guarantee of the federal government. <br />Obligations of qualified state housing finance and development <br />agencies shall ca, try such federal guarantee only if they are <br />incurred in connection with slum revitalization. ~Preliminary loan <br />contracts are not provided, but public housing agencies are made <br />eligible for 80 percent interest free loans for pre-construction <br />activity (Section <br />In relationship to contracts entered into by the Secretary with a <br />public housing agency, such agency may purchase any structure <br />for the purpose of reselling the structure to the tenant or tenants <br />occupying units aggregating in value at lease 80 percent of the <br />structure's total value. Any such resale shall include such terms <br />and conditions as the public housing agency may determine, without <br />affecting the Secretary's commitment to pay annual contributions <br />not exceeding debt service on the outstanding bonds. <br /> <br />GENERAL REQUIREMENTS (apply to both existing housing and new construction <br />or s{~bs~antial rehabilitation). <br /> <br />FAMILY ELIGIBILITY AND OCCUPANCY <br /> <br />Initial occupancy is restricted to those families defined as "lower <br />income" - those whose incomes do not exceed 80 percent of the <br />median income of the area, as determined by the Secretary, with <br />adjustments for smaller and larger families, except that the <br />Secretary may establish income ceilings higher or lower than <br />80 percent because of ~is findings th~ such variations are <br />necessary because of prevailing levels of construction costs, <br />unusually high or Iow family incomes, or other factors, "Income" <br />means income from all sources of each member of the family, <br />as defined by the Secretary. Reviews of family income shall <br />be made at least annually, except in the case of the <br />elderly, which may be at two-year intervals. <br /> <br />000106 <br /> <br /> <br />