Page:United States Statutes at Large Volume 101 Part 3.djvu/655

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PUBLIC LAW 100-000—MMMM. DD, 1987

PUBLIC LAW 100-242—FEB. 5, 1988

101 STAT. 1953

(1) Each family purchasing a home under this title shall make a downpayment of not less than 10 percent of the sale price of such home unless— (A) the nonprofit organization determines a higher downpayment to be appropriate; or ! (B) the first mortgage on the home is held by a State or State and local unit of general local government under a home loan pro- governments. b n:; gram of the State or unit of general local government, and the program provides for a lower downpayment. (2) Any downpayment made under this subsection shall accrue interest from the date on which such downpayment is made through the date of settlement, at a rate not less than the passbook rate. Such interest shall be paid by the nonprofit organization involved to the family purchasing the home for which such downpayment was made. (d) LEASING PROHIBITION.—No family purchasing a home under this title may lease such home. SEC. 606. TERMS AND CONDITIONS OF ASSISTANCE.

(a) LOCAL CONSULTATION.—No proposed Nehemiah housing opportunity program may be approved by the Secretary under this title unless the nonprofit organization involved demonstrates to the satisfaction of the Secretary that— (1) it has consulted with and received the support of residents of the neighborhood in which such program is to be located; and (2) it has the approval of each unit of general local government in which such program is to be located. 0)) PROGRAM SCHEDULE.—Each nonprofit organization applying for assistance under this title shall submit to the Secretary an estimated schedule for completion of its proposed Nehemiah housing opportunity program, which schedule shall have been agreed to by each unit of general local government in which such program is to be located. (c) MINIMUM PARTICIPATION.—No nonprofit organization receiving assistance under this title may commence any construction or substantial rehabilitation (except with respect to homes to be constructed or substantially rehabilitated for the purpose of display) until not less than 25 percent of the homes to be constructed or substantially rehabilitated are contracted for sale to purchasers who intend to live in such homes and the required downpayments are made. (d) FINANCIAL FEASIBILITY.—The Secretary may not provide any assistance under this title to any nonprofit organization unless such nonprofit organization demonstrates the financial feasibility of its proposed Nehemiah housing opportunity program, including the availability of non-Federal public and private funds. (e) HOME QUALITY AND LOCATION.—A Nehemiah housing opportunity program may be approved under this title only if it provides that— (1) the number of homes to be constructed or substantially rehabilitated under such program will not be less than whichever of the following is less: (A) the greater of (i) 50 homes; or (ii) 0.25 percent of the number of existing dwelling units in the unit of general local government that provides the most assistance to such iii. program; or -^'.-.i (B) 250 homes;

State and local governments. 12 USC 1715Z note.