97 STAT. 1224 PUBLIC LAW 98-181—NOV. 30, 1983 12 USC 1709. Regulations. Post, p. 1225. 12 USC 1715Z-10. "(c) Notwithstanding the provisions of subsection (a), the Secre- tary may insure under any provision of this title a mortgage or loan that meets the requirements of the first sentence of subsection (a) and that has provisions permitting adjustment of monthly payments and outstanding principal according to changes or percentages of changes in a selected price index if the Secretary determines— "(1) the principal obligation of the mortgage or loan initially does not exceed the percentage of the initial appraised value of the property specified in section 203(b) as of the date the mortgage or loan is accepted for insurance; and "(2) the monthly pa)Tnents and principal obligation of the mortgage or loan thereafter will not at any time be increased at a rate greater than the percentage change in the price index stipulated in the initial mortgage or loan contract. In carrying out this subsection, the Secretary shall give a priority to mortgages executed by mortgagors who, as determined by the Secre- tary, have not owned dwelling units within the preceding 3 years. The Secretary shall, not later than March 31, 1984, prescribe regula- tions establishing guidelines governing mortgages and loans described in this subsection and shall, to the extent practicable, conduct a demonstration program to insure mortgages and loans in accordance with this subsection during fiscal years 1984 and 1985. The aggregate number of mortgages and loans insured under this subsection, section 251, and section 252 in any fiscal year may not exceed 10 percent of the aggregate number of mortgages and loans insured by the Secretary under this title during the preceding fiscal year.". (c) The section heading of section 245 of such Act is amended to read as follows: "GRADUATED PAYMENT AND INDEXED MORTGAGES". GRADUATED PAYMENT MORTGAGES FOR MULTIFAMILY HOUSING SEC. 442. Section 245 of the National Housing Act, as amended in section 441, is amended by— (1) redesignating subsection (d) as subsection (e); and (2) inserting after subsection (c) the following new subsection: "(d)(l) The Secretary may insure, under any provision of this title relating to multifamily housing projects, mortgages and loans with provisions of varying rates of amortization corresponding to antici- pated variations in project income, to the extent the Secretary determines such mortgages or loans (A) have promise for expanding housing opportunities or meet special needs; (B) can be developed to include any safeguards for mortgagors, tenants, or purchasers that may be necessary to offset special risks of such mortgages; and (C) have a potential for acceptance in the private market. "(2) Notwithstanding any other provision of this title, the princi- pal obligation of a mortgage or loan insured pursuant to this subsection— "(A) may not exceed initially the percentage of the initial appraised value or replacement cost of the property involved that is required by the provision of this title under which such property is insured; and "(B) thereafter (including all interest to be deferred and added to principal) may not at any time be scheduled to exceed 100 percent of the projected value of such property. "(3) For purposes of this subsection, the projected value of a property shall be calculated by the Secretary by increasing the
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