162
PUBLIC LAW 87-70-JUNE 30, 1961
[75 S T A T.
by mortgages insured under any section of this Aci: (other than section 12 USC i7i5e, 213) to be released from the liens of those mortgages. " (d) Any mortgagee under a mortgage insured under this section is entitled to receive the benefits of the insurance as provided in section 12 USC 1710. 204(a) of this Act with respect to mortgages insured under section 203, and the provisions of subsections (b), (c), (d), (e), (f), (g), (h), (j), and (k) of section 204 shall be applicable to the mortgages insured under this section, except that (1) all references in section 204 to the Mutual Mortgage Insurance Fund or the Fund shall be construed to refer to the Apartment Unit Insurance Fund, (2) all references 12 USC 1709. therein to section 203 shall be construed to refer to this section, and (3) the excess remaining, referred to in section 204(f)(1), shall be retained by the Commissioner and credited to the Apartment Unit Insurance Fund. ins'^lntT^*"!!-u^d! "(e) There is hereby created the Apartment Unit Insurance Fund creation. which shall be used by the Commissioner as a revolving fund for carrying out the provisions of this section. The Commissioner is authorized to transfer to the Fund the sum of $1,000,000 from the W a r Housing Insurance Fund established pursuant to the provisions of 12 USC 1737. section 602 of this Act. General expenses of operation of the Federal Housing Administration under this section may be charged to the Apartment Unit Insurance Fund. The provisions of the second and 12 USC 1715k. third paragraphs of section 220(g) shall be applicable to the Apartment Unit Insurance Fund and to this section, all references therein to the Section 220 Housing Insurance Fund or the Fund shall be construed to refer to the Apartment Unit Insurance Fund, and all references therein to 'this section' shall be construed to refer to this section 234. s t S f e l: ^°^' ^^ "(f) The provisions of sections 225, 229, and 230 shall be applicable 12 USC i7i5p, to the mortgages insured under this section." 171St, 1715U.
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TITLE II—HOUSING FOE ELDERLY PERSONS AND LOW INCOME FAMILIES HOUSING FOR THE ELDERLY DIRECT LOANS
U f^iX'?,^«^12 USC 170 Iq.
SEC. 201. (a) Section 202 of the Housing Act of 1959 is amended 1
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by—
42 us^c iflo.
(1) inserting in subsection (a)(1) after the words "private nonprofit corporations" the following: ", consumer cooperatives, or public bodies or agencies"; (2) striking out subsection (a)(2) and inserting in lieu thereof the following: "(2) In order to carry out the purpose of this section, the Administrator may make loans to any corporation (as defined in subsection (d)(2)), to any consumer cooperative, or to any public body or agency for the provision of rental or cooperative housing and related facilities for elderly families and elderly persons, except that (A) no such loan shall be made unless the applicant shows that it is unable to secure the necessary funds from other sources upon terms and conditions equally as favorable as the terms and conditions applicable to loans under this section, (B) no such loan shall be made unless the Administrator finds that the construction will be undertaken in an economical manner and that it will not be of elaborate or extravagant design or materials, and (C) no such loan shall be made to a public body or agency unless it certifies that it is not receiving financial assistance from the United States exclusively pursuant to the United States Housing Act of 1937.";
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