778
PUBLIC LAW 88-560-SEPT. 2, 1964
[78 STAT.
which were caused by fire, flood, windstorm, or other casualty; or " (ii) for the purpose of enabling the borrower to pay that part of the cost of the construction or installation of sidewalks, curbs, gutters, street paving, street lights, sewers, or other public improvements, adjacent to or in the vicinity of property owned by him and used primarily for residential purposes, which is assessed against him or for which he is otherwise legally liable as the owner of such property; " (B) the term 'improvement' means conservation, repair, restoration, rehabilitation, conversion, alteration, enlargement, or remodeling; and " (C) the term 'financial institution' means a lender approved by the Commissioner as eligible for insurance under section 2 or 09 "^^ ^^°^' ^ mortgagee approved under section 203(b)(1)." 1709 75 Stat. 155. (b) Section 220(h)(2)(i) of such Act is amended by inserting 12 USC 1715k. before the semicolon at the end thereof the following: ", and be limited as required by paragraph (11)". (c) Section 220(h) of such Act is further amended by adding at the end thereof the following new paragraph: "(11) Notwithstanding any other provision of this Act, no home improvement loan made in whole or in part for the purpose specified in clause (A) (ii) of the second sentence oi paragraph (1) shall be insured under this subsection if such loan (or the portion thereof which is attributable to such purpose), when added to the aggregate principal balance of any outstanding loans insured under this subsection or section 203(k) which were made to the same borrower for the purpose so specified (or the portion of such aggregate balance which is attributable to such purpose), would exceed $10,000." HOME
IMPROVEMENT
LOANS ON PROPERTY H E L D U N D E R
LEASE
SEC. 113. Section 220(h)(2) (vi) of the National Housing Act is amended by striking out "a period of not less than 50 years to run from the date oi the loan" and inserting in lieu thereof "an expiration date in excess of 10 years later than the maturity date of the loan". FHA
68 Stat. 599. 12 USC 1715Z.
12 USC 1715r,
SECTION
221
HOUSING
FOR LOW-
OR MODERATE-INCOME
PERSONS
SEC. 114. (a) Section 221(d)(3) of the National Housing Act is amended by inserting after "or association" the following: ", or other mortgagor approved by the Commissioner, and". (b) Subsection (e) of section 221 of such Act is amended to read as follows: "(e)(1) A mortgagor which may be approved by the Commissioner as provided in subsection (d)(3) includes a mortgagor which, as a condition of obtaining insurance of the mortgage and prior to the submission of its application for such insurance, has entered into an agreement (in form and substance satisfactory to the Commissioner) with a private nonprofit corporation eligible for an insured mortgage under the provisions of subsection (d)(3), that the mortgagor will sell the project when it is completed to the corporation at the actual cost of the project, as certified pursuant to section 227 of this Act. The mortgagor to whom the property is sold shall be regulated or supervised by the Commissioner as provided in subsection (d)(3) to effectuate its purposes. "(2) The Commissioner may at any time, under such terms and conditions as he may prescribe, consent to the release of the mortgagor from his liability under the mortgage or the credit instrument secured
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