82 STAT. ]
PUBLIC LAW 90-448-AUG. 1, 1968
507
CONDOMINIUMS
SEC. 303 (a) Seotion 234(c) of the National Housing Act is amended ^s Stat. leo; by striking out "rental housing, and (3) " in the first sentence and ^^2 USC^m5y. inserting m lieu thereof the following: "rental housing: Provided, That a one-family unit in a multifamily project involving eleven or less units ^hall be eligible for insurance without having been covered by a project mortgage, and (3)". (b) Section 234(c) of such Act is further amended by striking out " (iii) 75 per centum" in the third sentence and inserting m lieu thereof " (iii) 80 per centum". (c) Section 234(f) of such Act is amended by striking "five" and ^^ ^***- '^^^• inserting in lieu thereof "four". INSURANCE OF LOANS FOR P U R C H A S E OF F E E S I M P L E TITLE FROM LESSORS
SEC. 304. (a) Title II of the National Housing Act is amended by 12 USC 1707adding after section 239 (as added by section 302 of this Act) the ^^^^yfollowing new section: u P U R C H A S E OF F E E S I M P L E TITLE FROM LESSORS
"SEC. 240. (a) The Secretary is authorized, upon such terms and conditions as he may prescribe, to make commitments to insure and to insure loans made by financial institutions for the purpose of financing purchasers by homeowners of the fee simple title to property on which their homes are located. " (b) As used in this section—"(1) the term 'financial institution' means a lender approved stituu^n""'^^'" by the Secretary as eligible for insurance under section 2 or a 12 USC 1703. mortgagee approved under section 203(b)(1); and 52 Stat. 10. "(2) the term 'homeowner' means a lessee under a long-term "Homeowner!' ground lease. "(c) To be eligible for insurance under this section, a loan shall— "(1) relate to property on which there is located a dwelling designed principally for a one-, two-, three-, or four-family residence; "(2) not exceed the cost of purchasing the fee simple title, or $10,000 per family unit, whichever is the lesser; "(3) be limited to an amount which when added to any outstanding indebtedness related to the property (as determined by the Secretary) creates a total outstanding indebtedness which does not exceed the applicable mortgage limit prescribed in section 203(b); "(4) bear interest at not to exceed such per centum per annum (not in excess of 6 per centum), on the amount of the prmcipal obligation outstanding at any time, as the Secretary finds necessary to meet market conditions, and such other charges (including service charges and appraisal, inspection, and other fees) as may be approved by the Secretary; "(5) have a maturity satisfactory to the Secretary, but not to exceed twenty years from the beginning of amortization of the loan or three-quarters of the remaining economic life of the home, whichever is the lesser; and " (6) comply with such other terms, conditions, and restrictions as the Secretary may prescribe. " (d) The provisions of paragraphs (3), (5), (6), (7), (8), and 155. (10) of section 220(h) shall be applicable to loans insured under this 75 Stat. 1715k. 12 USC section and, as applied to loans insured under this section, references
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