84 STAT. ]
PUBLIC LAW 91-609-DEC. 31, 1970 RENT SUPPLEMENT
1771
PAYMENTS
SEC. 103. Section 101(a) of the Housing and Urban Development Act of 1965 is amended by striking out "and by $100,000,000 on July 1, 1970" and inserting in lieu thereof "by $100,000,000 on July 1, 1970, and by $40,000,000 on July 1, 1971".
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C O M P E N S A T I O N FOR DEFECTS I N SECTION 2 3 5 E X I S T I N G H O U S I N G
SEC. 104. Section 518 of the National Housing Act is amended by redesignating subsection (b) as subsection (c) and inserting after subsection (a) a new subsection as follows: "(b) The Secretary is authorized to make expenditures to correct, or to compensate the owner for, structural or other defects which seriously affect the use and livability of any single-family dwelling which is covered by a mortgage insured under section 235 of this Act and is more than one year old on the date of the issuance of the insurance commitment, if (1) the owner requests assistance from the Secretary not later than one year after the insurance of the mortgage, or, in the case of a dwelling covered by a mortgage which was insured prior to the date of enactment of this subsection, one year after the date of enactment of this subsection, and (2) the defect is one that existed on the date of the issuance of the insurance commitment and is one that a proper inspection could reasonably be expected to disclose. The Secretary may require from the seller of any such dwelling an agreement to reimburse him for any payments made pursuant to this subsection with resj^ect to such dwelling."
78 Stat. 7 8 3. 12 USC 1735b.
U S E OF E X I S T I N G H O U S I N G UNDER SECTION 2 3 5 PROGRAM
SEC. 105. Section 235(h) of the National Housing Act is amended— (1) by striking out "July 1, 1971" in subparagraph (B) of paragraph (3) and inserting in lieu thereof "July 1, 1972"; and (2) by adding at the end thereof the following new paragraph: "(4) At least 10 per centum of the total amount of contracts for assistance payments authorized by appropriation Acts to be made after June 30, 1971, shall be available for use only with respect to dwellings, or dwelling units in projects, which are approved by the Secretary prior to substantial rehabilitation." MORTGAGE INSURANCE UNDER SECTION 2 3 5 (1) FOR R E H A B I L I T A T I O N OF DUPLEXES
SEC. 106. Section 2 3 5 (i)(3)(A) of the National Housing Act is amended by striking out "if the dwelling is purchased with the assistance of a nonprofit organization and is" and inserting in lieu thereof "and which is". ASSISTANCE U N D E R SECTION 2 3 5 PROGRAM FOR COOPERATIVE PROJECTS F I N A N C E D UNDER CERTAIN STATE OR LOCAL PROGRAMS
SEC. 107. Section 235(b)(2) of the National Housing Act is amended by inserting " (A) " after "the cooperative association of which the family is a member shall operate", and by inserting before the period at the end thereof the following: "; or (B) a housing project which is financed under a State or local program providing assistance through loans, loan insurance, or tax abatements, and which prior to completion of construction or rehabilitation is approved for receiving the benefits of this section".
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