51 1 priation from which the original reservation was made or the 2 appropriation for the fiscal year in which such amendment 4 (e) If, within twenty years after completion of any 5 construction project for which funds have been paid under 6 this section, the rehabilitation facility shall cease to be a public or other nonprofit rehabilitation facility, the United 8 States shall be entitled to recover from the applicant or other 9 owner of the facility the amount bearing the same ratio to 10 the then value (as determined by agreement of the parties 11 or by action brought in the United States district court for 12 the district in which such facility is situated) of the facility, 13 as the amount of the Federal participation bore to the cost 14 of construction of such facility. 15 (f) The Secretary is also authorized to make grants to 16 assist in the initial staffing of any public or other nonprofit 17 rehabilitation facility constructed after the date of enactment 18 of this section (whether or not such construction was fi19 nanced with the aid of a grant under this section) by cover20 ing part of the costs (determined in accordance with regula21 tions of the Secretary) of compensation of professional or 22 technical personnel of such facility during the period be23 ginning with the commencement of the operation of such 24 facility and ending with the close of four years and three 25 months after the month in which such operation commenced. 52 1 Such grants with respect to any facility may not exceed 75 2 per centum of such costs for the period ending with the 3 close of the fifteenth month following the month in which 4 such operation commenced, 60 per centum of such costs for 5 the first year thereafter, 45 per centum of such costs for 6 the second year thereafter, and 30 per centum of such costs 7 for the third year thereafter. 8 9 (g) The Secretary is also authorized to make grants upon application approved by the appropriate State agency 10 designed under section 105 (a) (1), to public or other non 11 profit agencies, institutions, or organizations to assist them 12 in meeting the costs of planning rehabilitation facilities and 13 the services to be provided thereby. 14 15 (h) Payment of grants under subsection (f) or (g) may be made (after necessary adjustment on account of pre16 viously made overpayments or underpayments) in advance 17 18 19 20 222 or by way of reimbursement, and in such installments and on such conditions, as the Secretary may determine. (i) For purposes of this title (1) "construction" includes construction of new 21 buildings, acquisition of existing buildings, and expan 23 24 25 sion, remodeling, alteration, and renovation of existing buildings, and initial equipment of such new, newly ac quired, expanded, remodeled, altered, or renovated buildings; 14 53 (2) the "cost" of construction includes the cost of architects' fees and acquisition of land in connection with construction, but does not include the cost of offsite improvements; and (3) a project for construction of a rehabilitation facility which is primarily a workshop may include such construction as may be necessary to provide residential accommodations for use in connection with the rehabilitation of individuals with developmental disabilities or such other categories of handicapped individuals as the Secretary may designate. MORTGAGE INSURANCE FOR MULTIPURPOSE REHABILITATION FACILITIES SEC. 406. (a) It is the purpose of this section to assist 15 and encourage the provision of urgently needed facilities for 16 programs for the handicapped. 17 (b) For the purpose of this part the terms "mortgage", 18 "mortgagor", "mortgagee", "maturity date", and "State" 19 shall have the meanings respectively set forth in section 207 20 of the National Housing Act. 21 (c) The Secretary is authorized to insure any mortgage 22 (including advances on such mortgage during construction) 23 in accordance with the provisions of this section upon such 24 terms and conditions as he may prescribe and make commit 54 1 ments for insurance of such mortgage prior to the date of its 2 execution or disbursement thereon. 3 (d) In order to carry out the purpose of this section, 4 the Secretary is authorized to insure any mortgage which 5 covers a new multipurpose rehabilitation facility, including 6 equipment to be used in its operation, subject to the following 7 conditions: 8 (1) The mortgage shall be executed by a mortgagor, 9 approved by the Secretary, who demonstrates ability suc10 cessfully to operate one or more programs for the handi11 capped. The Secretary may in his discretion require any 12 such mortgagor to be regulated or restricted as to minimum 13 charges and methods of financing, and, in addition thereto, if 14 the mortgagor is a corporate entity, as to capital structure 15 and rate of return. As an aid to the regulation or restriction 16 of any mortgagor with respect to any of the foregoing mat17 ters, the Secretary may make such contracts with and ac18 quire for not to exceed $100 such stock or interest in such 19 mortgagor as he may deem necessary. Any stock or interest 20 so purchased shall be paid for out of the Multipurpose Re21 habilitation Facilities Insurance Fund, and shall be redeemed 22 by the mortgagor at par upon the termination of all obliga23 tions of the Secretary under the insurance. 24 (2) The mortgage shall involve a principal obligation 25 in an amount not to exceed $250,000 and not to exceed 90 55 1 per centum of the estimated replacement cost of the property 2 or project, including equipment to be used in the operation 3 of the multipurpose rehabilitation facilities, when the pro4 posed improvements are completed and the equipment is 5 installed. 6 7 8 9 10 10 11 12 13 14 15 (3) The mortgage shall (A) provide for complete amortization by periodic payments within such term as the Secretary shall prescribe, and (B) bear interest (exclusive of premium charges for insurance and service charges, if any) at not to exceed such per centum per annum on the principal obligation outstanding at any time as the Secretary finds necessary to meet the mortgage market. (4) The Secretary shall not insure any mortgage un 16 der this section unless he has determined that the center to 17 be covered by the mortgage will be in compliance with mini18 mum standards to be prescribed by the Secretary. 19 (5) In the plans for such Multipurpose Rehabilitation 20 Facilities, due consideration shall be given to excellence of 21 architecture and design, and to the inclusion of works of art 22 (not representing more than 1 per centum of the cost of the 23 project). 24 (e) The Secretary shall fix and collect premium 25 charges for the insurance of mortgages under this section |