Contained in sec. 502(b), except State payment must be new or rehabilitated.

Same

Sec. 502(c).

Authorizes Secretary to reimburse the mortgagee for his additional expenses in handling sec. 236 mortgage.

Authorizes Secretary to regulate tenant eligibility and rents and to prescribe procedures for recertification of tenant incomes at least every two years.

Requires tenant to pay rental equal to the greater of the basic rental for his unit (amount required to operate the project with the maximum subsidy) or 25% of his income, but the rental cannot exceed the market rental for the unit (the amount required to operate the project without any subsidy,.

Same, except in up to 20% of units in any project additional assistance payments may be made to lower rent paid to 30% of basic rental or to 25% of tenant's income. Sec. 502(f).

DISPOSITION IN REVISED NATIONAL
HOUSING ACT (RNHA)

Contained in sec. 502 (g), but no revolving fund
is created and returned funds are credited to
appropriations for use until the end of the next
fiscal year.

Contained in sec. 501(j)(2).

1. Median income in the area (adjusted according to family size), but Secretary could establish income ceilings higher or lower than the median in any area where he found such variation necessary because of construction costs, unusually high or low median incomes, or other factors.

No separate provision. Substantially the same purposes can be accomplished through experience with sec. 402 subsidized mortgages for lower income families which are "special risk" mortgages and through a limited number of sec. 401 mortgages. Of the three groups to be afforded a preference under sec. 237, one (over-income families forced out of public housing) will no longer exist if the provisions of title II of 1971 HUD bill are enacted, and the other two categories can be handled directly under the homeownership assistance program of sec. 402.

The same counseling services are provided by sec. 903 of the 1970 HUD Act.

66-138 O 71 pt. 1 - 32