45

by the mortgagor at par upon the termination of all obligations of the Secretary under the insurance.

"(2) The mortgage shall involve a principal obli

gation in an amount not to exceed $250,000 and not to exceed 90 per centum of the estimated replacement

cost of the property or project, including equipment

to be used in the operation of the multipurpose senior center, when the proposed improvements are completed and the equipment is installed.

"(3) The mortgage shall

"(A) provide for complete amortization by periodic payments within such term as the Sec

retary 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 under this section unless he has determined that the

center to be covered by the mortgage will be in com

pliance with minimum standards to be prescribed by

the Secretary.

1

2

2

3

4

5

6

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"(5) In the plans for such multipurpose senior center, due consideration shall be given to excellence

of architecture and design, and to the inclusion of works

of art (not representing more than 1 per centum of the cost of the project).

"(e) The Secretary shall fix and collect premium 7 charges for the insurance of mortgages under this section 8 which shall be payable annually in advance by the mort9 gagee, either in cash or in debentures of the Multipurpose 10 Senior Center Insurance Fund (established by subsection 11 (h)) issued at par plus accrued interest. In the case of any 12 mortgage such charge shall not be less than an amount 13 equivalent to one-fourth of 1 per centum per annum nor 14 more than an amount equivalent to 1 per centum per annum 15 of the amount of the principal obligation of the mortgage 16 outstanding at any one time, without taking into account 17 delinquent payments or prepayments. In addition to the 18 premium charge herein provided for, the Secretary is 19 authorized to charge and collect such amounts as he may 20 deem reasonable for the appraisal of a property or project 21 during acquisition, alteration, or renovation; but such charges 22 for appraisal and inspection shall not aggregate more than 1 per centum of the original principal face amount of the 24 mortgage.

23

25

"(f) The Secretary may consent to the release of a part

47

1 or parts of the mortgaged property or project from the lien of 2 any mortgage insured under this section upon such terms and 3 conditions as he may prescribe.

4 "(g) (1) The Secretary shall have the same functions, 5 powers, and duties (insofar as applicable) with respect to the 6 insurance of mortgages under this section as the Secretary of 7 Housing and Urban Development has with respect to the 8 insurance of mortgages under title II of the National Housing 9 Act.

10

"(2) The provisions of subsections (e), (g), (h), (i), 11 (j), (k), (1), and (n) of section 207 of the National Hous12 ing Act shall apply to mortgages insured under this section;

13 except that, for the purposes of their application with respect

14

15

17

18

19

to such mortgages, all references in such provisions to the General Insurance Fund shall be deemed to refer to the

Multipurpose Senior Center Insurance Fund, and all refer

ences in such provisions to 'Secretary' shall be deemed to

refer to the Secretary of Health, Education, and Welfare.

"(h) (1) There is hereby created a Multipurpose Senior 20 Center Insurance Fund which shall be used by the Secretary

21

as a revolving fund for carrying out all the insurance provi22 sions of this section. All mortgages insured under this section

23 shall be insured under and be the obligation of the Multi

48

1

(2) The general expenses of the operations of the

2 Department of Health, Education, and Welfare relating to

3 mortgages insured under this section may be charged to the 4 Multipurpose Senior Center Insurance Fund.

5

6

"(3) Moneys in the Multipurpose Senior Center Insurance Fund not needed for the current operations of the 7 Department of Health, Education, and Welfare with respect 8 to mortgages insured under this section shall be deposited 9 with the Treasurer of the United States to the credit of 10 such fund, or invested in bonds or other obligations of, 11 or in bonds or other obligations guaranteed as to principal 12 and interest by, the United States. The Secretary may, 13 with the approval of the Secretary of the Treasury, pur14 chase in the open market debentures issued as obligations 15 of the Multipurpose Senior Center Insurance Fund. Such 16 purchases shall be made at a price which will provide an 17 investment yield of not less than the yield obtainable from 18 other investments authorized by this section. Debentures so 19 purchased shall be canceled and not reissued.

20

"(4) Premium charges, adjusted premium charges, 21 and appraisal and other fees received on account of the 22 insurance of any mortgage under this section, the receipts 23 derived from property covered by such mortgages and from 24 any claims, debts, contracts, property, and security as25 signed to the Secretary in connection therewith, and all

49

1 earnings as the assets of the fund, shall be credited to the 2 Multipurpose Senior Center Insurance Fund. The principal 3 of, and interest paid and to be paid on, debentures which 4 are the obligation of such fund, cash insurance payments 5 and adjustments, and expenses incurred in the handling, 6 management, renovation, and disposal of properties ac7 quired, in connection with mortgages insured under this 8 section, shall be charged to such fund.

"

9 "(5) There are authorized to be appropriated to provide 10 initial capital for the Multipurpose Senior Center Insurance 11 Fund, and to assure the soundness of such fund thereafter,

14

"ANNUAL INTEREST GRANTS

"SEC. 432. (a) To assist nonprofit private agencies to 15 reduce the cost of borrowing from other sources for the 16 acquisition, alteration, or renovation of facilities for multi17 purpose senior centers, the Secretary may make annual 18 interest grants to such agencies.

19 "(b) Annual interest grants under this section with 20 respect to any facility shall be made over a fixed period not 21 exceeding forty years, and provision for such grants shall 22 be embodied in a contract guaranteeing their payment over 23 such period. Each such grant shall be in an amount not 24 greater than the difference between (1) the average annual 25 debt service which would be required to be paid, during the