(1) IN GENERAL.—
(A) MONTHLY EXPENSES NOT EXCEEDING
PAYMENT
STANDARD.—If the monthly home-
ownership expenses, as determined in accord-
ance with requirements established by the Sec-
retary, do not exceed the payment standard, the
monthly assistance payment shall be the
amount by which the homeownership expenses
exceed the highest of the following amounts,
rounded to the nearest dollar:
(i) 30 percent of the monthly adjusted
income of the disabled family.
(ii) 10 percent of the monthly income
of the disabled family.
(iii) If the disabled family is receiving
payments for welfare assistance from a
public agency, and a portion of those pay-
ments, adjusted in accordance with the ac-
tual housing costs of the disabled family, is
specifically designated by that agency to
meet the housing costs of the disabled fam-
ily, the portion of those payments that is
so designated.
(B) MONTHLY
EXPENSES
EXCEED
PAY-
MENT STANDARD.—If the monthly homeowner-
ship expenses, as determined in accordance with
requirements established by the Secretary, ex-
ceed the payment standard, the monthly assist-
ance payment shall be the amount by which the
applicable payment standard exceeds the high-
est of the amounts under clauses (i), (ii), and
(iii) of subparagraph (A).
(2) CALCULATION OF AMOUNT.—
(A) LOW-INCOME
FAMILIES.—A disabled
family that is a low-income family shall be eligi-
ble to receive 100 percent of the amount cal-
culated under paragraph (1).
(B) INCOME BETWEEN 81 AND 89 PERCENT
OF MEDIAN.—A disabled family whose income
is between 81 and 89 percent of the median for
the area shall be eligible to receive 66 percent
of the amount calculated under paragraph (1).
(C) INCOME BETWEEN 90 AND 99 PERCENT
OF MEDIAN.—A disabled family whose income
is between 90 and 99 percent of the median for
the area shall be eligible to receive 33 percent
of the amount calculated under paragraph (1).
(D) INCOME MORE THAN 99 PERCENT OF
MEDIAN.—A disabled family whose income is
more than 99 percent of the median for the
area shall not be eligible to receive assistance
under this Act.
(c) INSPECTIONS AND CONTRACT CONDITIONS.—
(1) IN GENERAL.—Each contract for the pur-
chase of a dwelling unit to be assisted under this Act
shall—
(A) provide for pre-purchase inspection of
the dwelling unit by an independent profes-
sional; and
(B) require that any cost of necessary re-
pairs be paid by the seller.
(2) ANNUAL
INSPECTIONS
NOT
REQUIRED.—
The requirement under subsection (o)(8)(A)(ii) of
the United States Housing Act of 1937 for annual
inspections shall not apply to dwelling units assisted
under this Act.
(d) OTHER AUTHORITY OF THE SECRETARY.—The
Secretary may—
(1) limit the term of assistance for a disabled
family assisted under this Act;
(2) provide assistance for a disabled family for
the entire term of a mortgage for a dwelling unit if
the disabled family remains eligible for such assist-
ance for such term; and
(3) modify the requirements of this Act as the
Secretary determines to be necessary to make appro-
priate adaptations for lease-purchase agreements.
(e) ASSISTANCE PAYMENTS SENT TO LENDER.—The
Secretary shall remit assistance payments under this Act
directly to the mortgagee of the dwelling unit purchased
by the disabled family receiving such assistance payments.
(f) INAPPLICABILITY OF CERTAIN PROVISIONS.—As-
sistance under this Act shall not be subject to the require-
ments of the following provisions:
(1) Subsection (c)(3)(B) of section 8 of the
United States Housing Act of 1937.
(2) Subsection (d)(1)(B)(i) of section 8 of the
United States Housing Act of 1937.
(3) Any other provisions of section 8 of the
United States Housing Act of 1937 governing max-
imum amounts payable to owners and amounts pay-
able by assisted families.
(4) Any other provisions of section 8 of the
United States Housing Act of 1937 concerning con-
tracts between public housing agencies and owners.
(5) Any other provisions of the United States
Housing Act of 1937 that are inconsistent with the
provisions of this Act.
(g) REVERSION TO RENTAL STATUS.—
(1) FHA-INSURED MORTGAGES.—If a disabled
family receiving assistance under this Act for pur-
chase of a dwelling unit defaults under a mortgage
for the dwelling unit insured by the Secretary under
the National Housing Act, the disabled family may
not continue to receive rental assistance under sec-
tion 8 of the United States Housing Act of 1937 un-
less the disabled family—
(A) transfers to the Secretary marketable
title to the dwelling unit;
(B) moves from the dwelling unit within
the period established or approved by the Sec-
retary; and
(C) agrees that any amounts the disabled
family is required to pay to reimburse the es-
crow account under section 23(d)(3) of the
United States Housing Act of 1937 may be de-
ducted by the public housing agency from the
assistance payment otherwise payable on behalf
of the disabled family.
(2) OTHER MORTGAGES.—If a disabled family
receiving assistance under this Act defaults under a
mortgage not insured under the National Housing
Act, the disabled family may not continue to receive
rental assistance under section 8 of the United