(a) The agency may make loans to any mortgagor for the construction, reconstruction or rehabilitation of housing units for sale to individual purchasers of low or moderate income as provided by the agency in its rules and regulations and to any such individual purchaser for the long-term financing of a housing unit. A loan under this section may be in an amount not to exceed one hundred per cent of the total project cost as approved by the agency.

(b) While such loan is outstanding, any sale by the mortgagor or any subsequent resale shall be subject to approval by the agency and the agency shall provide in its rules and regulations concerning such sales and resales that the price of the housing unit sold, the method of making payments thereafter, the security afforded and the interest rates, fees and charges to be paid shall at all times be sufficient to permit the agency to make the payments on its bonds and notes plus any administrative or other costs of the agency in connection with the transactions. Housing units shall be sold under terms that provide for monthly payments including principal, interest, taxes and insurance.

(c) While such loan is outstanding, the agency shall, prior to the approval of sale by the mortgagor or any subsequent resale, satisfy itself that such sale or resale is to persons of low or moderate income.

(d) Upon the sale by the mortgagor of any housing unit to an individual purchaser of low or moderate income under this subsection to whom a loan is being made by the agency, such housing unit shall be released from the mortgage running from the mortgagor to the agency and such mortgage shall be replaced as to the housing unit by a mortgage running from the individual purchaser to the agency.

(e) Loans may, in addition, be made directly to individual purchasers of low or moderate income for the construction, reconstruction, or rehabilitation of housing units by them, not in excess of one hundred per cent of the cost of such construction, reconstruction, or rehabilitation. The agency shall provide in its rules and regulations concerning such loans that the amount of the loan, the method of making payments thereafter, the security afforded and interest rates, fees and charges to be paid shall at all times be sufficient to permit the agency to make the payments on its bonds and notes plus any administrative or other costs of the agency in connection with the transactions.