Public Law 85–104

Section 203 (b) (2) of the National Housing Act is

Housing Act of 1957.

Eligibility.

68 Stat. 591; 70 Stat. 1092.

12 USC 1709.

amended to read as follows:

“(2)“(2)

Involve a principal obligation (including such initial service

Principal obligation.

charges, appraisal, inspection, and other fees as the Commissioner shall approve) in an amount not to exceed $20,000 in the case of property upon which there is located a dwelling designed principally (whether or not it may be intended to be rented temporarily for school purposes) for a one-or two-family residence; or $27,500 in the case of a three-family residence; or $35,000 in the case of a four-family residence: and not to exceed an amount equal to the sum of (i) 97 per centum (but, in any case where the dwelling is not approved for mortgage insurance prior to the beginning of construction, unless the construction of the dwelling was completed more than one year prior to the application for mortgage insurance, 90 per centum) of $10,000 of the appraised value of the property, as of the date the mortgage is accepted for insurance, (ii) 85 per centum of such value in excess of $10j000 but not in excess of $16,000, and (iii) 70 per centum of such value in excess of $16,000.”.

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Section 203 (b) of such Act is further amended by adding the

12 USC 1709.

following paragraphs at the end thereof:

“(8)“(8)

In the case of a mortgagor who is not the occupant of the property, have a principal obligation not in excess of an amount equal to 85 per centum of the amount computed under the provisions of paragraph (2) of this subsection.

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“(9)“(9)

Be executed by a mortgagor who shall have paid on account of the property at least 3 per centum, or such larger amount as the Commissioner may determine, of the Commissioner’s estimate of the cost of acquisition in cash or its equivalent: Provided, That with respect to a mortgage executed by a mortgagor who is sixty years of age or older as of the date the mortgage is endorsed for insurance or with respect to a mortgage meeting the requirements of subsection (i) of this section, the mortgagor’s payment required by this subsection may be paid by a corporation or person other than the mortgagor under such terms and conditions as the Commissioner may prescribe.”.

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Section 203 (i) of such Act is amended to read as follows:

Single family residence.

Outlying areas.

68 Stat. 592.

7 USC 1709.

“(i)“(i)

The Commissioner is authorized to insure under this section any mortgage meeting the requirements of subsection (b) of this section, except as modified by this subsection, which involves a principal obligation not in excess of $8,000 and not in excess of 97 per centum of the appraised value of a property located in an area where the Commissioner finds it is not practicable to obtain conformity with many of the requirements essential to the insurance of mortgages on housing in built-up urban areas, upon which there is located a dwelling designed principally for a single-family residence, and which is approved tor mortgage insurance prior to the beginning of construction: Provided, That if the mortgagor is not the occupant of the property at the time of insurance, the principal obligation of the mortgage shall not exceed 85 per centum of the appraised value of the property: Provided further, That the Commissioner finds that the property with respect to which the mortgage is executed is an acceptable risk, giving consideration to the need for providing adequate housing for families of low and moderate income particularly in surburban and outlying areas or small communities: Provided further, That under the foregoing provisions of this subsection the Commissioner is authorized to insure any mortgage issued with respect to the construction of a farm home on a plot of land five or more acres in size adjacent to a public highway, the total amount of insurance outstanding at any one time under this proviso not to exceed $100,000,000.”.

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Section 220 (d) (3) of the National Housing Act

Urban renewal areas.

68 Stat. 596; 70 Stat. 1094. 12 USC 1715k.

is amended by striking out all appearing before clause (B) and inserting in lieu thereof the following:

“(3)“(3)

The mortgage shall—

Mortgage limits.

68 Stat. 603.

12 USC 1715m.

Servicemen. Additional mortgages.

“(A)“(A)

(i)(i)

involve a principal obligation (including such initial service charges, appraisal, inspection, and other fees as the Commissioner shall approve) in an amount not to exceed $20,000 in the case of property upon which there is located a dwelling designed principally for a one-or two-family residence; or $27,500 in the case of a three-family residence; or $35,000 in the case of a four-family residence; or in the case of a dwelling designed principally for residential use for more than four families (but not exceeding such additional number of family units as the Commissioner may prescribe) $35,000 plus not to exceed $7,000 for each additional family unit in excess of four located on such property; and not to exceed an amount equal to the sum of (1) 97 per centum (but, in any case where the dwelling is not approved for mortgage insurance prior to the beginning of construction, unless the construction of the dwelling was completed more than one year prior to the application for mortgage insurance, 90 per centum) of $10,000 of the Commissioner’s estimate of replacement cost of the property, as of the date the mortgage is accepted for insurance, (2) 85 per centum of such replacement cost in excess of $10,000 but not in excess of $16,000, (3 ) 70 per centum of such replacement cost in excess of $16,000: Provided, That in the case of properties other than new construction, the foregoing limitations upon the amount of the mortgage shall be based upon appraised value rather than upon the Commissioner’s estimate of the replacement cost;

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“(ii)“(ii)

in the case of a mortgagor who is not the occupant of the property, have a principal obligation not in excess of an amount equal to 85 per centum of the amount computed under the provisions of clause (i); or”.

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Section 220 (d) (3) of such Act is further amended by striking out the phrase “not to exceed” the first four places it appears in clause (B ) and inserting in lieu thereof the phrase “not exceed”.

The second sentence of section 204 (d) of the National

12 USC 1710.

Housing Act is amended by striking out “determined by the Commissioner, with the approval of the Secretary of the Treasury, at the time the mortgage was offered for insurance, but not to exceed 3 per centum per annum” and by inserting in lieu thereof “established by the Commissioner pursuant to section 224”.

The second sentence of section 207 (i) of such Act is amended

Rental housing.

12 USC 1713.

by striking out “determined by the Commissioner, with the approval of the Secretary of the Treasury, at the time the mortgage was insured, but not to exceed 3 per centum per annum” and by inserting in lieu thereof “established by the Commissioner pursuant to section”.

The second sentence of section 803 (f) of such Act is amended

Military housing.

12 USC 1748b.

by striking out “determined by the Commissioner with the approval of the Secretary of the Treasury, at the time the mortgage was accepted for insurance but not to exceed 3 per centum per annum” and by inserting in lieu thereof “established by the Commissioner pursuant to section 224”.

by striking out “or 213” each place it appears (except in the second proviso in paragraph (7)) and inserting in lieu thereof “213, or 222”;

by inserting after “prescribed by” in paragraph (4) the following: “this Act or”; and

by striking out the second proviso in paragraph (7) and inserting in lieu thereof the following: “: Provided further, That a mortgage of the character described in paragraphs (1) through (6) of this subsection shall have a maturity, a principal obligation, and an interest rate not in excess of the maximums applicable to loans insured under section 203, 207, 213, or 222, as the case may be, except that in no case may the principal obligation of a mortgage referred to in paragraph (5) of this subsection exceed 90 per centum of the appraised value of the mortgaged property”.

The second sentence of section 303 (d) of the National

12 USC 1718.

Housing Act is amended by striking out “$50,000,000” and inserting in lieu thereof “$115,000,000”.

The second sentence of section 303 (e) of such Act is amended by striking out “$50,000,000” and inserting in lieu thereof “$115,000,000”.

The second sentence of section 305 (b) of the National

12 USC 1720.

Prices.

Housing Act is amended to read as follows: “Notwithstanding any other provision of this section, the price to be paid by the Association for mortgages purchased in its operations under this section, until the close of August 7, 1958, shall be not less than the unpaid principal amount thereof at the time of purchase, with adjustments for interest and any comparable items.”.

Section 305 (b) of such Act is further amended by striking out

Fees.

the third sentence and inserting in lieu thereof the following: “The Association shall impose charges or fees for its services under this section, in an amount not to exceed 1½ per centum of the unpaid principal amount of any mortgage for its commitment and its purchase of such mortgage, with the objective that all costs and expenses of its operations under this section should be within its income derived from such operations and that such operations should be fully self-supporting. Not more than one-half of the charges or fees imposed under the preceding sentence with respect to any mortgage shall be collected at the time of the issuance of the commitment with respect to such mortgage, and the balance of such charge or fee shall be collected at the time of the purchase of the mortgage.”.

striking out the second sentence of section 103 (a) and inserting in lieu thereof the following: “The aggregate of such capital grants with respect to all the projects of a local public agency on which contracts for capital grants have been made under this title, exclusive of projects referred to in the proviso hereto, shall not exceed two-thirds of the aggregate of the net project costs of such nonexcluded projects: Provided, That the aggregate of such capital grants may exceed two-thirds but not three-fourths of the aggregate net project costs of those projects which the Administrator, at the request of a local public agency, may approve on such a three-fourths capital grant basis. A capital grant with respect to any individual project shall not exceed the difference between the net project cost and the local grants-in-aid actually made with respect to the project.”;

inserting before the period at the end of section 104 the

Local grants-in-aid.

Requirements.

70 Stat. 1101.

42 USC 1454.

following: “on the two-thirds basis, or in excess of one-fourth of the aggregate net project costs of all projects of the local public agency on which contracts for capital grants have been made on the three-fourths basis”;

inserting before the first semicolon in section 110 (d) the

42 USC 1460.

words “to defray expenditures within the purview of section 110 (e) (1) hereof”;

inserting before the period at the end of the first sentence

Gross project coat.

of section 110 (e) a colon and the following: “Provided, That with respect to a project for which a contract for capital grant has been executed on a three-fourths basis pursuant to the proviso in the second sentence of section 103 (a), gross project cost shall include, in lieu of the amount specified in clause (1), the amount of the expenditures by the local public agency with respect to the following undertakings and activities necessary to carry out such project:

“(i)“(i)

acquisition of land (but only to the extent of the consideration paid to the owner and not title, appraisal, negotiating, legal, or any other expenditures of the local public agency incidental to acquiring land), disposition of land, demolition and removal of buildings and improvements, and site preparation and improvements, all as provided in paragraphs (1), (2), (3), (4), and (6) of section 110 (c); and

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“(ii)“(ii)

the payment of carrying charges related to the undertakings in clause (i), exclusive of taxes and payments in lieu of taxes, but not beyond the point where such a project is completed;

but not the cost of any other undertakings and activities (including, but without being limited to, the cost of surveys and plans, legal services of any kind, and all administrative and overhead expenses of the local public agency) with respect to such project”; and

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inserting within the parentheses in the second sentence of section 110 (e) after the words “or is hereafter executed” the following: “, other than a project on which a contract for capital grant is made on a three-fourths basis pursuant to the proviso in the second sentence of section 103 (a)”.

In order to enable low-rent housing to serve more

Eligibility.

effectively the needs of large families of low income, the United States Housing Act of 1937 is amended by striking out the second

50 Stat. 588.

42 USC 1402.

and third sentences of paragraph (1) of section 2, and inserting in lieu thereof the following: “The dwellings in low-rent housing as defined in this Act shall be available solely for families whose net annual income at the time of admission, less an exemption of (a) $100 for each adult dependent member of the family having no income and for each minor (other than the head of the family and his spouse), and (b) not to exceed $600 of the income of each member of the family other than the principal wage earner, does not exceed five times the annual rental (including the value or cost to them of water, electricity, gas, other heating and cooking fuels, and other utilities) of the dwellings to be furnished such families. For the sole purpose

Continued occupancy.

of determining eligibility for continued occupancy, a public housing agency may allow, from the net annual income of any family, an exemption (a) for each minor member of the family (other than the head of the family and his spouse) of either $100 or all or any part of the income of such minor, and (b) of $100 for each adult dependent member of the family having no income, and (c) not to exceed $600 of the income of any other member of the family other than the principal wage earner.”.

Section 15 (5) of the United States Housing Act of 1937 is

Dwelling-unit costs.

42 USC 1415.

amended by striking out “$1,750” and inserting in lieu thereof “$2,000”, and by striking out “$2,250”.

Section 15 (5) of the United States Housing Act of 1937 is amended by adding at the end thereof a new sentence as follows:

Contracts.

“Every contract made pursuant to this Act for loans, annual contributions, or capital grants, with respect to a project for which the preparation of plans, drawings, and specifications has not been started or contracted for prior to the date of enactment of the Housing Act of 1957, shall require that such plans, drawings, and specifications follow the principle of modular measure in every case deemed feasible by the public housing agency, in order that the housing may be built by conventional construction, on-site fabrication, factory pre-cutting, factory fabrication, or any combination of these construction methods.”.

Notwithstanding the provisions of section 614 of the

Wethersfield, Conn.

Act entitled “An Act to expedite the provision of housing in connection with national defense, and for other purposes”, approved October

70 Stat. 1107.

42 USC 1589d.

14, 1940, as amended (42 U. S. C. 1521, and the following), the Housing and Home Finance Administrator is authorized to sell and convey war housing project CONN–6029 to the housing authority of the town of Wethersfield, Connecticut, pursuant to the provisions of section

68 Stat. 646.

810 of the Housing Act of 1954, as amended, until midnight of December 1, 1957.

Notwithstanding any other provision of law, the Housing and

Kelso Turner, Las Vegas, Nev.

Home Finance Administrator is authorized and directed to sell and convey to the Housing Authority of the city of Las Vegas, Nevada, for a total price of $452,200, all of the right, title, and interest of the United States in and to the housing project known as Kelso-Turner (NEV–26021) located in the city of Las Vegas, Nevada. Five per centum of the purchase price shall be paid at the time of closing and I he balance of the purchase price shall be secured by a mortgage and shall be paid in equal annual installments within twenty years from the date of sale with the right of prepayment of all or any part thereof. The unpaid balances shall bear interest at the rate of 4% per centum per annum. The Administrator may impose such other terms and conditions as he may deem necessary or desirable. The Administrator shall make no payments in lieu of taxes with respect to the project authorized to be conveyed hereunder for any tax year or portion thereof subsequent to the date of sale. Any sale pursuant to this authorization shall be made within three months after the date of enactment of this Act.

Notwithstanding any other provision of law, the Housing and

Layton, Utah.

Home Finance Administrator is authorized and directed to sell and convey to the city of Layton, Utah, for a total purchase price of $580,000, all of the right, title, and interest of the United States in and to the housing project known as Verdeland Park (UTAH–42015) located in the city of Layton, Utah. The purchase price shall be secured by a mortgage which need not be a general obligation of the city, and shall be paid in equal annual installments within ten years from the date of sale with the right of prepayment of all or any Dart thereof. No down-payment shall be required, and the unpaid balances shall bear interest at the rate of 4% per centum per annum. The Administrator may impose such other terms and conditions as he may deem necessary or desirable. The Administrator shall make no payments in lieu of taxes with respect to the project authorized to be conveyed hereunder for any tax year or portion thereof subsequent to the date of sale. The provisions of this subsection shall be effective only if the conveyance is made within ninety days after the date of the approval of this Act.

Section 401 (d) of the Housing Act of 1950 is amended

70 Stat. 1113.

12 USC 1749.

Issuance of notes, etc.

by striking out “$750,000,000” and inserting in lieu thereof “$925,000,000”, and by inserting before the period at the end thereof a colon and the following: “Provided further, That the amount outstanding for hospitals, referred to in clause (2) of section 404 (b) of this title, shall not exceed $25,000,000”.

Section 404 (b) of such Act is amended to read as follows:

12 USC 1749c.

“(b)“(b)

‘Educational institution’

“Educational institution.”

means (1) any educational institution offering at least a two-year program acceptable for full credit toward a baccalaureate degree, including any public educational institution, or any private educational institution no part of the net earnings of which inures to the benefit of any private shareholder or individual, (2) any hospital operating a school of nursing beyond the level of high school approved by the appropriate Stat. authority, or any hospital approved for internships by recognized authority, if such hospital is either a public hospital or a private hospital, no part of the net earnings of which inures to the benefit of any private shareholder or individual, (3) any corporation (no part of the net earnings of which inures to the benefit of any private shareholder or individual ) (A) established by any institution included in clause (1) of this subsection for the sole purpose of providing housing or other educational facilities for students or students and faculty of such institution without regard to their membership in or affiliation with any social, fraternal, or honorary society or organization, and (B) upon dissolution of which all title to any property purchased or built from the proceeds of any loan secured under this title will pass to such institution, and (4) any agency, public authority, or other instrumentality of any Stat. established for the purpose of providing or financing housing or other educational facilities for students or faculty of any public educational institution included in clause (1) of this subsection, but nothing herein contained shall require an institution included in clause (1) of this subsection to obtain loans through any instrumentality included in this clause of this subsection.”.

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The Housing and Home Finance Administrator is authorized and directed to undertake and carry out a program, in the manner provided in subsection (b), for the study of farm housing in the United States. Such program shall be designed to assist in the improvement of farm housing conditions in the United States by developing data and information on—

The research, study, and analysis required to carry out the program described in subsection (a) shall be conducted by land-grant colleges established pursuant to the Act of July 2, 1862 (7 U. S. C., secs. 301–308), and such research, study, and analysis shall be financed

12 Stat. 503.

with grants made to such colleges by the Housing and Home Finance Administrator on such terms, conditions, and standards as may be specified in regulations prescribed by him.

The authority of the Housing and Home Finance Administrator

Expiration date.

to make grants under subsection (h) shall expire June 30, 1959; and the total amount of such grants shall not exceed $300,000 during either of the fiscal years ending June 30, 1958, and June 30, 1959.

There are authorized to be appropriated such sums as may be

Appropriation.

necessary to carry out this section.