§ 1715x. Experimental housing insurance

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1934

   Housing Act of 1961

   Pub. L. 87–70 title I § 103 · 75 Stat. 149

   Enacted · 12 U.S.C. § 1715x

   June 27, 1934, ch. 847, title II, § 233, as added Pub. L. 87–70, title I, § 103, June 30, 1961, 75 Stat. 158

   Source evidence

   Code source credit
   June 27, 1934, ch. 847, title II, § 233, as added Pub. L. 87–70, title I, § 103, June 30, 1961, 75 Stat. 158

   Enacted provision · exact public law section
   Sec. 103. experimental housing mortgage insurance Title II of the National Housing Act is amended by adding at the end thereof the following section: “Sec. 233. “experimental housing (a) In order to assist in lowering housing costs and improving housing standards, quality, livability, or durability or neighborhood design through the utilization of advanced housing technology, or experimental property standards, the Commissioner is authorized to insure and to make commitments to insure, under this section, mortgages (including, in the case of mortgages insured under subsection (b)(2) of this section, advances on such mortgages during construction) secured by properties including dwellings involving the utilization and testing of advanced technology in housing design, materials, or construction, or experimental property standards for neighborhood design if the Commissioner determines that (1) the property is an acceptable risk, giving consideration to the need for testing advanced housing technology or experimental property stand-ards, (2) the utilization and testing of the advanced technology or experimental property standards involved will provide data or experience which the Commissioner deems to be significant in reducing housing costs or improving housing standards, quality, livability, or durability, or improving neighborhood design, and (3) the mortgages are eligible for insurance under the provisions of this section and under any further terms and conditions which may be prescribed by the Commissioner to establish the acceptability of the mortgages for insurance. “(b) To be eligible for insurance under this section a mortgage Eligibility. shall— “(1) meet the requirements of section 203(b), except that the 12 USC 1709. maximum principal obligation of the mortgage as computed under clauses (i), (ii), and (iii) of section 203(b)(2) shall be determined on the basis of the Commissioner’s estimate of the cost of replacing the property using comparable conventional design, materials, and construction rather than value, and the proviso in section 203(b)(8) shall not be applicable to mortgages insured under this section; or “(2) meet the requirements of section 207(b) and section 207 12 USC 1713. (c), except that the maximum principal obligation of the mortgage as computed under section 207(c)(2) shall be determined on the basis of the Commissioner’s estimate of the cost of replacing the property using comparable conventional design, materials, and construction rather than value. “(c) The Commissioner may enter into such contracts, agreements, and financial undertakings with the mortgagor and others as he deems necessary or desirable to carry out the purposes of this section, and may expend available funds for such purposes, including the correction (when he determines it necessary to protect the occupants), at any time subsequent to insurance of a mortgage, of defects or failures in the dwellings which the Commissioner finds are caused by or related to the advanced housing technology utilized in their design or construction or experimental property standards. “(d) The Commissioner may make such investigations and analyses of data, and publish and distribute such reports, as he determines to be necessary or desirable to assure the most beneficial use of the data and information to be acquired as a result of this section. “(e) Any mortgagee under a mortgage insured under subsection (b)(1) of this section shall be entitled to the benefits of the insurance as provided in section 204(a) with respect to mortgages insured under 12 USC 1710. section 203, and the provisions of subsections (b), (c), (d), (e), (f), (g), (h), (j), and (k) of section 204 shall apply to the mortgages insured under subsection (b)(1), except that as applied to those mortgages (1) all references therein to the Mutual Mortgage Insurance Fund or the Fund shall be construed to refer to the Experimental Housing Insurance Fund, and (2) all references therein to section 203 shall be construed to refer to this section. “(f) Any mortgagee under a mortgage insured under subsection (b)(2) of this section shall be entitled to the benefits of the insurance as provided in section 207(g) with respect to mortgages insured under section 207, and the provisions of subsections (d), (e), (h), (i), (j), (k), (l), (m), (n), and (p) of section 207 shall apply to the mortgages insured under subsection (b)(2) of this section, except that as applied to those mortgages (1) all references therein to the Housing Insurance Fund, the Housing Fund, or the Fund shall be construed to refer to the Experimental Housing Insurance Fund, and (2) all references therein to ‘this section’ shall be construed to refer to this section 233. “(g) Notwithstanding the provisions of subsections (e) and (f) of this section, in the case of default on any mortgage insured under this section, the Commissioner in his discretion, in accordance with such regulations as he may prescribe, may make payments pursuant to such subsections in cash or in debentures (as provided in the mortgage insurance contract), or may acquire the mortgage loan and the security therefor upon payment to the mortgagee in cash or in debentures (as provided in the mortgage insurance contract) of a total amount equal to the unpaid principal balance of the loan plus any accrued interest and any advances approved by the Commissioner made previously by the mortgagee under the provisions of the mortgage. After the acquisition of the mortgage by the Commissioner the mortgagee shall have no further rights, liabilities, or obligations with respect to the mortgage. The appropriate provisions of sections 204 and 207 relating to the issuance of debentures shall apply with respect to debentures issued under this subsection, and the appropriate provisions 12 USC 1710, 1713. of sections 204 and 207 relating to the rights, liabilities, and obligations of a mortgagee shall apply with respect to the Commissioner when he has acquired an insured mortgage under this subsection, in accordance with and subject to regulations (modifying such provisions to the extent necessary to render their application for such purposes appropriate and effective) which shall be prescribed by the Commissioner, except that as applied to mortgages insured under this section (1) all references in section 204 to the Mutual Mortgage Insurance Fund or the Fund shall be construed to refer to the Experimental Housing Insurance Fund, (2) all references in section 204 to section 203 shall be construed to refer to this section, and (3) all references in section 207 to the Housing Insurance Fund, the Housing Fund, or the Fund shall be construed to refer to the Experimental Housing Insurance Fund. “(h) There is hereby created an Experimental Housing Insurance Fund to be used by the Commissioner as a revolving fund to carry out the provisions of this section, and the Commissioner is directed to transfer the sum of $1,000,000 to the Fund from the War Housing 12 USC 1737. Insurance Fund created by section 602 of this Act. General expenses of operation of the Federal Housing Administration and other expenses incurred under this section may be charged to the Experimental Housing Insurance Fund.”

2. 1964

   Housing Act of 1964

   Pub. L. 88–560 § 118(a) · 78 Stat. 769

   Substituted · 12 U.S.C. § 1715x(a)

   Pub. L. 88–560, § 118(a), substituted “home improvement loans, and including advances on mortgages” for “, in the case of mortgages insured under subsection (b)(2) of this section, advances on such mortgages”

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 88–560, § 118(a), substituted “home improvement loans, and including advances on mortgages” for “, in the case of mortgages insured under subsection (b)(2) of this section, advances on such mortgages”.

   Enacted provision · exact public law section
   (a) Section 233(a) of the National Housing Act is 75 stat. 158. 12 USC 17l5x. amended by striking out “, in the case of mortgages insured under subsection (b) (2) of this section, advances on such mortgages” and inserting in lieu thereof “home improvement loans, and including advances on mortgages”.

3. 1964

   Housing Act of 1964

   Pub. L. 88–560 § 118(b) · 78 Stat. 769

   Substituted · 12 U.S.C. § 1715x(b)

   Pub. L. 88–560, § 118(b), substituted provisions which make insurance available for mortgages meeting the requirements of any other sections of subchapter II of this chapter for provisions which made insurance available for mortgages meeting the requirements of section 1709(b) or 1713(b), (c) of this title and made the Commissioner’s estimate of replacement cost of the property applicable to mortgages meeting the requirements of any section of subchapter II of this chapter in lieu of determining the appraised value or the replacement cost of the property in new construction or estimated cost of repair and rehabilitation or improvement for existing properties

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 88–560, § 118(b), substituted provisions which make insurance available for mortgages meeting the requirements of any other sections of subchapter II of this chapter for provisions which made insurance available for mortgages meeting the requirements of section 1709(b) or 1713(b), (c) of this title and made the Commissioner’s estimate of replacement cost of the property applicable to mortgages meeting the requirements of any section of subchapter II of this chapter in lieu of determining the appraised value or the replacement cost of the property in new construction or estimated cost of repair and rehabilitation or improvement for existing properties.

   Enacted provision · exact public law section
   (b) Section 233(b) of such Act is amended to read as follows: “(b) To be eligible for insurance under this section, a mortgage shall meet the requirements of one of the other sections of this title; except that, in lieu of determining the appraised value or the replacement cost of the property in cases involving new construction or the estimated cost of repair and rehabilitation or improvement in cases involving existing properties, the Commissioner shall estimate the cost of replacing the property using comparable conventional design, materials, and construction, and any limitation upon the maximum mortgage amount available to a nonoccupant owner shall not, in the discretion of the Commissioner, be applicable to mortgages insured under this section.”

4. 1964

   Housing Act of 1964

   Pub. L. 88–560 § 118(c) · 78 Stat. 769

   Substituted · 12 U.S.C. § 1715x(e)

   Pub. L. 88–560, § 118(c), substituted provision for entitlement to insurance benefits determined in the same manner as such benefits would be determined if such mortgage or loan were insured under the section of this subchapter for which it otherwise would have been eligible except for the experimental feature of the property involved for former provision for entitlement to insurance benefits provided in section 1710(a) of this title

   Source evidence

   Code amendment note
   Subsec. (e). Pub. L. 88–560, § 118(c), substituted provision for entitlement to insurance benefits determined in the same manner as such benefits would be determined if such mortgage or loan were insured under the section of this subchapter for which it otherwise would have been eligible except for the experimental feature of the property involved for former provision for entitlement to insurance benefits provided in section 1710(a) of this title.

   Enacted provision · exact public law section
   (c) Section 233 of such Act is further amended by striking out subsections (e) and (f) and inserting in lieu thereof the following: “(e) Any mortgagee or lender under a mortgage insured under subsection (b) shall be entitled to insurance benefits determined in the same manner as such benefits would be determined if such mortgage or loan were insured under the section of this title for which it otherwise would have been eligible except for the experimental feature of the property involved.”

5. 1964

   Housing Act of 1964

   Pub. L. 88–560 title I · 78 Stat. 769

   1. Added · 12 U.S.C. § 1715x(f)

      Pub. L. 88–560, §§ 105(c)(1), 118(c), (d), added to subsec. (g)

   2. Redesignated · 12 U.S.C. § 1715x(f)

      Pub. L. 88–560, §§ 105(c)(1), 118(c), (d), redesignated (f), provision that “If the insurance payment is made in cash, there shall be added to such payment an amount equivalent to the interest which the debentures would have earned, computed to a date to be established pursuant to regulations issued by the Commissioner”, deleted former provisions of subsec. (f) which related to entitlement to insurance benefits provided in section 1713(g) of this title, now covered by subsec. (e) of this section

   3. Redesignated · 12 U.S.C. § 1715x(f)

      Pub. L. 88–560, §§ 105(c)(1), 118(c), (d), redesignated former subsec. (g) as (f)

   4. Substituted · 12 U.S.C. § 1715x(f)

      Pub. L. 88–560, §§ 105(c)(1), 118(c), (d), substituting in first sentence “subsection (e)” for “subsections (e) and (f)”, respectively

   Source evidence

   Code amendment note
   Subsec. (f). Pub. L. 88–560, §§ 105(c)(1), 118(c), (d), added to subsec. (g), redesignated (f), provision that “If the insurance payment is made in cash, there shall be added to such payment an amount equivalent to the interest which the debentures would have earned, computed to a date to be established pursuant to regulations issued by the Commissioner”, deleted former provisions of subsec. (f) which related to entitlement to insurance benefits provided in section 1713(g) of this title, now covered by subsec. (e) of this section, and redesignated former subsec. (g) as (f), substituting in first sentence “subsection (e)” for “subsections (e) and (f)”, respectively.

   Enacted provision · exact public law
   TITLE I— AMENDMENTS TO THE NATIONAL HOUSING ACT Sec. 101. time limit on fha recoupment of title i insurance payments Section 2(g) of the National Housing Act is amended by 71 stat. 297. 12 USC 1703. striking out “after December 31, 1957,”. Sec. 102. mortgage limits for homes under section 203 programs (a) Section 203(b)(2) of the National Housing Act is 12 USC 1709. amended by striking out “$25, 000”, “$27, 500”, “$27, 500”, and “$35, 000” and inserting in lieu thereof “$30, 000”, “$32, 500”, “$32, 500”, and “$37, 500”, respectively. (b) Section 203(i) of such Act is amended by striking out “$9, 000” and inserting in lieu thereof “$11, 000”. Sec. 103. home improvement loans outside of urban renewal areas Section 203(k) of the National Housing Act is amended 75 stat. 157. 12 USC 1709. by— (1) striking out in clause (2) “economically sound” and inserting in lieu thereof “an acceptable risk”; (2) striking out clause (4) and inserting in lieu thereof the following: “(4) insurance benefits shall be paid in cash out of the Section 203 Home Improvement Account or in debentures executed in the name of such Account”; and (3) striking out in the third sentence “Debentures issued with respect to loans insured under this subsection shall be issued” and inserting in lieu thereof “Insurance benefits paid with respect to loans insured under this subsection shall be paid”. Sec. 104. additional relief for home mortgagors in default due to circumstances beyond their control (a) Section 204(a) of the National Housing Act is 73 stat. 662. 12 USC 1710. amended by striking out the fourth proviso and inserting in lien thereof the following: And provided further, That with respect to any mortgage covering a one-, two-, three-, or four-family residence insured under this Act, if the Commissioner finds, after notice of default, that the default was due to circumstances beyond the control of the mortgagor, he may, upon such terms and conditions as he may prescribe, (1) approve the request of the mortgagee for an extension of the time for the curing of the default and of the time for commencing foreclosure proceedings or for otherwise acquiring title to the mortgaged property to such time as the Commissioner may determine is necessary and desirable to enable the mortgagor to complete the mortgage payments, including an extension of time beyond the stated maturity of the mortgage, and in the event of a subsequent foreclosure or acquisition of the property by other means the Commissioner is authorized to include in the debentures an amount equal to any unpaid mortgage interest, or (2) approve a modification of the terms of the mortgage for the purpose of changing the amortization provisions by recasting, over the remaining term of the mortgage or over such longer period as may be approved by the Commissioner, the total unpaid amount then due, as determined by the Commissioner, with the modification to become effective currently or to become effective upon the termination of an agreed-upon extension of the period for curing the default; and the principal amount of the mortgage, as modified, shall be considered to be the ‘original principal obligation of the mortgage’ as that term is used in this Act for the purpose of computing the total face value of the debentures to be issued or the cash payment to be made by the Commissioner to a mortgagee” (b) Section 230 of such Act is amended by striking out the first sentence and inserting in lieu thereof the following: “Upon receiving notice of the default of any mortgage covering a one-, two-, three-, or four-family residence heretofore or hereafter insured under this Act, the Commissioner, in his discretion and for the purpose of avoiding foreclosure of the mortgage, and notwithstanding the fact that he has previously approved a request of the mortgagee for an extension of the time for curing the default and of the time for commencing fore-closure proceedings or for otherwise acquiring title to the mortgaged property, or has approved a modification of the mortgage for the purpose of changing the amortization provisions by recasting the unpaid balance, may acquire the loan and security therefor upon payment of the insurance benefits in an amount equal to the unpaid principal balance of the loan plus any unpaid mortgage interest plus reimbursement for such costs and attorney’s fees as the Commissioner finds were properly incurred in connection with the defaulted mortgage and its assignment to the Commissioner, and for any proper advances theretofore made by the mortgagee under the provisions of the mortgage. After the acquisition of such mortgage by the Commissioner, the mortgagee shall have no further rights, liabilities, or obligations with respect thereto.” Sec. 105. changes in fha insurance benefits and simplification of payment procedures (a) Section 204 of the National Housing Act is amended by— (1) striking out in the third sentence of subsection (a) the words “insurance on the mortgaged property, and any mortgage insurance premiums paid after either of such dates” and inserting in lieu thereof the following: “charges for the administration, operation, maintenance and repair of comm unity-owned property or the maintenance and repair of the mortgaged property, the obligation for which arises out of a covenant filed for record and approved by the Commissioner prior to the insurance of the mortgage, insurance on the mortgaged property, and any mortgage insurance premiums”; (2) inserting after the colon following the second proviso of subsection (a) two additional provisos as follows: “And provided further, That with respect to a mortgage accepted for insurance pursuant to a commitment issued on or after the date of enactment of the Housing Act of 1964, the Commissioner may include in debentures or in the cash payment an amount not to exceed the foreclosure, acquisition, and conveyance costs actually paid by the mortgagee and approved by the Commissioner: And provided, further, That with respect to a mortgage accepted for insurance pursuant to a commitment issued prior to the date of enactment of the Housing Act of 1964, the Commissioner may, with the consent of the mortgagee (in lieu of issuing a certificate of claim as provided in subsection (e)), include in debentures or in the cash payment, in addition to amounts otherwise allowed for such costs? an amount not to exceed one-third of the total foreclosure, acquisition, and conveyance costs actually paid by the mortgagee and approved by the Commissioner, but in no event may the total allowance for such costs exceed the amount actually paid by the mortgagee;” (3) striking out “and the payment of insurance premiums” in 12 USC 1710. the third proviso in subsection (a) (as numbered prior to the amendment made by paragraph (2)), and by inserting before the colon at the end of such proviso the following: “: And provided further, That where the claim is paid in cash there shall be included in the cash payment an amount equivalent to the compensation for loss of debenture interest that would be included in computing debentures if such claim were being paid in debentures”; (4) striking out “$50” in the second sentence of subsection (c) and inserting m lieu thereof “$350”; (5) striking out in the second sentence of subsection (d) “, except 75 stat. 180. that debentures issued pursuant to the provisions of section 220(f), section 221(g), and section 233 may be dated as of the 12 USC 1715k, 1715l, 1715x. date the mortgage is assigned (or the property is conveyed) to the Commissioner, and” and inserting in lieu thereof “Provided, That debentures issued pursuant to claims for insurance filed on or after the date of enactment of the Housing Act of 1964 shall be dated as of the date of default or as of such later date as the Commissioner, in his discretion, may establish by regulation. The debentures”; (6) (A) inserting “(1)” after “(e)” in subsection (e); striking 52 stat. 14. 12 USC 1710. out “The certificate” in such subsection and inserting in lieu thereof “Subject to paragraph (2), the certificate”; and adding at the end of such subsection a new paragraph as follows: “(2) A certificate of claim shall not be issued and the provisions of paragraph (1) of this subsection shall not be applicable in the case of a mortgage accepted for insurance pursuant to a commitment issued on or after the date of enactment of the Housing Act of 1964.”; (B) striking out “and a certificate of claim” in the second sentence of subsection (a) and inserting in lieu thereof “and (subject to subsection (e) (2)) a certificate of claim”: (7) striking out the first paragraph of subsection (f) and inserting in lieu thereof the following: “(f) (1) If, after deducting (in such manner and amount as the Commissioner shall determine to be equitable and in accordance with sound accounting practice) the expenses incurred by the Commissioner, the net amount realized from any property conveyed to the Commissioner under this section and the claims assigned therewith exceed the face value of the debentures issued and the cash paid in exchange for such property plus all interest paid on such debentures, such excess shall be divided as follows:”; (8) redesignating the second paragraph of subsection (f) as paragraph (i), and striking out “207; and” at the end of the paragraph and inserting in lieu thereof the following: “207: Provided, That on and after the date of enactment of the Housing Act of 1964, any excess remaining after payment to the holder of the full amount of the certificate of claim, together with the accrued interest increment thereon, shall be retained by the Commissioner and credited to the applicable insurance fund; and”; (9) redesignating the third paragraph of subsection (f) as paragraph (ii); (10) designating the last paragraph of subsection (f) as paragraph (2) and inserting the following before the period at the end thereof: “: Provided, That the settlement authority created by the 69 stat. 635. 12 USC 1426 note. Housing Amendments of 1955 shall be terminated with respect to any certificates of claim outstanding as of the date of enactment of the Housing Act of 1964”; and (11) inserting at the end of subsection (f) a new paragraph as follows: “(3) With the consent of the holder thereof, the Commissioner is authorized, without awaiting the final liquidation of the Commissioner’s interest in the property, to settle any certificate of claim issued pursuant to subsection (e), with respect to which settlement had not been effected prior to the date of enactment of the Housing Act of 1964, by making payment in cash to the holder thereof of such amount not exceeding the face amount of the certificate of claim, together with the accrued interest thereon, as the Commissioner may consider appropriate: Provided, That in any case where the certificate of claim is settled in accordance with the provisions of this paragraph, any amounts realized after the date of enactment of the Housing Act of 1964, in the liquidation of the Commissioner’s interest in the property, shall be retained by the Commissioner and credited to the applicable insurance fund.” (b) Section 207(g) of such Act is amended by adding at the end thereof the following: “Notwithstanding any other provision of this Act, upon receipt, after the date of enactment of the Housing Act of 1964, of an application for insurance benefits on a mortgage insured under this Act, the Commissioner may terminate the mortgagee’s obligation to pay premium charges on the mortgage.” (c) (1) Sections 203(k), 220(f) (3), 220(h) (6), and 233(g) of such 12 USC 1709, 1715k, 1715x. Act are each amended by adding at the end thereof the following: “If the insurance payment is made in cash, there shall be added to such payment an amount equivalent to the interest which the debentures would have earned, computed to a date to be established pursuant to regulations issued by the Commissioner.” (2) Section 221(g)(3) of such Act is amended by striking out “; or” at the end thereof and inserting in lieu thereof a period and the following: “If the insurance is paid in cash, there shall be added to such payment an amount equivalent to the interest which the debentures would have earned, computed to a date to be established pursuant to regulations issued by the Commissioner.” (d) Section 604 of the National Housing Act is amended by— (1) inserting after the colon following the first proviso in subsection (a) an additional proviso as follows: “Provided further, That with respect to any debentures issued on or after the date of enactment of the Housing Act of 1964, the Commissioner may, with the consent of the mortgagee (in lieu of issuing a certificate of claim as provided in subsection (e)), include in debentures, in addition to amounts otherwise allowed for such costs, an amount not to exceed one-third of the total foreclosure, acquisition, and conveyance costs actually paid by the mortgagee and approved by the Commissioner, but in no event may the total allowance for such costs exceed the amount actually paid by the mortgagee:”; (2) striking out “$50” in the. second sentence of subsection (c) and inserting in lieu thereof “$350”; (3) striking out “default, and” in the second sentence of subsection (d) and inserting in lieu thereof the following: “default, except that debentures issued pursuant to claims for insurance filed on or after the date of enactment of the Housing Act of 1964, shall be dated as of the date of default or as of such later date as the Commissioner, in his discretion, may establish by regulation. The debentures”; (4) striking out the first paragraph of subsection (f) and 55 stat. 60. 12 USC 1739. inserting in lieu thereof the following: “(f) (1) If, after deducting (in such manner and amount as the Commissioner shall determine to be equitable and in accordance with sound accounting practice.) the expenses incurred by the Commissioner, the net amount realized from any property conveyed to the Commissioner under this section and the claims assigned therewith exceed the face value of the debentures issued and the cash paid in exchange for such property plus all interest paid on such debentures, such excess shall be divided as follows:”; (5) redesignating the second paragraph of subsection (f) as paragraph (i), and striking out “property; and” at the end of the paragraph and inserting in lieu thereof the following: “property: Provided, That on and after the date of enactment of the Housing Act of 1964, any excess remaining after payment to the holder of the full amount of the certificate of claim shall be retained by the Commissioner and credited to the War Housing Insurance Fund; and”; (6) redesignating the third paragraph of subsection (f) as paragraph (ii); (7) designating the last paragraph of subsection (f) as paragraph (2) and inserting the following before the period at the end thereof: “: Provided, That the settlement authority created by the Housing Amendments of 1955 shall be terminated with respect 69 stat. 635. 12 USC 1426 note. to any certificate of claim outstanding as of the date of enactment of the Housing Act of 1964”: and (8) inserting at the end of subsection (f) a new paragraph as follows: “(3) With the consent of the holder thereof, the Commissioner is authorized to settle, without awaiting the final liquidation of the Commissioner’s interest in the property, any certificate of claim issued pursuant to subsection (e), with respect to which a settlement had not been effected prior to the date of enactment of the Housing Act of 1964, by making payment in cash to the holder thereof of such amount, not exceeding the face amount of the certificate of claim, together with the accrued interest increment thereon, as the Commissioner may consider appropriate: Provided, That in any case where the certificate of claim is settled in accordance with the provisions of this paragraph, any amounts realized after the date of enactment of the Housing Act of 1964, in the liquidation of the Commissioner’s interest in the property, shall be retained by the Commissioner and credited to the applicable insurance fund.” (e) Section 904 of such Act is amended by— 65 stat. 298. 12 USC 1750c. (1) inserting after the colon following the first proviso in subsection (a) an additional proviso as follows: “Provided further, That with respect to any debentures issued on or after the date of enactment of the Housing Act of 1964, the Commissioner may, with the consent of the mortgagee ( in lieu of issuing a certificate of claim as provided in subsection (e)), include in debentures, in addition to amounts otherwise allowed for such costs, an amount not to exceed one-third of the total foreclosure, acquisition, and conveyance costs actually paid by the mortgagee and approved by the Commissioner, but in no event may the total allowance for such costs exceed the amount, actually paid by the mortgagee:”; (2) striking out “$50” in the second sentence of subsection (c) and inserting in lieu thereof “$350”; and (3) striking out “default, and” in the second sentence of subsection (d) and inserting in lieu thereof the following: “default, except that debentures issued pursuant to claims for insurance tiled on or after the date of enactment of the Housing Act of 1964 shall be dated as of the date of default or as of such later date as the Commissioner, in his discretion, may establish by regulation. The debentures”. (f) Sections 604 and 904 of such Act are each amended by striking out in the third sentence of subsection (a) “paid after either of such dates”. Sec. 106. maximum amount of section 207 rental housing mortgages Section 207(c)(2) of the National Housing Act is amended by striking out all that follows the first colon and precedes “to mortgages on housing in Alaska”, and inserting in lieu thereof the following: “Provided, That this limitation shall not apply”. Sec. 107. family unit limits on fha rental housing (a) Section 207(c)(3) of the National Housing Act is amended by striking out the first paragraph and inserting in lieu thereof the following: “(3) not to exceed, for such part of the property or project as may be attributable to dwelling use (excluding exterior land improvements as defined by the Commissioner), $9, 000 per family unit without a bedroom, $12, 500 per family unit with one bedroom, $15, 000 per family unit with two bedrooms, and $18, 500 per family unit with three or more bedrooms or not to exceed $1, 800 per space or $500, 000 per mortgage for trailer courts or parks; except that as to projects to consist of elevator-type structures the Commissioner may, in his discretion, increase the dollar amount limitations per family unit to not to exceed $10, 500 per family unit without a bedroom, $15, 000 per family unit with one bedroom, $18, 000 per family unit with two bedrooms, and $22, 500 per family unit with three or more bedrooms, as the case may be, to compensate for the higher costs incident to the construction of elevator-type structures of sound standards of construction and design; and except that the Commissioner may, by regulation, increase any of the foregoing dollar amount limitations contained in this paragraph by not to exceed 45 per centum in any geographical area where he finds that cost levels so require.” (b) Section 213(b) (2) of such Act is amended by striking out all that precedes the third proviso and inserting in lieu thereof the following: “(2) not to exceed, for such part of the property or project as may be attributable to dwelling use (excluding exterior land improvements as defined by the Commissioner), $9, 000 per family unit without a bedroom, $12, 500 per family unit with one bedroom, $15, 000 per family unit with two bedrooms, and $18, 500 per family unit with three or more bedrooms, and not to exceed 97 per centum of the amount which the Commissioner estimates will be the replacement cost of the property or project when the proposed physical improvements are completed: Provided, That as to projects to consist of elevator-type structures the Commis-sioner may, in his discretion, increase the dollar amount limitations per family unit to not to exceed $10, 500 per family unit without a bedroom, $15, 000 per family unit with one bedroom, $18, 000 per family unit with two bedrooms, and $22, 500 per family unit with three or more bedrooms, as the case may be, to compensate for the higher costs incident to the construction of elevator-type structures of sound standards of construction and design: Provided further, That the Commissioner may, by regulation, increase any of the foregoing dollar amount limitations contained in this paragraph by not to exceed 45 per centum in any geographical area where he finds that cost levels so require”. (c) Section 220(d) (3) (B) (iii) of such Act is amended to read as 68 stat. 598. 12 USC 17151k. follows: “(iii) not exceed, for such part of the property or project as may be attributable to dwelling use (excluding exterior land improvements as defined by the Commissioner), $9, 000 per family unit without a bedroom, $12, 500 per family unit with one bed-room, $15, 000 per family unit with two bedrooms, and $18, 500 per family unit with three or more bedrooms; except that as to projects to consist of elevator-type structures the Commissioner may, in his discretion, increase the dollar amount limitations per family unit to not to exceed $10, 500 per family unit without a bedroom, $15, 000 per family unit with one bedroom, $18, 000 per family unit with two bedrooms, and $22, 500 per family unit with three or more bedrooms, as the case may be, to compensate for the higher costs incident to the construction of elevator-type structures of sound standards of construction and design; and except that the Commissioner may, by regulation, increase any of the foregoing dollar amount limitations contained in this clause by not to exceed 45 per centum in any geographical area where he finds that cost levels so require: Provided, That nothing contained in this subparagraph shall preclude the insurance of mortgages covering existing multifamily dwellings to be rehabilitated or reconstructed for the purposes set forth in subsection (a) of this section; and”. (d) (1) Section 221(d) (3) (ii) of such Act is amended to read as 75 stat. 150. 12 USC 1715l. follows: “(ii) not exceed, for such part of the property or project as may be attributable to dwelling use (excluding exterior land improvements as defined by the Commissioner), $8, 000 per family unit without a bedroom, $11, 250 per family unit with one bedroom, $13, 500 per family unit with two bedrooms, and $17, 000 per family unit with three or more bedrooms; except that as to projects to consist of elevator-type structures the Commissioner may, in his discretion, increase the dollar amount limitations per family unit to not to exceed $9, 500 per family unit without a bedroom, $13, 500 per family unit with one bedroom, $16, 000 per family unit with two bedrooms, and $20, 000 per family unit with three or more bedrooms, as the case may be, to compensate for the higher costs incident to the construction of elevator-type structures of sound standards of construction and design; and except that the Commissioner may, by regulation, increase any of the foregoing dollar amount limitations contained in this clause by not to exceed 45 per centum in any geographical area where he finds that cost levels so require; and” (2) Section 221(d) (4) (ii) of such Act is amended to read as follows: “(ii) not exceed, for such part of the property or project as may be attributable to dwelling use (excluding exterior land improve- ments as defined by the Commissioner), $8, 000 per family unit without a bedroom, $11, 250 per family unit with one bedroom, $13, 500 per family unit with two bedrooms, and $17, 000 per family unit with three or more bedrooms; except that as to projects to consist of elevator-type structures the Commissioner may, in his discretion, increase the dollar amount limitations per family unit to not to exceed $9, 500 per family unit without a bedroom, $13, 500 per family unit with one bedroom, $16, 000 per family unit with two bedrooms, and $20, 000 per family unit with three or more bedrooms, as the case may be, to compensate for the higher costs incident to the construction of elevator-type structures of sound standards of construction and design; and except that the Commissioner may, by regulation, increase any of the foregoing dollar amount limitations contained in this clause by not to exceed 45 per centum in any geographical area where he finds that cost levels so require;”. (e) Section 231(c)(2) of such Act is amended to read as follows: “(2) not exceed, for such part of the property or project as may be attributable to dwelling use (excluding exterior land improvements as defined by the Commissioner), $8, 000 per family unit without a bedroom, $11, 250 per family unit with one bedroom, $13, 500 per family unit with two bedrooms, and $17, 000 per family unit with three or more bedrooms; except that as to projects to consist of elevator-type structures the Commissioner may, in his discretion, increase the dollar amount limitations per family unit to not to exceed $9, 500 per family unit without a bedroom, $13, 500 per family unit with one bedroom, $16, 000 per family unit with two bedrooms, and $20, 000 per family unit with three or more bedrooms, as the case may be, to compensate for the higher costs incident to the construction of elevator-type structures of sound standards of construction and design; and except that the Commissioner may, by regulation, increase any of the foregoing dollar amount limitations contained in this paragraph by not to exceed 45 per centum in any geographical area where he finds that cost levels so require;”. (f) (1) Clause (2) in the first sentence of section 810(f) of such Act is amended by striking out “$2, 500 per room (or $9, 000 per family unit if the number of rooms in such property or project is less than four per family unit)” and inserting in lieu thereof “$9, 000 per family unit without a bedroom, $12, 500 per family unit with one bedroom, $15, 000 per family unit with two bedrooms, and $18, 500 per family unit with three or more bedrooms”. (2) The second sentence of section 810(f) of such Act is amended to read as follows: “The Commissioner may, by regulation, increase any of the foregoing dollar amount limitations contained in this paragraph by not to exceed 45 per centum in any geographical area where he finds that cost levels so require.” (g) If the Federal Housing Commissioner determines that it would be inequitable to apply the provisions of the National Housing Act as amended by this section to a project which had been submitted for his consideration prior to the date of the enactment of this Act, such provisions may be applied to such project without regard to the amendments made by this section. Sec. 108. elimination of mandatory acquisition or foreclosure within one year of multifamily project in default Section 207(k) of the National Housing Act is amended by striking out the second sentence. Sec. 109. supplementary cooperative loans under section 213 (j) (a) Section 213(j) (1) of the National Housing Act is 75 stat. 179. 12 USC 1715e. amended— (1) by striking out “or” at the end of clause (A); (2) by striking out the period at the end of clause (B) and inserting in lieu thereof “; or”; and (3) by adding at the end thereof the following new clause: “(C) Cooperative purchases and resales of memberships in order to provide necessary refinancing for resales of memberships which involve increases in equity; but in such resales by the cooperative the downpayments by the new members shall not be less than those made on the original sales of such memberships.” (b) Section 305(e) of such Act is amended by adding at the end 71 stat. 299; 73 stat. 669. 12 USC 1720. thereof the following new sentence: “Without regard to any of the limitations of this subsection except the total amount of authorizations available, the Association is authorized to enter into advance commitment contracts and purchase transactions on supplementing cooperative loans with respect to which the Federal Housing Commissioner shall have issued, pursuant to section 213(j), either a commitment to insure or a statement of eligibility; but such commitments and purchases shall be made solely where there is a management-type cooperative involved which is certified by the Federal Housing Commissioner as a consumer cooperative.” Sec. 110. mortgage limits under section 220 sales housing mortgage insurance program Section 220(d) (3) (A) (i) of the National Housing Act 12 USC 1715k. is amended by striking out “$25, 000”, “$27, 500”, “$30, 000”, “$35, 000”, and “$35, 000” and inserting in lieu thereof “$30, 000”, “$32, 500”, “$32, 500”, “$37, 500”, and “$37, 500”, respectively. Sec. 111. mortgage limits under section 220 multifamily housing mortgage insurance program Section 220(d) (3) (B) (i) of the National Housing Act 73 stat. 658. is amended by striking out “$20, 000, 000” and inserting in lieu thereof “$30, 000,000.” Sec. 112. loans to cover the cost of public improvements (a) The second sentence of section 220(h)(1) of the National Housing Act is amended to read as follows: “As used in 75 stat. 154. this subsection— “(A) the term ‘home improvement loan’ means a loan, advance of credit, or purchase of an obligation representing a loan or advance of credit made— “(i) for the purpose of financing the improvement of an existing structure (or in connection with an existing structure) which was constructed not less than ten years prior to the making of such loan, advance of credit, or purchase, and which is used or will be used primarily for residential purposes: Provided, That a home improvement loan shall include a loan, advance, or purchase with respect to the improvement of a structure which was constructed less than ten years prior to the making of such loan, advance, or purchase if the proceeds are or will be used primarily for major structural improvements, or to correct defects which were not known at the time of the completion of the structure orwhich were caused by fire, flood, windstorm, or other casualty; or “(ii) for the purpose of enabling the borrower to pay that part of the cost of the construction or installation of sidewalks, curbs, gutters, street paving, street lights, sewers, or other public improvements, adjacent to or in the vicinity of property owned by him and used primarily for residential purposes, which is assessed against him or for which he is otherwise legally liable as the owner of such property; “(B) the term ‘improvement’ means conservation, repair, restoration, rehabilitation, conversion, alteration, enlargement, or remodeling; and “(C) the term ‘financial institution’ means a lender approved by the Commissioner as eligible for insurance under section 2 or 12 USC 1703, 1709. 75 stat. 155. 12 USC 1715k. a mortgagee approved under section 203(b) (1).” (b) Section 220(n)(2)(i) of such Act is amended by inserting before the semicolon at the end thereof the following: “, and be limited as required by paragraph (11)”. (c) Section 220(h) of such Act is further amended by adding at the end thereof the following new paragraph: “(11) Notwithstanding any other provision of this Act, no home improvement loan made in whole or in part for the purpose specified in clause (A) (ii) of the second sentence of paragraph (1) shall be insured under this subsection if such loan (or the portion thereof which is attributable to such purpose), when added to the aggregate principal balance of any outstanding loans insured under this subsection or section 203 (k) which were made to the same borrower for the purpose so specified (or the portion of such aggregate balance which is attributable to such purpose), would exceed $10, 000.” Sec. 113. home improvement loans on property held under lease Section 220(h) (2) (vi) of the National Housing Act is amended by striking out “a period of not less than 50 years to run from the date of the loan” and inserting in lieu thereof “an expiration date in excess of 10 years later than the maturity date of the loan”. Sec. 114. fha section 221 housing for low- or moderate-income persons (a) Section 221(d)(3) of the National Housing Act is amended by inserting after “or association” the following: “, or other mortgagor approved by the Commissioner, and”. (b) Subsection (e) of section 221 of such Act is amended to read as follows: “(e) (1) A mortgagor which may be approved by the Commissioner as provided in subsection (d)(3) includes a mortgagor which, as a condition of obtaining insurance of the mortgage and prior to the submission of its application for such insurance, has entered into an agreement (in form and substance satisfactory to the Commissioner) with a private nonprofit corporation eligible for an insured mortgage under the provisions of subsection (d)(3), that the mortgagor will sell the project when it is completed to the corporation at the actual cost of the 12 USC 1715r. project, as certified pursuant to section 227 of this Act. The mortgagor to whom the property is sold shall be regulated or supervised by the Commissioner as provided in subsection (d) (3) to effectuate its purposes. “(2) The Commissioner may at any time, under such terms and conditions as he may prescribe, consent to the release of the mortgagor from his liability under the mortgage or the credit instrument secured thereby, or consent to the release of parts of the mortgaged property from the lien of the mortgage.” (c) Section 221(d) (3) of such Act is amended by inserting before 75 stat. 150. 12 USC 1715l. the colon at the end of the first proviso in clause (iii): “: Provided further, That in the case of any mortgagor other than a nonprofit corporation or association, cooperative (including an investor-sponsor), or public body, or a mortgagor meeting the special requirements of subsection (e) (1), the amount of the mortgage shall not exceed 90 per centum of the amount otherwise authorized under this section”. (d) The last sentence of section 221(f) of such Act is amended by striking out “July 1, 1965”, each place it appears, and inserting in lieu thereof “September 30, 1965”. Sec. 115. mortgage insurance for servicemen Section 222(b) of the National Housing Act is amended— 71 Stat. 296; 73 Stat. 661. 12 USC 1715m. 12 USC 1709, 1715l. (1) by striking out “203(b) or 203(i)” in paragraph (1) and inserting in lieu thereof “203(b), 203(i), or 221(a) (2),”; and (2) by striking out “such principal obligation shall not exceed $9, 000” in paragraph (2) and inserting in lieu thereof “or section 221(d) (2) such principal obligation shall not exceed the maximum limits prescribed for such section”. Sec. 116. private financing of sale of fha-acquired properties Section 223(c) of the National Housing Act is amended by 68 stat. 605; 75 stat. 154. 12 USC 1715n. striking out “limitation upon eligibility contained in this title II” and inserting in lieu thereof the following: “limitations or requirements contained in this title upon the eligibility of the mortgage, upon the payment of insurance premiums, or upon the terms and conditions of insurance settlement and the benefits of the insurance to be included in such settlement (except that in any case the payment of insurance shall be in debentures)”. Sec. 117. mortgage insurance for non-profit nursing homes Section 232(b)(1) of the National Housing Act is 73 stat. 663. 12 USC 1715w. amended by inserting after “proprietary facility” the following: “or facility of a private nonprofit corporation or association”. Sec. 118. experimental housing (a) Section 233(a) of the National Housing Act is 75 stat. 158. 12 USC 17l5x. amended by striking out “, in the case of mortgages insured under subsection (b) (2) of this section, advances on such mortgages” and inserting in lieu thereof “home improvement loans, and including advances on mortgages”. (b) Section 233(b) of such Act is amended to read as follows: “(b) To be eligible for insurance under this section, a mortgage shall meet the requirements of one of the other sections of this title; except that, in lieu of determining the appraised value or the replacement cost of the property in cases involving new construction or the estimated cost of repair and rehabilitation or improvement in cases involving existing properties, the Commissioner shall estimate the cost of replacing the property using comparable conventional design, materials, and construction, and any limitation upon the maximum mortgage amount available to a nonoccupant owner shall not, in the discretion of the Commissioner, be applicable to mortgages insured under this section.” (c) Section 233 of such Act is further amended by striking out subsections (e) and (f) and inserting in lieu thereof the following: “(e) Any mortgagee or lender under a mortgage insured under subsection (b) shall be entitled to insurance benefits determined in the same manner as such benefits would be determined if such mortgage or loan were insured under the section of this title for which it otherwise would have been eligible except for the experimental feature of the property involved.” (d) Section 233 of such Act is further amended by redesignating subsections (g) and (h) as subsections (f) and (g), respectively, and by striking out “subsections (e) and (f)” in the first sentence of the subsection so redesignated as subsection (f) and inserting in lieu thereof “subsection (e)”. Sec. 119. mortgage insurance for condominiums (a) Section 234 of the National Housing Act is amended— (1) by striking out the heading and inserting in lieu thereof “mortgage insurance for condominiums”; (2) by striking out “structure” each place it appears and inserting in lieu thereof “project” (and by striking out “structures” in the last sentence of subsection (c) and inserting in lieu thereof “projects”); (3) by striking out “the term ‘mortgage’ for the purposes of this section” in subsection (b) and inserting in lieu thereof “the term ‘mortgage’ for the purposes of subsection (c)”; (4) (A) by striking out “this section” each time it appears in subsection (c) and inserting in lieu thereof “this subsection”; (B) by striking out “under another section’ in the first sentence of subsection (c) and inserting in lieu thereof “under any section”; (5) by striking out “section 213” each time it appears in subsection (c) and inserting in lieu thereof “section 213(a) (1) and (2)”; (6) by striking out the third sentence of subsection (c) and inserting in lieu thereof the following: “To be eligible for insurance pursuant to this subsection, a mortgage shall (A) involve a principal obligation in an amount not to exceed $30, 000, and not to exceed the sum of (i) 97 per centum of $15, 000 of the amount which the Commissioner estimates will be the appraised value of the family unit including common areas and facilities as of the date the mortgage is accepted for insurance, (ii) 90 per centum of such value in excess of $15, 000 but not in excess of $20, 000, and (iii) 75 per centum of such value in excess of $20, 000, and (B) have a maturity satisfactory to the Commissioner, but not to exceed, in any event, thirty-five years from the date of the beginning of amortization of the mortgage or three-fourths of the Commissioner’s estimate of the remaining economic life of the project, whichever is the lesser.”; (7) by redesignating subsection (d) as subsection (g), by redesignating subsections (e) and (f) as subsections (i) and (j), respectively, and by inserting after subsection (c) the following new subsections: “(d) In addition to individual mortgages insured under subsection (c), the Commissioner is authorized, in his discretion and under such terms and conditions as he may prescribe, to insure blanket mortgages (including advances on such mortgages during construction) which cover multifamily projects to be constructed or rehabilitated in cases where the mortgage is held by a mortgagor, approved by the Commissioner, which— “(1) has certified to the Commissioner, as a condition of obtaining the insurance of a blanket mortgage under this subsection, that upon completion of the multifamily project covered by such mortgage it intends to commit the ownership of the multi-family project to a plan of family unit ownership under which each family unit would be eligible for individual mortgage insurance under subsection (c) and will faithfully and diligently make and carry out all reasonable efforts to establish such plan of family unit ownership and to sell such family units to purchasers approved by the Commissioner; and “(2) shall be regulated or restricted by the Commissioner as to rents, charges, capital structure, rate of return, and methods of operation until the termination of all obligations of the Commissioner under the insurance and during such further period of time as the Commissioner shall be the owner, holder, or reinsurer of the mortgage. The Commissioner may make such contracts with and acquire for not to exceed $100 such stock or interest in such mortgagor as he may deem necessary to render effective the regulation and restriction of such mortgagor. The stock or interest acquired by the Commissioner shall be paid for out of the Apartment Unit Insurance Fund, and shall be redeemed by the mortgagor at par at any time upon the request of the Commissioner after the termination of all obligations of the Commissioner under the insurance. “(e) To be eligible for insurance, a blanket mortgage on any multi-family project of a mortgagor of the character described in subsection (d) shall involve a principal obligation in an amount— “(1) not to exceed $20, 000, 000, or not to exceed $25, 000, 000 if the mortgage is executed by a mortgagor regulated or supervised, under Federal or State law or by a political subdivision of a State or any agency thereof, as to rents, charges, and methods of operation; “(2) not to exceed 90 per centum of the amount which the Commissioner estimates will be the replacement cost of the project when the proposed physical improvements are completed; “(3) not to exceed, for such part of the project as may be attributable to dwelling use (excluding exterior land improvements as defined by the Commissioner), $9, 000 per family unit without a bedroom, $12, 500 per family unit with one bedroom, $15, 000 per family unit with two bedrooms, and $18, 500 per family unit with three or more bedrooms; except that as to projects to consist of elevator-type structures the Commissioner may, in his discretion, increase the dollar amount limitations per family unit to not to èxceed $10, 500 per family unit without a bedroom, $15, 000 per family unit with one bedroom, $18, 000 per family unit with two bedrooms, and $22, 500 per family unit with three or more bedrooms, as the case may be, to compensate for the higher costs incident to the construction of elevator-type structures of sound standards of construction and design; and except that the Commissioner may, by regulation, increase any of the foregoing dollar amount limitations contained in this paragraph by not to exceed 45 per centum in any geographical area where he finds that cost levels so require; and “(4) not to exceed an amount equal to the sum of the unit mortgage amounts determined under the provisions of subsection (c) assuming the mortgagor to be the owner and occupant of each family unit. “(f) Any blanket mortgage insured under subsection (d) shall provide for complete amortization by periodic payments within such term as the Commissioner may prescribe but not to exceed forty Sears from the beginning of amortization of the mortgage, and shall ear interest (exclusive of premium charges for insurance) at not to exceed 5¼ per centum per annum on the amount of the principal obligation outstanding at any time. The Commissioner may consent to the release of a part or parts of the mortgaged property from the lien of the blanket mortgage upon such terms and conditions as he may prescribe and the blanket mortgage may provide for such release. The project covered by the blanket mortgage may include five or more family units and such commercial and community facilities as the Commissioner deems adequate to serve the occupants.”; (8) by striking out “this section” each time it appears in the subsection redesignated as subsection (g) by paragraph (7) of this subsection and inserting in lieu thereof “subsection (c) of this section”; (9) by inserting after the subsection redesignated as subsection (g) by paragraph (7) of this subsection the following new subsection: “(h) The provisions of subsections (d), (e), (g), (h), (i), (j), (k), 12 USC 1713. (l), (m), (n), and (p) of section 207 shall be applicable to mortgages insured under subsection (d) of this section, except that all references to the Housing Insurance Fund, or Housing Fund, shall be construed to refer to the Apartment Unit Insurance Fund.”; and (10) by amending the subsection redesignated as subsection (j) by paragraph (7) of this subsection to read as follows: “(j) The provisions of sections 225 and 230 shall be applicable to the mortgages insured under subsection (c) of this section.” (b) Section 212(a) of such Act is amended by adding at the end thereof the following new sentence: “The provisions of this section shall also apply to the insurance of any mortgage under section Ante, p. 780. 234(d).” (c) Section227(a) of such Act is amended by striking out “or (vii)” and inserting in lieu thereof “(vii)”, and by inserting before the semi-colon at the end thereof “, or (viii) under section 234(d)”. Sec. 120. prepayment of mortgages by nonprofit educational institutions Title V of the National Housing Act is amended by adding at the end thereof the following new section: “Sec. 517. “prepayment of mortgages by nonprofit educational institutions (a) Notwithstanding any other provision of this Act, no adjusted premium charge shall be collected in connection with the payment in lull, prior to maturity, of any mortgage insured under this Act, if the mortgagor certifies to the Commissioner that the loan was paid in full by or on behalf of a nonprofit educational institution which intends to use the property for educational purposes. “(b) The Commissioner shall refund any adjusted premium charge collected subsequent to July 1, 1962, and prior to the date of the enactment of the Housing Act of 1964, in connection with the payment in full, prior to maturity, of any mortgage insured under this Act, if the mortgagor under such mortgage makes the certification prescribed by subsection (a).” Sec. 121. correction of substantial defects in mortgaged homes Title V of the National Housing Act is amended by adding after section 517 (added by section 120 of this Act) the following new Ante, p. 782. section: “Sec. 518. “expenditures to correct or compensate for substantial defects in mortgaged homes (a) The Commissioner is authorized, with respect to any property improved by a one- to four-family dwelling approved for mortgage insurance prior to the beginning of construction which he finds to have structural defects, to make expenditures for (1) correcting such defects, (2) paying the claims of the owner of the property arising from such defects, or (3) acquiring title to the property: Provided, That such authority of the Commissioner shall exist only (A) if the owner has requested assistance from the Commissioner not later than four years (or such shorter time as the Commissioner may prescribe) after insurance of the mortgage, and (B) if the property is encumbered by a mortgage which is insured under this Act after the date of enactment of the Housing Act of 1964. “(b) The Commissioner shall by regulations prescribe the terms and conditions under which expenditures and payments may be made under the provisions of this section, and his decisions regarding such expenditures or payments, and the terms and conditions under which the same are approved or disapproved, shall be final and conclusive and shall not be subject to judicial review.”

6. 1964

   Housing Act of 1964

   Pub. L. 88–560 § 118(d) · 78 Stat. 769

   Redesignated · 12 U.S.C. § 1715x(g); 12 U.S.C. § 1715x(h)

   Pub. L. 88–560, § 118(d), redesignated subsec. (h) as (g). Former subsec. (g) redesignated (f)

   Source evidence

   Code amendment note
   Subsecs. (g), (h). Pub. L. 88–560, § 118(d), redesignated subsec. (h) as (g). Former subsec. (g) redesignated (f).

   Enacted provision · exact public law section
   (d) Section 233 of such Act is further amended by redesignating subsections (g) and (h) as subsections (f) and (g), respectively, and by striking out “subsections (e) and (f)” in the first sentence of the subsection so redesignated as subsection (f) and inserting in lieu thereof “subsection (e)”.

7. 1965

   Housing and Urban Development Act of 1965

   Pub. L. 89–117 § 1108(n)(1) · 79 Stat. 451

   1. Substituted · 12 U.S.C. § 1715x(f)

      Pub. L. 89–117, § 1108(n)(1), (2), substituted “General Insurance Fund” for “Experimental Housing Insurance Fund”

   2. Struck · 12 U.S.C. § 1715x(f)

      Pub. L. 89–117, § 1108(n)(1), (2), struck out provision that all references in section 1713 of this title to the Housing Insurance Fund, the Housing Fund, or the Fund shall be construed to refer to the Experimental Housing Insurance Fund

   Source evidence

   Code amendment note
   Subsec. (f). Pub. L. 89–117, § 1108(n)(1), (2), substituted “General Insurance Fund” for “Experimental Housing Insurance Fund” and struck out provision that all references in section 1713 of this title to the Housing Insurance Fund, the Housing Fund, or the Fund shall be construed to refer to the Experimental Housing Insurance Fund.

   Enacted provision · exact public law section
   (1) by striking out “the Experimental Housing Insurance Fund” in clause (1) of the third sentence of subsection (f) and inserting in lieu thereof “the General Insurance Fund”;

8. 1965

   Housing and Urban Development Act of 1965

   Pub. L. 89–117 § 1108(n)(3) · 79 Stat. 451

   Repealed · 12 U.S.C. § 1715x(g)

   Pub. L. 89–117, § 1108(n)(3), repealed subsec. (g) which created the Experimental Housing Insurance Fund, provided for transfer of funds thereto, and authorized the charging of expenses thereto

   Source evidence

   Code amendment note
   Subsec. (g). Pub. L. 89–117, § 1108(n)(3), repealed subsec. (g) which created the Experimental Housing Insurance Fund, provided for transfer of funds thereto, and authorized the charging of expenses thereto.

   Enacted provision · exact public law section
   (3) by striking out subsection (g).

9. 1967

   Pub. L. 90–19 § 1(a)(3) · 81 Stat. 17

   Substituted · 12 U.S.C. § 1715x(a)(d)(f)

   Pub. L. 90–19 substituted “Secretary” for “Commissioner” wherever appearing

   Source evidence

   Code amendment note
   Subsecs. (a) to (d), (f). Pub. L. 90–19 substituted “Secretary” for “Commissioner” wherever appearing.

   Enacted provision · exact public law section
   (1) by striking out “Federal Housing Administration” each place it appears and inserting in lieu thereof “Department of Housing and Urban Development”;

10. 1968

    Housing and Urban Development Act of 1968

    Pub. L. 90–448 § 108(f)(1) · 82 Stat. 476

    1. Amended · 12 U.S.C. § 1715x(a)

       Pub. L. 90–448, § 108(f)(1), designated existing provision as par. (1)

    2. Redesignated · 12 U.S.C. § 1715x(a)

       Pub. L. 90–448, § 108(f)(1), redesignated cls. (1), (2), and (3) as cls. (A), (B), and (C), respectively

    3. Added · 12 U.S.C. § 1715x(a)

       Pub. L. 90–448, § 108(f)(1), added par. (2)

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 90–448, § 108(f)(1), designated existing provision as par. (1), redesignated cls. (1), (2), and (3) as cls. (A), (B), and (C), respectively, and added par. (2).

    Enacted provision · exact public law section
    (1) Section 233(a) of the National Housing Act is amended— (A) by inserting “(1)” after “(a)”, (B) by redesignating clauses (1), (2), and (3) as clauses (A), (B), and (C) respectively, and (C) by adding at the end thereof the following new paragraph: “(2) The Secretary is further authorized to insure and to make commitments to insure, under this section, mortgages (including advances on mortgages during construction) secured by properties in projects to be carried out in accordance with plans approved by the .Secretary under section 108 of the Housing and Urban Development Ante, p. 495. Act of 1968.”.

11. 1968

    Housing and Urban Development Act of 1968

    Pub. L. 90–448 § 309(1) · 82 Stat. 476

    Substituted · 12 U.S.C. § 1715x(b)

    Pub. L. 90–448, § 309(1), substituted “one of the other sections or subchapters of this chapter” for “one of the other sections of this subchapter”

    Source evidence

    Code amendment note
    Subsec. (b). Pub. L. 90–448, § 309(1), substituted “one of the other sections or subchapters of this chapter” for “one of the other sections of this subchapter”.

    Enacted provision · exact public law section
    (1) by striking out “of this title” immediately before the semi-colon in subsection (b) and inserting in lieu thereof “or titles of this Act”; and

12. 1968

    Housing and Urban Development Act of 1968

    Pub. L. 90–448 § 108(f)(2) · 82 Stat. 476

    Inserted · 12 U.S.C. § 1715x(c)

    Pub. L. 90–448, § 108(f)(2), inserted sentence providing that any authority which the Secretary may exercise in connection with a mortgage, or property covered by a mortgage, insured under any other section of this subchapter (including payments to reduce rentals for, or to facilitate homeownership by, lower income families) may be exercised in connection with a mortgage, or property covered by a mortgage, meeting the requirements of such other section (except as specified in subsec. (b)), which is insured under this section to the same extent and in the same manner as if the mortgage insured under this section was insured under such other section

    Source evidence

    Code amendment note
    Subsec. (c). Pub. L. 90–448, § 108(f)(2), inserted sentence providing that any authority which the Secretary may exercise in connection with a mortgage, or property covered by a mortgage, insured under any other section of this subchapter (including payments to reduce rentals for, or to facilitate homeownership by, lower income families) may be exercised in connection with a mortgage, or property covered by a mortgage, meeting the requirements of such other section (except as specified in subsec. (b)), which is insured under this section to the same extent and in the same manner as if the mortgage insured under this section was insured under such other section.

    Enacted provision · exact public law section
    (2) Section 233(c) of such Act is amended by inserting at the end thereof the following new sentence: “Any authority which the Secretary’ may exercise in connection with a mortgage, or property covered by a mortgage, insured under any other section of this title (including payments to reduce rentals for, or to facilitate homeownership by, lower income families) may be exercised in connection with a mortgage, or property covered by a mortgage, meeting the requirements of such other section (except as specified in subsection (b)), which is insured under this section to the same extent and in the same manner as if the mortgage insured under this section was insured under such other section.”

13. 1968

    Housing and Urban Development Act of 1968

    Pub. L. 90–448 § 309(2) · 82 Stat. 476

    Substituted · 12 U.S.C. § 1715x(e)

    Pub. L. 90–448, § 309(2), substituted “the section or subchapter of this chapter” for “the section of this subchapter”

    Source evidence

    Code amendment note
    Subsec. (e). Pub. L. 90–448, § 309(2), substituted “the section or subchapter of this chapter” for “the section of this subchapter”.

    Enacted provision · exact public law section
    (2) by striking out “of this title” in subsection (e) mid inserting in lieu t hereof “or title of this Act”.

15 of 19 references resolved to an enrolled provision · 4 partial