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appointment of a conservator or receiver


committee, to provide such subcommittee shall be made except pursuant to a formal resolution of the Board stating the grounds ing terms shall have the meanings respec

"SEC. 602. As used in this title, the follow. with a suitable office and meeting place and

to furnish to the subcommittee such staff therefor and except notice thereof is given tively ascribed to them below, and, unless

assistance as may be reasonably necessary to said association stating the grounds therethe context clearly indicates otherwise, shall

for the purpose of assisting it in the performfor and until an opportunity for an admininclude the plural as well as the singular

ance of the functions hereinafter set forth. istrative hearing thereon is afforded to said number:

In complying with these requirements, the association. Such hearing shall be held in

“(a) 'Insured or guaranteed mortgage

Administrator may act through and may utiaccordance with the provisions of the Administrative Procedure Act and shall be subject tion or purchase of a family dwelling or loan' means any loan made for the construc- lize the services of the several Federal home

loan banks. to review as therein provided and the review by the court shall be upon the weight

dwellings and which is (1) guaranteed or "Function of National Committee and of

insured under the Servicemen's Readjustof the evidence. A conservator shall have all

regional subcommittees ment Act of 1944, as amended, or (2) secured the powers of the members, the directors, and

"SEC. 605. It shall be the function of the officers of the Federal association and shall by a mortgage insured under the National

National Committee and the regional subbe authorized to operate it in its own name Housing Act, as amended.

committees to facilitate the flow of funds

"(b) 'Private financing institutions' means or conserve its assets in the manner and to life insurance companies, savings banks,

for residential mortgage loans into areas or the extent authorized by the Board. The

communities where there may be a shortage Board shall appoint only the Federal Savings

commercial banks, savings and loan associa-
tions (including cooperative banks, home-

of local capital for, or inadequate facilities and Loan Insurance Corporation as receiver stead association, and building and loan as

for access to, such loans, and to achieve the for any Federal savings and loan association, sociations), and mortgage companies.

maximum utilization of the facilities of which shall have power as receiver to buy at its own sale subject to approval by the Board.

"(c) Administrator' means the Housing private financing institutions for this pur

pose by soliciting and obtaining the cooperWith the consent of the association expressed

and Home Finance Administrator. by a resolution of the board of directors or

“(d) 'State' means the several States, the

ation of all such private financing institu

tions in extending credit for insured or guarof its members, the Board is authorized to

District of Columbia, the Commonwealth of
Puerto Rico, and the Territories and posses-

anteed mortgage loans wherever consistent appoint a conservator or receiver for a Federal association without notice and without sions of the United States.

with sound underwriting principles.

"SEC. 606. The National Committee shall hearing. The Board shall have power to

"National Voluntary Mortgage Credit

study and review the demand and supply of make rules and regulations for the reorgan

Extension Committee

funds for residential mortgage loans in all ization, merger, and liquidation of Federal "SEC. 603. There is hereby established a parts of the country, and shall receive reassociations and for such associations in con

National Voluntary Mortgage Credit Exten- ports from and correlate the activities of the servatorship and receivership and for the

sion Committee, hereinafter called the 'Na- regional subcommittees. It shall also periconduct of conservatorships and receiver- tional Committee', which shall consist of the odically inform the Commissioner of the ships. Whenever a Supervisory Representa- Housing and Home Finance Administrator, Federal Housing Administration and the Adtive in Charge, conservator, or receiver, ap- who shall act as Chairman of the National ministrator of Veterans' Affairs concerning pointed by the Board pursuant to the provi- Committee, and fourteen other persons ap- the results of the studies and of the progress sions of this section, demands possession of pointed by the Administrator as follows: of the National Committee and regional subthe property, business and assets of any “(a) Two representatives of each type of committees in performing their function, association, the refusal of any officer, agent, private financing institutions;

and shall to the extent practicable maintain employee, or director of such association to “(b) Two representatives of builders of liaison with State and local Government comply with the demand shall be punish- residential properties; and

housing officials in order that they may be able by a fine of not more than $1,000 or by "(c) Two representatives of real estate fully apprized of the function and work of imprisonment for not more than one year or boards.

the National Committee and regional subboth by such fine and imprisonment.'; and "The Administrator shall also request the committees. The Administrator shall, not

"(3) by striking out the second paragraph Board of Governors of the Federal Reserve later than April 1 in each year, make a full of subsection (c) of section 5 and inserting System to designate a representative of the report of the operations of the National Comir lieu thereof the following new paragraph: Board to serve on the National Committee mittee and the regional subcommittees to 'Without regard to any other provision in an advisory capacity.

the Congress. of this subsection except the area require- “The Administrator shall also request the “Sec. 607. (a) Each regional subcommittee ment such associations are authorized to Administrator of Veterans' Affairs to desig- shall study and review the demand and supinvest a sum not in excess of 15 per centum nate a representative to serve on the Na- ply of funds for residential mortgage loans of the assets of such association in loans in- tional Committee in an advisory capacity. in its region, shall analyze cases of unsatissured under title I of the National Housing “The Administrator shall also request the fied den and for mortgage credit, and shall Act, as amended, in unsecured loans insured Home Loan Bank Board to designate a rep- report to the National Committee the results or guaranteed under the provisions of the resentative of the Board to serve on the of its study and analysis. It shall also mainServicemen's Readjustment Act of 1944, as

National Committee in an advisory capacity. tain liaison with officers of the Federal amended, and in other loans for property "In selecting and appointing the members Housing Administration and of the Veterans' alteration, repair, or improvement: Provided, of the National Committee, the Administra- Administration within its region in order That no such loan shall be made in excess tor shall have due regard to fair representa- that such oficers may be fully apprized of of $2,500.'

tion thereon for small, medium, and large the function and work of the National Com"TITLE VI-VOLUNTARY HOME MORTGAGE

private financing institutions and for dif- mittee and regional subcommittees. It shall

ferent geographical areas. Members of the request such officers to supply to the subCREDIT PROGRAM

National Committee appointed by the Ad- committee information regarding cases of Declaration of policy

ministrator shall serve on a voluntary basis. unsatisfied demand for mortgage credit for "SEC. 601. It is declared to be the policy of

Regional subcommittees

loans eligible for insurance under the Congress

National Housing Act, as amended, or for

"SEC. 604. (a) As soon as practicable, the “(a) to seek the constant improvement of

insurance or guaranty under the ServiceNational Committee shall divide the United the living conditions of all the people under

men's Readjustment Act of 1944, as amended. States into regions conforming generally to

Such officers are authorized to furnish such a strong, free, competitive economy, and to

the Federal Reserve districts. The Administake such action as will facilitate the opera

information to such subcommittee. trator, after consultation with the other tion of that economy to provide adequate

“(b) A regional subcommittee shall render members of the National Committee, shall, housing for all the people and to meet the

assistance to any applicant for a loan, the for each such region, designate five or more demands for new building;

proceeds of which are to be used for the persons representing private financing insti“(b) to provide a means of financing hous

construction or purchase of a family dwelling tutions and builders of residential properties ing within the framework of our private

or dwellings, upon receipt of a certificate in such region to serve as a regional subcomenterprise system and without vast expendi

from such applicant, stating thatmittee of the National Committee for the tures of public moneys;

“(1) application for such loan has been purpose of assisting in placing with private "(c) to encourage and facilitate the flow

made to at least two private financing infinancing institutions insured or guaranteed of funds for housing credit into remote

stitutions, or in the alternative to such mortgage loans as hereinafter set forth. In areas and small communities, where such

private financing institution or institutions designating the members of each such refunds are not available in adequate supply;

as may be reasonably accessible to the apgional subcommittee, the Administrator and

plicant; shall have due regard to fair representation “(d) to assist in the development of a pro

(2) the applicant has been informed by thereon for small, medium, and large financgram consonant with sound underwriting ing institutions and builders of residential

the above-mentioned private financing inprinciples, whereby private financing insti- properties and for different geographical

stitution or institutions that funds for morttutions engaged in mortgage lending can areas within such regions. Members of each

gage credit on the loan are unavailable; and make a maximum contribution to the eco- regional subcommittee shall serve on a vol- “(3) the applicant is eligible for insurance nomic stability and growth of the Nation untary basis.

or guaranty under the Servicemen's Rethrough extension of the market for insured “(b) The Administrator is authorized and adjustment Act of 1944, as amended, or con. or guaranteed mortgage loans.

directed, upon the request of a regional sub- sents that the mortgage to be issued as

security for the loan be insured under the ning resources, the Administrator is author- any amounts so appropriated shall remain National Housing Act, as amended.

ized to make planning grants to State plan- available until expended: Provided, That not Upon receipt of such certification from an ning agencies for the provision of planning to exceed 1 per centum of the funds apapplicant the regional subcommittee shall assistance (including surveys, land use propriated under this section may be used circularize private financing institutions in studies, urban renewal plans, technical serv- for the purpose of surveying the status and the region or elsewhere and shall use its ices and other planning work, but excluding current volume of advanced public works best efforts to enable the applicant to place plans for specific public works) to cities and planning among the several States and their the loan with a private financing institution. other municipalities having a population of subdivisions, such surveys to be carried out It shall render similar assistance to any less than 25,000 according to the latest by the Administrator in cooperation with applicant for a loan, the proceeds of which decennial census. The Administrator is the Council of Economic Advisers in the are to be used for the construction or pur- further authorized to make planning grants Executive Office of the President. Not more chase of a family dwelling or dwellings, for similar planning work in metropolitan than 5 per centum of the funds so approupon receipt of information from the Vet- and regional areas to official State, metro- priated shall be expended in any one State. erans' Administration to the effect that the politan, or regional planning agencies em

"Definitions applicant has applied for a direct loan, if powered under State or local laws to perform he is eligible for such a loan, and that he such planning. Any grant made under this

"SEC. 703. As used in this title, (1) the is eligible for insurance or guaranty, under section shall not exceed 50 per centum of the

term 'State' shall mean any State, the Disthe Servicemen's Readjustment Act of 1944, estimated cost of the work for which the

trict of Columbia, the Commonwealth of as amended. In order to encourage small or grant is made and shall be subject to terms Puerto Rico, and any territory or possession local private financing institutions to origi- and conditions prescribed by the Admin

of the United States; (2) the term 'Adminnate insured or guaranteed mortgage loans, istrator to carry out this section. The Ad- istrator' shall mean the Housing and Home it may also render similar assistance to ministrator is authorized, notwithstanding

Finance Administrator; (3) the term 'public private financing institutions in locating the provisions of section 3648 of the Revised

works' shall include any public works other other private financing institutions willing Statutes, as amended, to make advance or

than housing; and (4) the term 'public to repurchase such mortgage loans on a progress payments on account of any plan- agency' or 'public agencies' shall mean any mutually satisfactory basis. ning grant made under this section. There

State, as herein defined, or any public agency "(c) In the performance of its responsi- is hereby authorized to be appropriated not

or political subdivision therein. bilities under subsection (b) of this section, exceeding $5,000,000 to carry out the pur- "TITLE VIII–MISCELLANEOUS PROVISIONS a regional subcommittee may at its discre- poses of this section, and any amounts so

"SEC. 801. (a) The Federal Housing Comtion (1) request the National Committee appropriated shall remain available until missioner and the Administrator of Veterans to obtain for it the aid of other regional expended.

Affairs, respectively, are hereby authorized subcommittees in seeking sources of mort

"Reserve of planned public works and directed to require that, in connection gage credit, and (2) request and obtain voluntary assurances from any one or more

“Sec. 702. (a) In order (1) to encourage

with any property upon which there is located private financing institutions that they will municipalities and other public agencies to

a dwelling designed principally for not more make funds available for insured or guaranmaintain a continuing and adequate reserve

than a four-family residence and which is teed mortgage loans in any specified area or of planned public works the construction of

approved for mortgage insurance or guaranty areas within its region in which the subcom- which can rapidly be commenced whenever prior to the beginning of construction, the mittee finds that there is a lack of adequate the economic situation may make such ac

seller or builder, and such other person as credit facilities for such loans. tion desirable, and (2) to attain maximum

may be required by the said Commissioner economy and efficiency in the planning and

or Administrator to become warrantor, shall "Regulations of Administrator construction of local, State, and Federal

deliver to the purchaser or owner of such "SEC. 608. The Administrator, after con- public works, the Administrator is hereby property a warranty that the dwelling is consultation with the National Committee, shall authorized, during the period of three years

structed in substantial conformity with the have power to issue general rules and pro

(including any commencing on July 1, 1954, to make ad

plans and specifications cedures for the effective implementation of vances to public agencies from funds avail

amendments thereof, or changes and variathis title and for the functioning of the able under this section (notwithstanding

tions therein, which have been approved in regional subcommittees, pursuant to the pro- the provisions of section 3648 of the Revised

writing by the Federal Housing Commissioner visions hereof and not in conflict herewith. Statutes, as amended) to aid in financing

or the Administrator of Veterans' Affairs) on “General provisions the cost of engineering and architectural

which the Federal Housing Commissioner or

the Administrator of Veterans Affairs based surveys, designs, plans, working drawings, "SEC. 609. No act pursuant to the provispecifications, or other action preliminary

his valuation of the dwelling: Provided,

: sions of this title and which occurs while to and in preparation for the construction

That the Federal Housing Commissioner or this title is in effect shall be construed to

the Administrator of Veterans' Affairs shall of public works: Provided, That the making be within the prohibitions of the antitrust of advances hereunder shall not in any way

deliver to the builder, seller, or other warlaws or the Federal Trade Commission Act commit the Congress to appropriate funds

rantor his written approval (which shall be of the United States. Service as a member

conclusive evidence of such approval) of any to assist in financing the construction of of the National Committee or of any reany public works so planned.

amendment of, or change or variation in, gional subcommittee is not to be construed

such plans and specifications which the Com

(b) No advance shall be made hereunder as holding any office or employment with the

missioner or the Administrator deems to be Government of the United States. The Ad

with respect to any individual project unless
it conforms to an overall State, local, or

a substantial amendment thereof, or change ministrator is authorized and directed, upon

or variation therein, and shall file a copy of the request of the National Committee, to regional plan approved by a competent

such written approval with such plans and State, local, or regional authority, and unprovide such Committee with a suitable office

specifications: Provided further, That such less the public agency formally contracts and meeting place and to furnish to the

warranty shall apply only with respect to with the Federal Government to complete Committee such staff assistance as may be

such instances of substantial nonconformity the plan preparation promptly and to repay reasonably necessary for the purpose of as

to such approved plans and specifications sisting it in the performance of the functions such advance when due. Subsequent to ap

(including any amendments thereof, or of such Committee. Funds available to the proval and prior to disbursement of any

changes or variations therein, which have Administrator for administrative expenses

Federal funds for the purpose of advance been approved in writing, as provided herein, shall be available for all expenses necessary planning, the applicant shall establish a

by the Federal Housing Commissioner or the separate planning account into which all in carrying out the provisions of this title,

Administrator of Veterans' Affairs) as to including expenses of persons serving as Federal and applicant funds estimated to

which the purchaser or homeowner has given members of any committee or subcommittee be required for plan preparation shall be

written notice to the warrantor within one placed. established pursuant to this title for com

year from the date of conveyance of title to, munications, transportation, and not to ex

"(c) Advances under this section to any or initial occupancy of, the dwelling, whichceed $25 per diem in lieu of subsistence when public agency shall be repaid without in

ever first occurs: Provided further, That such away from their homes or regular places of

terest by such agency when the construc- warranty shall be in addition to, and not in business in connection with the business of

tion of the public works is undertaken or derogation of, all other rights and privileges such committee or subcommittee.

started: Provided, That in the event repay- which such purchaser or owner may have "SEC. 610. (a) This title and all authority ment is not made promptly such unpaid under any other law or instrument: And proconferred hereunder shall terminate at the

sum shall bear interest at the rate of 4 per vided further, That the provisions of this close of June 30, 1957.

centum per annum from the date of the section shall apply to any such property “(b) Notwithstanding

Government's demand for repayment to the subsection (a),

covered by a mortgage insured or guaranteed Congress, by concurrent resolution, may ter

date of payment thereof by the public by the Federal Housing Commissioner or the minate this title prior to the termination

agency. All sums so repaid shall be covered Administrator of Veterans' Affairs on and date hereinabove provided for.

into the Treasury as miscellaneous receipts. after October 1, 1954, unless such mortgage

"(d) The Administrator is authorized to "TITLE VII—URBAN PLANNING AND RESERVE OF prescribe rules and regulations to carry out

is insured or guaranteed pursuant to a com

mitment therefor made prior to October 1, PLANNED PUBLIC WORKS the purposes of this section.

1954. Urban planning

(e) There is hereby authorized to be ap- (b) The Federal Housing Commissioner "Sec. 701. To facilitate urban planning for propriated not exceeding $10,000,000 to car- and the Administrator of Veterans' Affairs, smaller communities lacking adequate plan- ry out the purposes of this section, and respectively, are further directed to permit copies of the plans and specifications (in- tion) as he may designate,' and insert in lieu residential uses, and (5) the city or local cluding written approvals of any amend- thereof the words “the Housing and Home public agency has furnished assurances satments thereof, or changes or variations Finance Administrator'.

isfactory to the Administrator that no intherein, as provided herein) for dwellings “(2) Strike out all of subsection (b) and dividual who is employed by, or is an offiin connection with which warranties are insert in lieu thereof the following:

cial of, the government of the city in which required by subsection (a) of this section to "'(b) For the purposes of this section, not- the land is located, or any agency thereof, be made available in their appropriate local withstanding any other provision of law, the shall be permitted, directly or indirectly, offices for inspection or for copying by any Housing and Home Finance Administrator is to have any financial interest in the purpurchaser, homeowner, or warrantor during authorized to obtain from a revolving fund chase or redevelopment of such land: Prosuch hours or periods of time as the said to be established in the Treasury of the vided, That such acquisitions by the AdCommissioner and Administrator may deter- United States not to exceed a total of $50,- ministrator pursuant to this sentence shall mine to be reasonable.

000,000 outstanding at any one time. For be limited to not exceeding four hundred and "SEC. 802. (a) The Housing and Home this purpose there is hereby authorized to twenty-five acres of land in the general area Finance Administrator shall, as soon as prac- be appropriated to such revolving fund in in which approximately one thousand five ticable during each calendar year, make a the Treasury the amount of $50,000,000. Ad- hundred units of temporary housing held by report to the President for submission to vances from the revolving fund shall be made the United States of America were unoccuthe Congress on all operations under the to the Housing and Home Finance Adminis- pied on said date.'; jurisdiction of the Housing and Home trator upon his request, and such advances "(2) by adding the following new subFinance Agency during the previous cal- together with receipts under this section section at the end of section 607: endar year.

shall be available for all necessary expenses, “'(g) The Administrator may dispose of “(b) Section 311 of 'An Act to expedite the including administrative expenses, under any permanent war housing without regard provision of housing in connection with na- this section. The Housing and Home Finance to the preferences in subsections (b) and tional defense, and for other purposes', ap- Administrator shall pay into the Treasury as (c) of this section when he determines that proved October 14, 1940, as amended; section miscellaneous receipts, at the close of each (1) such housing, because of design or lack 6 of 'An Act to provide for the advance plan- fiscal year, interest on the amount of ad- of amenities, is unsuitable for family dwellning of non-Federal public works', approved vances outstanding, at a rate determined by ing use, or (2) it is being used at the time October 13, 1949, as amended; and sections the Secretary of the Treasury, taking into of disposition for other than dwelling pur5 and 402 (f) of the National Housing Act, consideration the current average rate on poses, or (3) it was offered, with preferences as amended, are hereby repealed.

outstanding interest-bearing

marketable substantially similar to those provided in "(c) The National Housing Act, as amend- public debt obligations of the United States

the Housing Act of 1950 (64 Stat. 48), to ed, is hereby amended

of comparable maturities. As the Housing veterans and occupants prior to enactment (1) by striking the heading 'ANNUAL RE- and Home Finance Administrator repays of said Act.'; and PORT' immediately after section 4 and insert- principal sums advanced from the revolving "(3) by adding the following new section ing 'TAXATION'; and

fund pursuant to this section, such repay- at the end of title VI: “(2) by striking from subsection (e) of ments shall be made to the revolving fund.' “ 'SEC. 613. Upon a certification by the section 406 the word 'Congress' and inserting “(3) Strike out from subsection (c) there- Secretary of the Interior that any surplus 'Housing and Home Finance Administrator.' of the words 'officer or agency designated by housing, classified by the Administrator as

“(d) The first sentence of section 7 (b) of the President and insert in lieu thereof the demountable, in the area of San Diego, the United States Housing Act of 1937, as words 'Housing and Home Finance Admin- California, is needed to provide dwelling amended, is hereby amended to read as fol- istrator'.

accommodations for members of a tribe of lows: "The annual report of the Housing “(4) Strike out from subsection (d) there- Indians in Riverside County or San Diego and Home Finance Administrator to the of '1955' and insert in lieu thereof '1956'. County, California, the Administrator is President for submission to the Congress on "SEC. 805. The Act entitled 'An Act to ex- hereby authorized, not withstanding any the operations of the Housing and Home pedite the provision of housing in connec- other provision of law, to transfer and conFinance Agency shall include a report on the tion with national defense, and for other vey such housing without consideration to operations and expenses of the Authority, purposes', approved October 14, 1940, as

such tribe, the members thereof, or the Secincluding loans, contributions, and grants amended, is hereby amended

retary of the Interior in trust therefor, as made or contracted for, low-rent housing "(1) by adding the following at the end

the Secretary may prescribe: Provided, That and slum clearance projects undertaken, and of section 605 (a):

the term housing as used in this section the assets and liabilities of the Authority.' “ 'In any city in which, on March 1, 1953,

shall not include land.' (e) Section 106 (a) of the Housing Act of there were more than ten thousand tempo- “SEC. 806. Subsection 302 (b) of Public 1949, as amended, is hereby amended by rary housing units held by the United States Law 139, 82d Congress, as amended, is hereby striking '; and' at the end of paragraph (3) of America, or in any two contiguous cities amended by striking the second sentence thereof, inserting a period in lieu thereof, in one of which there were on such date thereof and adding the following: and striking paragraph (4).

more than ten thousand temporary housing “ 'Any temporary housing constructed or (f) The Federal Home Loan Bank Act, units so held, the Administrator may ac- acquired under this title which the Adminisas amended, is hereby amended by striking quire, by purchase or condemnation, a fee trator determines to be no longer needed for the second sentence of section 20.

simple title to any lands in which the Ad- use under this title shall, unless transferred "SEC. 803. Section 501 (b) of the Service- ministrator holds a leasehold interest, or to the Department of Defense pursuant to men's Readjustment Act of 1944, as amended, other interest less than a fee simple, ac- section 306 hereof, or reported as excess to is hereby amended to read as follows:

quired by the Federal Government for na- the Administrator of the General Services “'(b) Any loan made to a veteran for the tional defense or war housing or for vet- Administration pursuant to the Federal purposes specified in subsection (a) of this

erans' housing where (1) the Administra- Property and Administrative Services Act of section 501 may, notwithstanding the pro- tor finds that the acquisition by him of a 1949, as amended, be sold as soon as practivisions of subsection (a) of section 500 of fee simple title in the land will expedite the cable to the highest responsible bidder after this title relating to the percentage or aggre- disposal or removal of temporary housing public advertising, except that if one or more gate amount of loan to be guaranteed, be under his jurisdiction by facilitating the of such bidders is a veteran purchasing a guaranteed, if otherwise made pursuant to availability of improved sites for privately dwelling unit for his own occupancy the sale the provisions of this title, in an amount owned housing needed to replace such tem- of such unit shall be made to the highest renot exceeding 60 per centum of the loan: porary housing, (2) the city or a local public sponsible bidder who is a veteran so purProvided, That the aggregate amount of any agency has, in accordance with authority chasing: Provided, That the Housing and guaranties to a veteran under this title shall under State law, entered into a firm agree- Home Finance Administrator may reject any not exceed $7,500, nor shall any gratuities ment to purchase the land so acquired at a bid for less than two-thirds of the appraised payable under subsection (c) of section 500 price determined by the Administrator to be value as determined by him: Provided furof this title exceed the amount which is pay- fair, but in no event less than the estimated ther, That the housing may be sold at fair able on loans guaranteed in accordance with cost to the Federal Government of acquir- value (as determined by the Housing and the maxima provided for in subsection (a) ing the fee simple title (including an esti- Home Finance Administrator) to a public of section 500 of this title: And provided mated amount to cover legal and overhead body for public use: And provided further, further, That no such loan for the repair, expenses of such acquisition) as determined That the housing structures shall be sold for alteration, or improvement of property shall by the Administrator, (3) the city or local removal from the site, except that they may be insured or guaranteed under this Act public agency has furnished evidence satis- be sold for use on the site if the governing unless such repair, alteration, or improve- factory to the Administrator that it has or body of the locality has adopted a resolution ment substantially protects or improves the will have funds available to make all agreed- approving use of such structures on the basic livability or utility of the property upon payments to the Federal Government site.' involved.'

and to protect the Federal Government "SEC. 807. Section 601 of the Housing Act “SEC. 804. Section 108 of the Reconstruc- against any loss resulting from the acquisi- of 1949 is hereby amended to read as follows: tion Finance Corporation Liquidation Act tion of fee simple title, (4) the city or local “ 'SEC. 601. The Housing and Home Fi(67 Stat. 230) is amended as follows:

public agency has furnished assurances sat- nance Administrator and the head of each “(1) Strike out from subsection (a) there- isfactory to the Administrator that the land constituent agency of the Housing and Home of the words 'the President, through such will be made available to private enterprise Finance Agency is hereby authorized to esofficer or agency of the Government (other for development, in accordance with local tablish such advisory committee or committhan the Reconstruction Finance Corpora- zoning and other laws, for predominantly tees as each may deem necessary in carrying out any of his functions, powers, and duties hundred and twenty-five dwelling units on Audits under Public Housing Act of 1937; under this or any other Act or authorization. approximately fifty-two and thirty-three

Comptroller General Service as a member of any such committee one-hundredths acres of land in Rocky Hill,

"SEC. 816. Every contract for loans or anshall not constitute any form of service, em- Connecticut, to the housing authority of

nual contributions under the United States ployment, or action within the provisions of the town of Wethersfield, Connecticut, for Housing Act of 1937, as amended, shall prosections 281, 283, 284, or 1914 of title 18, use in providing moderate rental housing.

vide that the Public Housing Commissioner United States Code, or within the provisions Any sale pursuant to this section shall be

and the Comptroller General of the United of section 190 of the Revised Statutes (5 on such terms and conditions as the Ad

States, or any of their duly authorized repU. S. C. 99). Persons serving without com- ministrator shall determine: Provided, That

resentatives, shall, for the purpose of audit pensation as members of any such commit- full payment to the United States shall be

and examination, have access to any books, tee may be paid transportation expenses and required within a period of not to exceed

documents, papers, and records of the pubnot to exceed $25 per diem in lieu of sub- thirty years with interest on unpaid balance

lic housing agency entering into such consistence, as authorized by section 5 of the at not to exceed 5 per centum per annum. tract that are pertinent to its operations Act of August 2, 1946 (5 U. S. C. 73b-2).'

"SEC. 811. The Housing and Home Finance with respect to financial assistance under the "SEC. 808. (a) Section 202 of the Act en

Agency, including its constituent agencies, United States Housing Act of 1937, as titled 'An Act relating to the construction of and any other departments or agencies of amended. school facilities in areas affected by Federal the Federal Government having powers, activities, and for other purposes', approved functions, or duties with respect to housing

"Report to Congress of information on September 23, 1950, as amended, is hereby under this or any other law shall exercise

housing amended by adding the following new sen- such powers, functions, or duties in such "SEC. 817. The annual report made by the tence at the end thereof: 'In any case where manner as, consistent with the requirements Housing and Home Finance Administrator to such facilities are or have been damaged or thereof, will facilitate progress in the reduc- the President for submission to the Congress destroyed by fire or other casualty after they

tion of the vulnerability of congested urban on all operations provided for by section 802 have become eligible for such transfer but areas to enemy attack.

hereof shall contain pertinent information before such transfer has been completed, the “SEC. 812. Title V of the Housing Act of

with respect to all projects for which any head of the Federal department or agency

1949, as amended, is hereby amended as loan, contribution, or grant has been made may assign or pay to such local educational follows:

by the Housing and Home Finance Agency, agency, solely for use in repairing or recon

“(a) At the end of the first sentence of

including the amount of loans, contributions structing such facilities, all or any part of section 511 strike '$8,500,000' and insert

and grants contracted for, and shall also conany insurance receipts in connection with $100,000,000'.

tain pertinent information with respect to such casualty which are payable or have

all builders' cost certifications required by been paid in consideration of premiums

"(b) In section 512, strike '$170,000' and

section 227 of the National Housing Act, as insert ($2,000,000'. which such local educational agency has ad

amended, including information as to the vanced for the benefit of the United States.'

"(c) In section 513, strike ($850,000' and

amounts paid by mortgagors to mortgagees “(b) The third sentence of section 401 (a) insert ($10,000,000'.

for application to the reduction of the prinof title IV of the Housing Act of 1950, as

SEC. 813. Section 504 of the Housing Act

cipal obligations of the mortgages pursuant amended, is hereby amended by striking out of 1950, as amended, is hereby repealed.

to that section. the word 'made' and inserting the words 'is


Act controlling approved by the Administrator'. "SEC. 809. Notwithstanding the provisions Housing and Home Finance Agency (or any "SEC. 814. Every contract between the

"SEC. 818. Insofar as the provisions of any of any other law, (1) the Housing and Home official or constituent thereof) and any per

other law are inconsistent with the provisions Finance Administrator is authorized and di

of this Act, the provisions of this Act shall be son or local body (including any corporation rected to sell to the University of California,

controlling or public or private agency or body) for a at fair market value as determined by him,

Separability all of the properties, including land, com

loan, advance, grant, or contribution under
the United States Housing Act of 1937, as

"SEC. 819. Except as may be otherwise exprising war housing projects CAL-4041 and amended, or the Housing Act of 1949, as

pressly provided in this Act, all powers and 4042 known as Canyon Crest Homes located amended, shall provide that such person or

authorities conferred by this Act shall be in Riverside County, California; (2) the Public Housing Commissioner is authorized to local body shall keep such records as the

cumulative and additional to and not in Housing and Home Finance Agency (or such

derogation of any powers and authorities permit the Housing Authority of the city official or constituent thereof) shall from

otherwise existing. Notwithstanding any of Columbia, South Carolina, to sell to the University of South Carolina, at fair market time to time prescribe, including records

other evidences of the intention of Congress, which permit a speedy and effective audit

it is hereby declared to be the controlling value as determined by him, all of the propand will fully disclose the amount and the

intent of Congress that if any provisions of erty, including land, comprising the seventy

this Act, or the application thereof to any disposition by such person or local body of four-unit housing project Numbered SC-2-5 the proceeds of the loan, advance, grant, or

persons or circumstances, shall be adjudged known as University Terrace, located in contribution, or any supplement thereto, the

by any court of competent jurisdiction to be Columbia, South Carolina, and to use, with capital cost of any construction project for

invalid, such judgment shall not affect, imthe approval of the said Commissioner, the which any such loan, advance, grant, or con

pair, or invalidate the remainder of this Act proceeds of such sale as a loan for the develtribution is made, and the amount of any

or its application to other persons and opment of other low-rent housing in the

circumstances." private or other non-Federal funds used or city of Columbia, South Carolina, in regrants-in-aid made for or in connection with

And the Senate agree to the same. placement of said project Numbered SC-2–5, any such project. No mortgage covering

JESSE P. WOLCOTT, under terms and conditions which will be new or rehabilitated multifamily housing

RALPH A. GAMBLE, satisfactory to the Public Housing Commis(as defined in section 227 of the National

HENRY O. TALLE, sioner and which will, in his opinion, proHousing Act, as amended) shall be insured

CLARENCE E. KILBURN, tect the interest of the United States, and unless the mortgagor certifies that he will

Managers on the Part of the House. the annual contributions now contracted for keep such records as are prescribed by the

HOMER E. CAPEHART, in respect to project Numbered SC-2-5 shall Federal Housing Commissioner at the time

JOHN W. BRICKER, continue to be available and may be conof the certification and that they will be

WALLACE F. BENNETT, tracted for in respect to such other low-rent kept in such form as to permit a speedy

BURNET R. MAYBANK, housing; and (3) the Housing and Home and effective audit. The Housing and Home

A. WILLIS ROBERTSON, Finance Administrator is authorized and

Finance Agency or any official or constituent directed to convey, without monetary con

Managers on the Part of the Senate. agency thereof shall have access to and the sideration, to the Housing Authority of

right to examine and audit such records. Saint Louis County, Missouri, all of the right,

STATEMENT This section shall become effective on the title, and interest of the United States in first day after the first full calendar month

The managers on the part of the House and to the one hundred and fifty-six housing following the date of approval of the Hous

at the conference on the disagreeing votes of units in public housing project Numbered ing Act of 1954.

the two Houses on the amendment of the MO-V--23153.

Senate to the bill (H. R. 7839) to aid in the "SEC. 810. Notwithstanding the provisions "Applicants for assistance required to submit

provision and improvement of housing, the of any other law, the Housing and Home


elimination and prevention of slums, and Finance Administrator is authorized to sell "SEC. 815. Every contract for a loan, grant, the conservation and development of urban and convey all right, title and interest of or contribution under the United States communities, submit the following statethe United States (including any off-site Housing Act of 1937, as amended, or title I ment in explanation of the effect of the aceasements) at fair market value as deter- of the Housing Act of 1949, as amended, for tion agreed upon by the conferees and recommined by him, in and to war housing project the construction of a project shall require mended in the accompanying conference reCONN-6029, known as Westfield Heights, the submission of specifications with respect port: containing one hundred and thirty dwelling to such construction prior to the authoriza- The Senate struck out all of the House bill units on approximately twenty-three and tion for the award of the construction con- after the enacting clause and inserted a subnineteen one-hundredths acres of land in tract and the submission of data with re- stitute amendment. The committee of conWethersfield, Connecticut, and CONN-6125, spect to the acquisition of land prior to the ference has agreed to a substitute for both known as Drum Hill Park, containing one authorization to acquire such land.

the House bill and the Senate amendment. Except for technical, clarifying, and con- The Senate amendment contained a num- its loan to value ratio provision to only new forming changes, the following statement ex- ber of provisions, which were not contained construction and on existing construction plains the differences between the House bill in the House bill, with respect to FHA title retained the existing maximum mortgage and the substitute agreed to in conference. I insurance of home repair and improvement ratio of 80 percent of value. The House bill GENERAL STATEMENT

loans which are designed to prevent abuses provided a maximum maturity of 30 years

that have occurred in this program. One of on mortgages of 1-to-4-family homes and Shortly after passage of the House bill, in

these provisions would place the lender in a made such maturity applicable to both existformation became available with respect to

position of coinsuror through limiting title ing and new homes. The Senate amendalleged serious irregularities and abuses that

I insurance coverage to reimbursement of ment provided a maximum maturity on have occurred under FHA programs, par

only 80 percent of the loss on any individual ticularly the title I small property improve

mortgages for new homes of 30 years, and loan. The conference substitute retains the ment insurance program and the financing principle of this provision but increases the

required that on existing homes the mort

gage maturity be reduced from 30 years by of privately owned rental-housing projects

FHA insurance coverage to 90 percent of the one year for each of the first 10 years of insured under section 608 of the National

loss on any individual loan. The committee age, so that an existing dwelling which was Housing Act. As the Senate Banking and

of conference is of the opinion that limiting built 10 or more years ago could not be mortCurrency Committee had not yet reported

the coverage of losses to 80 percent on any gaged for a term exceeding 20 years. the proposed Housing Act of 1954 that com

individual loan might prove too restrictive With respect to new housing the confermittee took immediate cognizance of the al

particularly to small lenders. At the same ence substitute provides for a ratio of loan legations and made a preliminary investiga

time an insurance coverage limited to 90 to value of 95 percent of the first $9,000 of tion of these charges to ascertain what

percent would still retain a measure of self value and 75 percent of the excess over $9,000, changes should be made in the Housing Act

interest on the part of the lender in each and authorizes the President to increase the of 1954 to protect against the abuses which

loan in an amount sufficient to induce more $9,000 amount up to not to exceed $10,000 had been disclosed. Meanwhile the House careful lending operations.

if, after taking into consideration the genCommittee on Banking and Currency held a

Other provisions added by the Senate eral effect of such higher dollar amounts series of informal meetings with representa

amendment would (1) limit the granting of upon conditions in the building industry tives of the Housing and Home Finance

FHA title I insurance to supervised lenders and upon the national economy, he deterAgency, the FHA, and the Department of

approved by FHA, or to such other lenders mines such action to be in the public inJustice to review the nature and extent of

as (on the basis of their credit and their terest. The maximum dollar mortgage allegations made and to consider proposals

experience and facilities to make and service limitations are the same as those provided made by the Agency to strengthen the Na

this type of loan) FHA approved; (2) restrict in the House bill. tional Housing Act to prevent reoccurrence

items eligible for FHA title I insurance to With respect to existing housing the conof abuses. One of the purposes of these

those which substantially protect or improve ference substitute provides for a loan to informal meetings was to acquaint the mem

basic livability or utility of the property; (3) value ratio of 90 percent of the first $9,000 bers of the House Banking and Currency write into law restrictive features of present of value plus 75 percent of the balance in Committee, who would be members of the

FHA title I regulations with respect to dealer excess of $9,000. It likewise provides for committee of conference, with facts which

approval, maintenance of dealer file, 6-day Presidential authority to increase the $9,000 had been developed and corrective proposals

waiting period prior to disbursement, and figure to $10,000, and the dollar mortgage which were being made in order that the

requirements with respect to completion maxima are the same as those applicable House conferees would be in a better posi

certificates; (4) prevent use of FHA title I to new housing. tion to evaluate the many corrective pro

loans on new homes until completed and oc- With respect to mortgage maturities the visions which were added to the House bill

cupied for 6 months, and (5) prevent multi- conference substitute provided a maximum by the Senate amendment. Some of these

ple FHA title I loans on the same structure maturity of 30 years or three-quarters of the changes resulted from proposals made by

with the aggregate balance in excess of the FHA Commissioner's estimate of the rethe Senate Banking and Currency Commit

maximum statutory dollar limitation. The maining life of the building improvements, tee in reporting the bill and others resulted

conference substitute retains these pro- whichever is the lesser. The committee of from amendments made to the bill while it

visions of the Senate amendment with the conference has been informed that FHA was under consideration by the Senate.

exception of the provision which would write presently requires that the mortgage maturThe committee of conference throughout into law restrictive features of present FHA ity not exceed three-quarters of the remainits extensive deliberations has carefully title I regulations. The committee of con- ing economic life of the house whether new weighed the changes proposed by the Sen- ference was of the opinion that allowing

or old. In writing this limitation into the ate amendment to the House passed bill. such restrictive provisions to be covered by statute the Committee of Conference desires Throughout the conference there was com- regulation rather than on a statutory basis to place this safeguard in the law to make it plete agreement that while there was neces- was desirable from the standpoint of admin- clear that houses, especially old houses, are sity for strengthening the housing laws to istration of the insurance program.

not to be financed for a term which would prevent the reoccurrence of past abuses, it The conference substitute also allows a increase the Government's risk as insurer of was also imperative that the changes made

reasonable time—the first day after the first the mortgage. not be of such a nature as to make our Fed- full calendar month following the date of Although in most cases "mortgaging-out" eral housing laws unworkable or as seriously approval of the Housing Act of 1954—for the is not applicable to sales housing, it is a to impair the assistance which they should preparation, issuance, and printing of FHA possibility under certain circumstances properly give to the encouragement and con- rules, regulations, forms, and instructions where the builder of sales housing might tinuation of a high volume of housing pro- and their distribution to lenders operating actually become the mortgagor of the propduction and housing improvements for our under the title I program throughout the erty. This could happen only when the people. country.

builder, having built the homes, was unable FHA TITLE I INSURANCE OF HOME REPAIR AND


immediately to dispose of them and had IMPROVEMENT LOANS FHA insurance of 1-to-4-family sales hous

to close out the mortgage in his own name, The House bill provided that a home reing is authorized by section 203 of the Na

thus becoming the mortgagor. In order to pair or improvement loan could be insured tional Housing Act. Both the House bill and

provide an effective statutory safeguard in in an amount up to $3,000 in place of the the Senate amendment provided changes in

such cases the conference substitute con$2,500 limitation in existing law, and proexisting law with respect to maximum ratios

tains a provision limiting the maximum loan vided for extension of maturity on such inof loans to values and maximum mortgage

to value ratio where the builder becomes amounts. sured loans from the 3 years and 32 day

The House bill provided for a

the mortgagor to not to exceed 85 percent limit of existing law to a maximum maturratio of loan to value of 95 percent on the

of the mortgage loan which an owner-occu

pant could obtain. first $10,000 plus 75 percent of the excess

It is the further underity of 5 years and 32 days. Under existing law FHA title I insurance may also be obtained over $8,000 (actually this $8,000 figure should

standing of the committee of conference on loans to finance the improvement or conbe $10,000 but, through inadvertence, was

that, in such cases where a builder is conversion of existing structures used or to be not included in the amendment to these

structing FHA sales housing and becomes used as dwellings for two or more families.

the mortgagor because of inability to sell provisions adopted by the House). The SenOn such loans existing law limits the amount ate amendment provided for a ratio of loan

his houses, the FHA limits such builder in to $10,000 and the maturity to 7 years and to value of 95 percent of the first $8,000 plus

further participation under its programs. 32 days. The House bill provided that the 75 percent of the balance in excess of $8,000.

The committee of conference desires that amount of such a loan could be either $10,000 Maximum mortgage amounts were also

this procedure be continued not only to asor $1,500 per family unit, whichever is greatlimited to $20,000 in the case of a one- or

sure that sales housing is constructed for er, and increased the permissible maturity

sales purposes, but also as an effective methtwo-family dwelling, $27,500 in the case of to 10 years and 32 days. The Senate amend

od to prevent misuse of the FHA insurance a three-family dwelling and $35,000 in the

system. ment struck out the provisions in the House

case of a four-family dwelling under the bill extending the maturities and increasing

provisions of the House bill; the Senate FHA APPRAISALS OF LONG-TERM ECONOMIC VALUE the amounts of title I insured loans, thus in amendment placed these limitations at

Historically, the fundamental soundness effect retaining the limitations of existing $18,000, $24,000 and $30,000 respectively. The

of the whole concept of the FHA home mortlaw. The conference substitute likewise House bill made the new ratios of loans to

gage insurance system has rested on the inleaves these provisions of existing law un- values applicable to both new and existing tegrity of its appraisal system as a measurechanged.

dwellings. The Senate amendment limited ment of the long-term economic value of a

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