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appointment of a conservator or receiver shall be made except pursuant to a formal resolution of the Board stating the grounds therefor and except notice thereof is given to said association stating the grounds therefor and until an opportunity for an administrative hearing thereon is afforded to said association. Such hearing shall be held in accordance with the provisions of the Administrative Procedure Act and shall be subject to review as therein provided and the review by the court shall be upon the weight of the evidence. A conservator shall have all the powers of the members, the directors, and officers of the Federal association and shall be authorized to operate it in its own name or conserve its assets in the manner and to the extent authorized by the Board. The Board shall appoint only the Federal Savings and Loan Insurance Corporation as receiver for any Federal savings and loan association, which shall have power as receiver to buy at its own sale subject to approval by the Board. With the consent of the association expressed by a resolution of the board of directors or of its members, the Board is authorized to appoint a conservator or receiver for a Federal association without notice and without hearing. The Board shall have power to make rules and regulations for the reorganization, merger, and liquidation of Federal associations and for such associations in conservatorship and receivership and for the conduct of conservatorships and receiverships. Whenever a Supervisory Representative in Charge, conservator, or receiver, appointed by the Board pursuant to the provisions of this section, demands possession of the property, business and assets of any association, the refusal of any officer, agent, employee, or director of such association to comply with the demand shall be punishable by a fine of not more than $1,000 or by imprisonment for not more than one year or both by such fine and imprisonment.'; and "(3) by striking out the second paragraph of subsection (c) of section 5 and inserting ir lieu thereof the following new paragraph: "Without regard to any other provision of this subsection except the area requirement such associations are authorized to invest a sum not in excess of 15 per centum of the assets of such association in loans insured under title I of the National Housing Act, as amended, in unsecured loans insured or guaranteed under the provisions of the Servicemen's Readjustment Act of 1944, as amended, and in other loans for property alteration, repair, or improvement: Provided, That no such loan shall be made in excess of $2,500.'

"TITLE VI-VOLUNTARY HOME MORTGAGE
CREDIT PROGRAM

"Declaration of policy "SEC. 601. It is declared to be the policy of Congress

"(a) to seek the constant improvement of the living conditions of all the people under a strong, free, competitive economy, and to take such action as will facilitate the operation of that economy to provide adequate housing for all the people and to meet the demands for new building;

"(b) to provide a means of financing housing within the framework of our private enterprise system and without vast expenditures of public moneys;

"(c) to encourage and facilitate the flow of funds for housing credit into remote areas and small communities, where such funds are not available in adequate supply; and

"(d) to assist in the development of a program consonant with sound underwriting principles, whereby private financing institutions engaged in mortgage lending can make a maximum contribution to the economic stability and growth of the Nation through extension of the market for insured or guaranteed mortgage loans.

"Definitions

"SEC. 602. As used in this title, the following terms shall have the meanings respectively ascribed to them below, and, unless the context clearly indicates otherwise, shall include the plural as well as the singular number:

"(a) 'Insured or guaranteed mortgage loan' means any loan made for the construction or purchase of a family dwelling or dwellings and which is (1) guaranteed or insured under the Servicemen's Readjustment Act of 1944, as amended, or (2) secured by a mortgage insured under the National Housing Act, as amended.

"(b) 'Private financing institutions' means life-insurance companies, savings banks, commercial banks, savings and loan associations (including cooperative banks, homestead association, and building and loan associations), and mortgage companies.

"(c) 'Administrator' means the Housing and Home Finance Administrator.

"(d) 'State' means the several States, the District of Columbia, the Commonwealth of Puerto Rico, and the Territories and possessions of the United States.

"National Voluntary Mortgage Credit
Extension Committee

"SEC. 603. There is hereby established a National Voluntary Mortgage Credit Extension Committee, hereinafter called the 'National Committee', which shall consist of the Housing and Home Finance Administrator, who shall act as Chairman of the National Committee, and fourteen other persons appointed by the Administrator as follows:

"(a) Two representatives of each type of private financing institutions;

"(b) Two representatives of builders of residential properties; and

"(c) Two representatives of real estate boards.

"The Administrator shall also request the Board of Governors of the Federal Reserve System to designate a representative of the Board to serve on the National Committee in an advisory capacity.

"The Administrator shall also request the Administrator of Veterans' Affairs to designate a representative to serve on the National Committee in an advisory capacity.

"The Administrator shall also request the Home Loan Bank Board to designate a representative of the Board to serve on the National Committee in an advisory capacity.

"In selecting and appointing the members of the National Committee, the Administrator shall have due regard to fair representation thereon for small, medium, and large private financing institutions and for different geographical areas. Members of the National Committee appointed by the Administrator shall serve on a voluntary basis.

"Regional subcommittees

"SEC. 604. (a) As soon as practicable, the National Committee shall divide the United States into regions conforming generally to the Federal Reserve districts. The Administrator, after consultation with the other members of the National Committee, shall, for each such region, designate five or more persons representing private financing institutions and builders of residential properties in such region to serve as a regional subcommittee of the National Committee for the purpose of assisting in placing with private financing institutions insured or guaranteed mortgage loans as hereinafter set forth. In designating the members of each such regional subcommittee,

the Administrator shall have due regard to fair representation thereon for small, medium, and large financing institutions and builders of residential properties and for different geographical areas within such regions. Members of each regional subcommittee shall serve on a voluntary basis.

"(b) The Administrator is authorized and directed, upon the request of a regional sub

committee, to provide such subcommittee with a suitable office and meeting place and to furnish to the subcommittee such staff assistance as may be reasonably necessary for the purpose of assisting it in the performance of the functions hereinafter set forth. In complying with these requirements, the Administrator may act through and may uti

lize the services of the several Federal homeloan banks.

"Function of National Committee and of regional subcommittees

"SEC. 605. It shall be the function of the National Committee and the regional subcommittees to facilitate the flow of funds for residential mortgage loans into areas or communities where there may be a shortage of local capital for, or inadequate facilities for access to, such loans, and to achieve the maximum utilization of the facilities of private financing institutions for this purpose by soliciting and obtaining the cooperation of all such private financing institutions in extending credit for insured or guaranteed mortgage loans wherever consistent with sound underwriting principles.

"SEC. 606. The National Committee shall study and review the demand and supply of funds for residential mortgage loans in all parts of the country, and shall receive reports from and correlate the activities of the regional subcommittees. It shall also periodically inform the Commissioner of the Federal Housing Administration and the Administrator of Veterans' Affairs concerning the results of the studies and of the progress of the National Committee and regional subcommittees in performing their function, and shall to the extent practicable maintain liaison with State and local Government housing officials in order that they may be fully apprized of the function and work of the National Committee and regional subcommittees. The Administrator shall, not later than April 1 in each year, make a full report of the operations of the National Committee and the regional subcommittees to the Congress.

"SEC. 607. (a) Each regional subcommittee shall study and review the demand and supply of funds for residential mortgage loans in its region, shall analyze cases of unsatisfied demand for mortgage credit, and shall report to the National Committee the results of its study and analysis. It shall also maintain liaison with officers of the Federal Housing Administration and of the Veterans' Administration within its region in order that such officers may be fully apprized of the function and work of the National Committee and regional subcommittees. It shall request such officers to supply to the subcommittee information regarding cases of unsatisfied demand for mortgage credit for loans eligible for insurance under the National Housing Act, as amended, or for insurance or guaranty under the Servicemen's Readjustment Act of 1944, as amended. Such officers are authorized to furnish such information to such subcommittee.

"(b) A regional subcommittee shall render assistance to any applicant for a loan, the proceeds of which are to be used for the construction or purchase of a family dwelling or dwellings, upon receipt of a certificate from such applicant, stating that

"(1) application for such loan has been made to at least two private financing institutions, or in the alternative to such private financing institution or institutions as may be reasonably accessible to the applicant;

"(2) the applicant has been informed by the above-mentioned private financing institution or institutions that funds for mortgage credit on the loan are unavailable; and

"(3) the applicant is eligible for insurance or guaranty under the Servicemen's Readjustment Act of 1944, as amended, or consents that the mortgage to be issued as

security for the loan be insured under the ning resources, the Administrator is authorNational Housing Act, as amended.

Upon receipt of such certification from an applicant the regional subcommittee shall circularize private financing institutions in the region or elsewhere and shall use its best efforts to enable the applicant to place the loan with a private financing institution. It shall render similar assistance to any applicant for a loan, the proceeds of which are to be used for the construction or purchase of a family dwelling or dwellings, upon receipt of information from the Veterans' Administration to the effect that the applicant has applied for a direct loan, if he is eligible for such a loan, and that he is eligible for insurance or guaranty, under the Servicemen's Readjustment Act of 1944, as amended. In order to encourage small or local private financing institutions to originate insured or guaranteed mortgage loans, it may also render similar assistance to private financing institutions in locating other private financing institutions willing to repurchase such mortgage loans on a mutually satisfactory basis.

"(c) In the performance of its responsibilities under subsection (b) of this section, a regional subcommittee may at its discretion (1) request the National Committee to obtain for it the aid of other regional subcommittees in seeking sources of mortgage credit, and (2) request and obtain voluntary assurances from any one or more private financing institutions that they will make funds available for insured or guaranteed mortgage loans in any specified area or areas within its region in which the subcommittee finds that there is a lack of adequate credit facilities for such loans.

"Regulations of Administrator

"SEC. 608. The Administrator, after consultation with the National Committee, shall have power to issue general rules and procedures for the effective implementation of this title and for the functioning of the regional subcommittees, pursuant to the provisions hereof and not in conflict herewith. "General provisions

"SEC. 609. No act pursuant to the provisions of this title and which occurs while this title is in effect shall be construed to be within the prohibitions of the antitrust laws or the Federal Trade Commission Act of the United States. Service as a member of the National Committee or of any regional subcommittee is not to be construed as holding any office or employment with the Government of the United States. The Ad

ministrator is authorized and directed, upon the request of the National Committee, to provide such Committee with a suitable office and meeting place and to furnish to the Committee such staff assistance as may be reasonably necessary for the purpose of assisting it in the performance of the functions of such Committee. Funds available to the Administrator for administrative expenses shall be available for all expenses necessary in carrying out the provisions of this title, including expenses of persons serving as members of any committee or subcommittee established pursuant to this title for communications, transportation, and not to exceed $25 per diem in lieu of subsistence when away from their homes or regular places of business in connection with the business of such committee or subcommittee.

"SEC. 610. (a) This title and all authority conferred hereunder shall terminate at the close of June 30, 1957.

"(b) Notwithstanding subsection (a), Congress, by concurrent resolution, may terminate this title prior to the termination date hereinabove provided for. "TITLE VII-URBAN PLANNING AND RESERVE OF PLANNED PUBLIC WORKS

"Urban planning

"SEC. 701. To facilitate urban planning for smaller communities lacking adequate plan

ized to make planning grants to State planning agencies for the provision of planning use assistance (including surveys, land studies, urban renewal plans, technical services and other planning work, but excluding plans for specific public works) to cities and other municipalities having a population of less than 25,000 according to the latest decennial census. The Administrator is further authorized to make planning grants for similar planning work in metropolitan and regional areas to official State, metropolitan, or regional planning agencies empowered under State or local laws to perform such planning. Any grant made under this section shall not exceed 50 per centum of the estimated cost of the work for which the grant is made and shall be subject to terms and conditions prescribed by the Administrator to carry out this section. The Administrator is authorized, notwithstanding the provisions of section 3648 of the Revised Statutes, as amended, to make advance or progress payments on account of any planning grant made under this section. There is hereby authorized to be appropriated not exceeding $5,000,000 to carry out the purposes of this section, and any amounts so appropriated shall remain available until expended.

"Reserve of planned public works

"SEC. 702. (a) In order (1) to encourage municipalities and other public agencies to maintain a continuing and adequate reserve of planned public works the construction of which can rapidly be commenced whenever the economic situation may make such action desirable, and (2) to attain maximum economy and efficiency in the planning and construction of local, State, and Federal public works, the Administrator is hereby authorized, during the period of three years commencing on July 1, 1954, to make advances to public agencies from funds available under this section (notwithstanding the provisions of section 3648 of the Revised Statutes, as amended) to aid in financing the cost of engineering and architectural surveys, designs, plans, working drawings, specifications, or other action preliminary to and in preparation for the construction of public works: Provided, That the making of advances hereunder shall not in any way commit the Congress to appropriate funds to assist in financing the construction of any public works so planned.

"(b) No advance shall be made hereunder with respect to any individual project unless it conforms to an overall State, local, or

regional plan approved by a competent State, local, or regional authority, and unless the public agency formally contracts with the Federal Government to complete the plan preparation promptly and to repay such advance when due. Subsequent to approval and prior to disbursement of any Federal funds for the purpose of advance planning, the applicant shall establish a separate planning account into which all Federal and applicant funds estimated to be required for plan preparation shall be placed.

"(c) Advances under this section to any public agency shall be repaid without interest by such agency when the construction of the public works is undertaken or started: Provided, That in the event repayment is not made promptly such unpaid sum shall bear interest at the rate of 4 per centum per annum from the date of the Government's demand for repayment to the date of payment thereof by the public agency. All sums so repaid shall be covered into the Treasury as miscellaneous receipts. "(d) The Administrator is authorized to prescribe rules and regulations to carry out the purposes of this section.

"(e) There is hereby authorized to be appropriated not exceeding $10,000,000 to carry out the purposes of this section, and

any amounts so appropriated shall remain available until expended: Provided, That not to exceed 1 per centum of the funds appropriated under this section may be used for the purpose of surveying the status and current volume of advanced public works planning among the several States and their subdivisions, such surveys to be carried out by the Administrator in cooperation with the Council of Economic Advisers in the Executive Office of the President. Not more than 5 per centum of the funds so appropriated shall be expended in any one State. "Definitions

"SEC. 703. As used in this title, (1) the term 'State' shall mean any State, the District of Columbia, the Commonwealth of Puerto Rico, and any territory or possession of the United States; (2) the term 'Administrator' shall mean the Housing and Home Finance Administrator; (3) the term 'public works' shall include any public works other than housing; and (4) the term 'public agency' or 'public agencies' shall mean any State, as herein defined, or any public agency or political subdivision therein.

"TITLE VIII-MISCELLANEOUS PROVISIONS "SEC. 801. (a) The Federal Housing Commissioner and the Administrator of Veterans' Affairs, respectively, are hereby authorized and directed to require that, in connection with any property upon which there is located a dwelling designed principally for not more than a four-family residence and which is approved for mortgage insurance or guaranty prior to the beginning of construction, the seller or builder, and such other person as may be required by the said Commissioner or Administrator to become warrantor, shall deliver to the purchaser or owner of such property a warranty that the dwelling is constructed in substantial conformity with the plans and specifications (including any amendments thereof, or changes and variations therein, which have been approved in writing by the Federal Housing Commissioner or the Administrator of Veterans' Affairs) on which the Federal Housing Commissioner or the Administrator of Veterans' Affairs based his valuation of the dwelling: Provided, That the Federal Housing Commissioner or the Administrator of Veterans' Affairs shall deliver to the builder, seller, or other warrantor his written approval (which shall be conclusive evidence of such approval) of any amendment of, or change or variation in, such plans and specifications which the Commissioner or the Administrator deems to be a substantial amendment thereof, or change or variation therein, and shall file a copy of such written approval with such plans and specifications: Provided further, That such warranty shall apply only with respect to such instances of substantial nonconformity to such approved plans and specifications (including any amendments thereof, or changes or variations therein, which have been approved in writing, as provided herein, by the Federal Housing Commissioner or the Administrator of Veterans' Affairs) as to which the purchaser or homeowner has given written notice to the warrantor within one year from the date of conveyance of title to, or initial occupancy of, the dwelling, whichever first occurs: Provided further, That such warranty shall be in addition to, and not in derogation of, all other rights and privileges which such purchaser or owner may have under any other law or instrument: And provided further, That the provisions of this section shall apply to any such property covered by a mortgage insured or guaranteed by the Federal Housing Commissioner or the Administrator of Veterans' Affairs on and after October 1, 1954, unless such mortgage is insured or guaranteed pursuant to a commitment therefor made prior to October 1, 1954.

"(b) The Federal Housing Commissioner and the Administrator of Veterans' Affairs, respectively, are further directed to permit

copies of the plans and specifications (including written approvals of any amendments thereof, or changes or variations therein, as provided herein) for dwellings in connection with which warranties are required by subsection (a) of this section to be made available in their appropriate local offices for inspection or for copying by any purchaser, homeowner, or warrantor during such hours or periods of time as the said Commissioner and Administrator may determine to be reasonable.

"SEC. 802. (a) The Housing and Home Finance Administrator shall, as soon as practicable during each calendar year, make a report to the President for submission to the Congress on all operations under the jurisdiction of the Housing and Home Finance Agency during the previous calendar year.

"(b) Section 311 of 'An Act to expedite the provision of housing in connection with national defense, and for other purposes', approved October 14, 1940, as amended; section 6 of 'An Act to provide for the advance planning of non-Federal public works', approved October 13, 1949, as amended; and sections 5 and 402 (f) of the National Housing Act, as amended, are hereby repealed.

"(c) The National Housing Act, as amended, is hereby amended

"(1) by striking the heading 'ANNUAL REPORT' immediately after section 4 and inserting 'TAXATION'; and

"(2) by striking from subsection (e) of section 406 the word 'Congress' and inserting 'Housing and Home Finance Administrator.'

"(d) The first sentence of section 7 (b) of the United States Housing Act of 1937, as amended, is hereby amended to read as follows: "The annual report of the Housing and Home Finance Administrator to the President for submission to the Congress on the operations of the Housing and Home Finance Agency shall include a report on the operations and expenses of the Authority, including loans, contributions, and grants made or contracted for, low-rent housing and slum clearance projects undertaken, and the assets and liabilities of the Authority.'

"(e) Section 106 (a) of the Housing Act of 1949, as amended, is hereby amended by striking; and' at the end of paragraph (3) thereof, inserting a period in lieu thereof, and striking paragraph (4).

"(f) The Federal Home Loan Bank Act, as amended, is hereby amended by striking the second sentence of section 20.

"SEC. 803. Section 501 (b) of the Servicemen's Readjustment Act of 1944, as amended, is hereby amended to read as follows:

"(b) Any loan made to a veteran for the purposes specified in subsection (a) of this section 501 may, notwithstanding the provisions of subsection (a) of section 500 of this title relating to the percentage or aggregate amount of loan to be guaranteed, be guaranteed, if otherwise made pursuant to the provisions of this title, in an amount not exceeding 60 per centum of the loan: Provided, That the aggregate amount of any guaranties to a veteran under this title shall not exceed $7,500, nor shall any gratuities payable under subsection (c) of section 500 of this title exceed the amount which is payable on loans guaranteed in accordance with the maxima provided for in subsection (a) of section 500 of this title: And provided further, That no such loan for the repair, alteration, or improvement of property shall be insured or guaranteed under this Act unless such repair, alteration, or improvement substantially protects or improves the basic livability or utility of the property involved.'

"SEC. 804. Section 108 of the Reconstruction Finance Corporation Liquidation Act (67 Stat. 230) is amended as follows:

"(1) Strike out from subsection (a) thereof the words 'the President, through such officer or agency of the Government (other than the Reconstruction Finance Corpora

tion) as he may designate,' and insert in lieu thereof the words 'the Housing and Home Finance Administrator'.

"(2) Strike out all of subsection (b) and insert in lieu thereof the following:

"(b) For the purposes of this section, notwithstanding any other provision of law, the Housing and Home Finance Administrator is authorized to obtain from a revolving fund to be established in the Treasury of the United States not to exceed a total of $50,000,000 outstanding at any one time. For this purpose there is hereby authorized to be appropriated to such revolving fund in the Treasury the amount of $50,000,000. Advances from the revolving fund shall be made to the Housing and Home Finance Administrator upon his request, and such advances together with receipts under this section shall be available for all necessary expenses, including administrative expenses, under this section. The Housing and Home Finance Administrator shall pay into the Treasury as miscellaneous receipts, at the close of each fiscal year, interest on the amount of advances outstanding, at a rate determined by the Secretary of the Treasury, taking into consideration the current average rate on outstanding interest-bearing marketable public debt obligations of the United States of comparable maturities. As the Housing and Home Finance Administrator repays principal sums advanced from the revolving fund pursuant to this section, such repayments shall be made to the revolving fund.'

"(3) Strike out from subsection (c) thereof the words 'officer or agency designated by the President' and insert in lieu thereof the words 'Housing and Home Finance Administrator'.

"(4) Strike out from subsection (d) thereof '1955' and insert in lieu thereof '1956'. "SEC. 805. The Act entitled 'An Act to expedite the provision of housing in connection with national defense, and for other purposes', approved October 14, 1940, as amended, is hereby amended

"(1) by adding the following at the end of section 605 (a):

"In any city in which, on March 1, 1953, there were more than ten thousand temporary housing units held by the United States of America, or in any two contiguous cities in one of which there were on such date more than ten thousand temporary housing units so held, the Administrator may acquire, by purchase or condemnation, a fee simple title to any lands in which the Administrator holds a leasehold interest, or other interest less than a fee simple, acquired by the Federal Government for national defense or war housing or for veterans' housing where (1) the Administrator finds that the acquisition by him of a fee simple title in the land will expedite the disposal or removal of temporary housing under his jurisdiction by facilitating the availability of improved sites for privately owned housing needed to replace such temporary housing, (2) the city or a local public agency has, in accordance with authority under State law, entered into a firm agreement to purchase the land so acquired at a price determined by the Administrator to be fair, but in no event less than the estimated cost to the Federal Government of acquiring the fee simple title (including an estimated amount to cover legal and overhead expenses of such acquisition) as determined by the Administrator, (3) the city or local public agency has furnished evidence satisfactory to the Administrator that it has or will have funds available to make all agreedupon payments to the Federal Government and to protect the Federal Government against any loss resulting from the acquisition of fee simple title, (4) the city or local public agency has furnished assurances satisfactory to the Administrator that the land will be made available to private enterprise for development, in accordance with local zoning and other laws, for predominantly

residential uses, and (5) the city or local public agency has furnished assurances satisfactory to the Administrator that no individual who is employed by, or is an official of, the government of the city in which the land is located, or any agency thereof, shall be permitted, directly or indirectly, to have any financial interest in the purchase or redevelopment of such land: Provided, That such acquisitions by the Administrator pursuant to this sentence shall be limited to not exceeding four hundred and twenty-five acres of land in the general area in which approximately one thousand five hundred units of temporary housing held by the United States of America were unoccupied on said date.';

"(2) by adding the following new subsection at the end of section 607:

"(g) The Administrator may dispose of any permanent war housing without regard to the preferences in subsections (b) and (c) of this section when he determines that (1) such housing, because of design or lack of amenities, is unsuitable for family dwelling use, or (2) it is being used at the time of disposition for other than dwelling purposes, or (3) it was offered, with preferences substantially similar to those provided in the Housing Act of 1950 (64 Stat. 48), to veterans and occupants prior to enactment of said Act.'; and

"(3) by adding the following new section at the end of title VI:

66

'SEC. 613. Upon a certification by the Secretary of the Interior that any surplus housing, classified by the Administrator as demountable, in the area of San Diego, California, is needed to provide dwelling accommodations for members of a tribe of Indians in Riverside County or San Diego County, California, the Administrator is hereby authorized, not withstanding any other provision of law, to transfer and convey such housing without consideration to such tribe, the members thereof, or the Secretary of the Interior in trust therefor, as the Secretary may prescribe: Provided, That the term housing as used in this section shall not include land.'

"SEC. 806. Subsection 302 (b) of Public Law 139, 82d Congress, as amended, is hereby amended by striking the second sentence thereof and adding the following:

"Any temporary housing constructed or acquired under this title which the Administrator determines to be no longer needed for use under this title shall, unless transferred to the Department of Defense pursuant to section 306 hereof, or reported as excess to the Administrator of the General Services Administration pursuant to the Federal Property and Administrative Services Act of 1949, as amended, be sold as soon as practicable to the highest responsible bidder after public advertising, except that if one or more of such bidders is a veteran purchasing a dwelling unit for his own occupancy the sale of such unit shall be made to the highest responsible bidder who is a veteran so purchasing: Provided, That the Housing and Home Finance Administrator may reject any bid for less than two-thirds of the appraised value as determined by him: Provided further, That the housing may be sold at fair value (as determined by the Housing and Home Finance Administrator) to a public body for public use: And provided further, That the housing structures shall be sold for removal from the site, except that they may be sold for use on the site if the governing body of the locality has adopted a resolution approving use of such structures on the site.'

"SEC. 807. Section 601 of the Housing Act of 1949 is hereby amended to read as follows: "'SEC. 601. The Housing and Home Finance Administrator and the head of each constituent agency of the Housing and Home Finance Agency is hereby authorized to establish such advisory committee or committees as each may deem necessary in carrying

out any of his functions, powers, and duties under this or any other Act or authorization. Service as a member of any such committee shall not constitute any form of service, employment, or action within the provisions of sections 281, 283, 284, or 1914 of title 18, United States Code, or within the provisions of section 190 of the Revised Statutes (5 U. S. C. 99). Persons serving without compensation as members of any such committee may be paid transportation expenses and not to exceed $25 per diem in lieu of subsistence, as authorized by section 5 of the Act of August 2, 1946 (5 U. S. C. 73b-2).'

"SEC. 808. (a) Section 202 of the Act entitled 'An Act relating to the construction of school facilities in areas affected by Federal activities, and for other purposes', approved September 23, 1950, as amended, is hereby amended by adding the following new sentence at the end thereof: 'In any case where such facilities are or have been damaged or destroyed by fire or other casualty after they have become eligible for such transfer but before such transfer has been completed, the head of the Federal department or agency may assign or pay to such local educational agency, solely for use in repairing or reconstructing such facilities, all or any part of any insurance receipts in connection with such casualty which are payable or have been paid in consideration of premiums which such local educational agency has advanced for the benefit of the United States.'

"(b) The third sentence of section 401 (a) of title IV of the Housing Act of 1950, as amended, is hereby amended by striking out the word 'made' and inserting the words 'is approved by the Administrator'.

"SEC. 809. Notwithstanding the provisions

hundred and twenty-five dwelling units on approximately fifty-two and thirty-three one-hundredths acres of land in Rocky Hill, Connecticut, to the housing authority of the town of Wethersfield, Connecticut, for use in providing moderate rental housing. Any sale pursuant to this section shall be on such terms and conditions as the Administrator shall determine: Provided, That full payment to the United States shall be required within a period of not to exceed thirty years with interest on unpaid balance at not to exceed 5 per centum per annum. "SEC. 811. The Housing and Home Finance Agency, including its constituent agencies, and any other departments or agencies of the Federal Government having powers, functions, or duties with respect to housing under this or any other law shall exercise such powers, functions, or duties in such manner as, consistent with the requirements thereof, will facilitate progress in the reduction of the vulnerability of congested urban areas to enemy attack.

"SEC. 812. Title V of the Housing Act of 1949, as amended, is hereby amended as follows:

"(a) At the end of the first sentence of section 511 strike $8,500,000' and insert '$100,000,000'.

"(b) In section 512, strike '$170,000' and insert '$2,000,000'.

"(c) In section 513, strike '$850,000' and insert '$10,000,000'.

"SEC. 813. Section 504 of the Housing Act of 1950, as amended, is hereby repealed.

"Records

"SEC. 814. Every contract between the

"Audits under Public Housing Act of 1937; Comptroller General

"SEC. 816. Every contract for loans or annual contributions under the United States Housing Act of 1937, as amended, shall provide that the Public Housing Commissioner and the Comptroller General of the United States, or any of their duly authorized representatives, shall, for the purpose of audit and examination, have access to any books, documents, papers, and records of the public housing agency entering into such contract that are pertinent to its operations with respect to financial assistance under the United States Housing Act of 1937, as amended.

"Report to Congress of information on

housing

"SEC. 817. The annual report made by the Housing and Home Finance Administrator to the President for submission to the Congress on all operations provided for by section 802 hereof shall contain pertinent information with respect to all projects for which any loan, contribution, or grant has been made by the Housing and Home Finance Agency, including the amount of loans, contributions and grants contracted for, and shall also contain pertinent information with respect to all builders' cost certifications required by section 227 of the National Housing Act, as amended, including information as to the amounts paid by mortgagors to mortgagees for application to the reduction of the principal obligations of the mortgages pursuant to that section.

"Act controlling

"SEC. 818. Insofar as the provisions of any

of any other law, (1) the Housing and Home Housing and Home Finance Agency (or any other law are inconsistent with the provisions

Finance Administrator is authorized and directed to sell to the University of California, at fair market value as determined by him, all of the properties, including land, comprising war housing projects CAL-4041 and 4042 known as Canyon Crest Homes located in Riverside County, California; (2) the Public Housing Commissioner is authorized to permit the Housing Authority of the city of Columbia, South Carolina, to sell to the University of South Carolina, at fair market value as determined by him, all of the property, including land, comprising the seventyfour-unit housing project Numbered SC-2-5 known as University Terrace, located in Columbia, South Carolina, and to use, with the approval of the said Commissioner, the proceeds of such sale as a loan for the development of other low-rent housing in the city of Columbia, South Carolina, in replacement of said project Numbered SC-2-5, under terms and conditions which will be satisfactory to the Public Housing Commissioner and which will, in his opinion, protect the interest of the United States, and the annual contributions now contracted for in respect to project Numbered SC-2-5 shall continue to be available and may be contracted for in respect to such other low-rent housing; and (3) the Housing and Home Finance Administrator is authorized and directed to convey, without monetary consideration, to the Housing Authority of Saint Louis County, Missouri, all of the right, title, and interest of the United States in and to the one hundred and fifty-six housing units in public housing project Numbered

MO-V-23153.

"SEC. 810. Notwithstanding the provisions of any other law, the Housing and Home Finance Administrator is authorized to sell and convey all right, title and interest of the United States (including any off-site easements) at fair market value as determined by him, in and to war housing project CONN-6029, known as Westfield Heights, containing one hundred and thirty dwelling units on approximately twenty-three and nineteen one-hundredths acres of land in Wethersfield, Connecticut, and CONN-6125, known as Drum Hill Park, containing one

official or constituent thereof) and any person or local body (including any corporation or public or private agency or body) for a loan, advance, grant, or contribution under the United States Housing Act of 1937, as amended, or the Housing Act of 1949, as amended, shall provide that such person or local body shall keep such records as the Housing and Home Finance Agency (or such official or constituent thereof) shall from time to time prescribe, including records which permit a speedy and effective audit and will fully disclose the amount and the disposition by such person or local body of the proceeds of the loan, advance, grant, or contribution, or any supplement thereto, the capital cost of any construction project for which any such loan, advance, grant, or contribution is made, and the amount of any private or other non-Federal funds used or grants-in-aid made for or in connection with any such project. No mortgage covering new or rehabilitated multifamily housing (as defined in section 227 of the National Housing Act, as amended) shall be insured unless the mortgagor certifies that he will keep such records as are prescribed by the Federal Housing Commissioner at the time of the certification and that they will be kept in such form as to permit a speedy and effective audit. The Housing and Home Finance Agency or any official or constituent agency thereof shall have access to and the right to examine and audit such records. This section shall become effective on the first day after the first full calendar month following the date of approval of the Housing Act of 1954.

"Applicants for assistance required to submit specifications

"SEC. 815. Every contract for a loan, grant, or contribution under the United States Housing Act of 1937, as amended, or title I of the Housing Act of 1949, as amended, for the construction of a project shall require the submission of specifications with respect to such construction prior to the authorization for the award of the construction contract and the submission of data with respect to the acquisition of land prior to the authorization to acquire such land.

of this Act, the provisions of this Act shall be controlling.

"Separability

"SEC. 819. Except as may be otherwise expressly provided in this Act, all powers and authorities conferred by this Act shall be cumulative and additional to and not in derogation of any powers and authorities otherwise existing. Notwithstanding any other evidences of the intention of Congress, it is hereby declared to be the controlling intent of Congress that if any provisions of this Act, or the application thereof to any persons or circumstances, shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder of this Act or its application to other persons and circumstances."

And the Senate agree to the same.

JESSE P. WOLCOTT,
RALPH A. GAMBLE,
HENRY O. TALLE,
CLARENCE E. KILBURN,

Managers on the Part of the House.
HOMER E. CAPEHART,
JOHN W. BRICKER,
WALLACE F. BENNETT,
BURNET R. MAYBANK,
A. WILLIS ROBERTSON,
Managers on the Part of the Senate.

STATEMENT

The managers on the part of the House at the conference on the disagreeing votes of the two Houses on the amendment of the Senate to the bill (H. R. 7839) to aid in the provision and improvement of housing, the elimination and prevention of slums, and the conservation and development of urban communities, submit the following statement in explanation of the effect of the action agreed upon by the conferees and recommended in the accompanying conference report:

The Senate struck out all of the House bill after the enacting clause and inserted a substitute amendment. The committee of conference has agreed to a substitute for both the House bill and the Senate amendment.

Except for technical, clarifying, and conforming changes, the following statement explains the differences between the House bill and the substitute agreed to in conference. GENERAL STATEMENT

Shortly after passage of the House bill, information became available with respect to alleged serious irregularities and abuses that have occurred under FHA programs, particularly the title I small property improvement insurance program and the financing of privately owned rental-housing projects insured under section 608 of the National Housing Act. As the Senate Banking and Currency Committee had not yet reported the proposed Housing Act of 1954 that committee took immediate cognizance of the allegations and made a preliminary investigation of these charges to ascertain what changes should be made in the Housing Act of 1954 to protect against the abuses which had been disclosed. Meanwhile the House Committee on Banking and Currency held a series of informal meetings with representatives of the Housing and Home Finance Agency, the FHA, and the Department of Justice to review the nature and extent of allegations made and to consider proposals made by the Agency to strengthen the National Housing Act to prevent reoccurrence of abuses. One of the purposes of these informal meetings was to acquaint the members of the House Banking and Currency Committee, who would be members of the committee of conference, with facts which had been developed and corrective proposals which were being made in order that the House conferees would be in a better position to evaluate the many corrective provisions which were added to the House bill by the Senate amendment. Some of these changes resulted from proposals made by the Senate Banking and Currency Committee in reporting the bill and others resulted from amendments made to the bill while it was under consideration by the Senate.

The committee of conference throughout its extensive deliberations has carefully weighed the changes proposed by the Senate amendment to the House passed bill. Throughout the conference there was complete agreement that while there was necessity for strengthening the housing laws to prevent the reoccurrence of past abuses, it was also imperative that the changes made not be of such a nature as to make our Federal housing laws unworkable or as seriously to impair the assistance which they should properly give to the encouragement and continuation of a high volume of housing production and housing improvements for our people.

FHA TITLE I INSURANCE OF HOME REPAIR AND IMPROVEMENT LOANS

The House bill provided that a home repair or improvement loan could be insured in an amount up to $3,000 in place of the $2,500 limitation in existing law, and provided for extension of maturity on such insured loans from the 3 years and 32 day limit of existing law to a maximum maturity of 5 years and 32 days. Under existing law FHA title I insurance may also be obtained on loans to finance the improvement or conversion of existing structures used or to be used as dwellings for two or more families. On such loans existing law limits the amount to $10,000 and the maturity to 7 years and 32 days. The House bill provided that the amount of such a loan could be either $10,000 or $1,500 per family unit, whichever is greater, and increased the permissible maturity to 10 years and 32 days. The Senate amendment struck out the provisions in the House bill extending the maturities and increasing the amounts of title I insured loans, thus in effect retaining the limitations of existing law. The conference substitute likewise leaves these provisions of existing law unchanged.

The Senate amendment contained a number of provisions, which were not contained in the House bill, with respect to FHA title I insurance of home repair and improvement loans which are designed to prevent abuses that have occurred in this program. One of these provisions would place the lender in a position of coinsuror through limiting title I insurance coverage to reimbursement of only 80 percent of the loss on any individual loan. The conference substitute retains the principle of this provision but increases the FHA insurance coverage to 90 percent of the loss on any individual loan. The committee of conference is of the opinion that limiting the coverage of losses to 80 percent on any individual loan might prove too restrictive particularly to small lenders. At the same time an insurance coverage limited to 90 percent would still retain a measure of self interest on the part of the lender in each loan in an amount sufficient to induce more careful lending operations.

Other provisions added by the Senate amendment would (1) limit the granting of FHA title I insurance to supervised lenders approved by FHA, or to such other lenders as (on the basis of their credit and their experience and facilities to make and service this type of loan) FHA approved; (2) restrict items eligible for FHA title I insurance to those which substantially protect or improve basic livability or utility of the property; (3) write into law restrictive features of present FHA title I regulations with respect to dealer approval, maintenance of dealer file, 6-day waiting period prior to disbursement, and requirements with respect to completion certificates; (4) prevent use of FHA title I loans on new homes until completed and occupied for 6 months, and (5) prevent multiple FHA title I loans on the same structure with the aggregate balance in excess of the maximum statutory dollar limitation. The conference substitute retains these provisions of the Senate amendment with the exception of the provision which would write into law restrictive features of present FHA title I regulations. The committee of conference was of the opinion that allowing such restrictive provisions to be covered by regulation rather than on a statutory basis was desirable from the standpoint of administration of the insurance program.

The conference substitute also allows a reasonable time-the first day after the first full calendar month following the date of approval of the Housing Act of 1954-for the preparation, issuance, and printing of FHA rules, regulations, forms, and instructions and their distribution to lenders operating under the title I program throughout the country.

SALES HOUSING

FHA insurance of 1-to-4-family sales housing is authorized by section 203 of the National Housing Act. Both the House bill and the Senate amendment provided changes in existing law with respect to maximum ratios of loans to values and maximum mortgage amounts. The House bill provided for a ratio of loan to value of 95 percent on the first $10,000 plus 75 percent of the excess over $8,000 (actually this $8,000 figure should be $10,000 but, through inadvertence, was not included in the amendment to these provisions adopted by the House). The Senate amendment provided for a ratio of loan to value of 95 percent of the first $8,000 plus 75 percent of the balance in excess of $8,000. Maximum mortgage amounts were also limited to $20,000 in the case of a one- or two-family dwelling, $27,500 in the case of a three-family dwelling and $35,000 in the case of a four-family dwelling under the provisions of the House bill; the Senate amendment placed these limitations at $18,000, $24,000 and $30,000 respectively. The House bill made the new ratios of loans to values applicable to both new and existing dwellings. The Senate amendment limited

its loan to value ratio provision to only new construction and on existing construction retained the existing maximum mortgage ratio of 80 percent of value. The House bill provided a maximum maturity of 30 years on mortgages of 1-to-4-family homes and made such maturity applicable to both existing and new homes. The Senate amendment provided a maximum maturity on mortgages for new homes of 30 years, and required that on existing homes the mortgage maturity be reduced from 30 years by one year for each of the first 10 years of age, so that an existing dwelling which was built 10 or more years ago could not be mortgaged for a term exceeding 20 years.

With respect to new housing the conference substitute provides for a ratio of loan to value of 95 percent of the first $9,000 of value and 75 percent of the excess over $9,000, and authorizes the President to increase the $9,000 amount up to not to exceed $10,000 if, after taking into consideration the general effect of such higher dollar amounts upon conditions in the building industry and upon the national economy, he determines such action to be in the public interest. The maximum dollar mortgage limitations are the same as those provided in the House bill.

With respect to existing housing the conference substitute provides for a loan to value ratio of 90 percent of the first $9,000 of value plus 75 percent of the balance in excess of $9,000. It likewise provides for Presidential authority to increase the $9,000 figure to $10,000, and the dollar mortgage maxima are the same as those applicable to new housing.

With respect to mortgage maturities the conference substitute provided a maximum maturity of 30 years or three-quarters of the FHA Commissioner's estimate of the remaining life of the building improvements, whichever is the lesser. The committee of conference has been informed that FHA presently requires that the mortgage maturity not exceed three-quarters of the remaining economic life of the house whether new or old. In writing this limitation into the statute the Committee of Conference desires to place this safeguard in the law to make it clear that houses, especially old houses, are not to be financed for a term which would increase the Government's risk as insurer of the mortgage.

Although in most cases "mortgaging-out" is not applicable to sales housing, it is a possibility under certain circumstances where the builder of sales housing might actually become the mortgagor of the property. This could happen only when the builder, having built the homes, was unable immediately to dispose of them and had to close out the mortgage in his own name, thus becoming the mortgagor. In order to provide an effective statutory safeguard in such cases the conference substitute contains a provision limiting the maximum loan to value ratio where the builder becomes the mortgagor to not to exceed 85 percent of the mortgage loan which an owner-occupant could obtain. It is the further understanding of the committee of conference that, in such cases where a builder is constructing FHA sales housing and becomes the mortgagor because of inability to sell his houses, the FHA limits such builder in further participation under its programs. The committee of conference desires that this procedure be continued not only to assure that sales housing is constructed for sales purposes, but also as an effective method to prevent misuse of the FHA insurance system.

FHA APPRAISALS OF LONG-TERM ECONOMIC VALUE

Historically, the fundamental soundness of the whole concept of the FHA home mortgage insurance system has rested on the integrity of its appraisal system as a measurement of the long-term economic value of a

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