The National Housing Act has been amended by the following laws:

Public Law 76, 74th Cong., H. R. 6021, approved May 28, 1935, 49 Stat. 293.

Public Law 305, 74th Cong., H. R. 7617, approved August 23, 1935, 49 Stat. 722.

Public Law 486, 74th Cong., S. 4212, approved April 3, 1936, 49 Stat. 1187.

Public Law 525, 74th Cong., H. R. 11968, approved April 17, 1936, 49 Stat. 1233.

Pub. Res. 6, 75th Cong., S. J. Res. 38, approved February 19, 1937, 50 Stat. 20.

Public Law 44, 75th Cong., S. 1228, approved April 22, 1937, 50 Stat. 70.

Public Law 424, 75th Cong., H. R. 8730, approved February 3, 1938, 52 Stat. 8.

Public Law 111, 76th Cong., H. R. 5324, approved June 3, 1939, 53 Stat. 804.

Public Law 24, 77th Cong., H. R. 3575, approved March 28, 1941, 55 Stat. 55.

Public Law 138, 77th Cong., H. R. 4693, approved June 28, 1941, 55 Stat. 364.

Public Law 248, 77th Cong., H. R. 5395, approved September 2, 1941, 55 Stat. 686.

Public Law 559, 77th Cong., H. R. 6927, approved May 26, 1942, 56 Stat. 301.

Public Law 15, 78th Cong., S. 677, approved March 23, 1943, 57 Stat. 42.

Public Law 158, 78th Cong., S. 755, approved October 14, 1943, 57 Stat. 570.

Public Law 159, 78th Cong., H. R. 3291, approved October 15, 1943, 57 Stat. 571.

Public Law 392, 78th Cong., S. 1947, approved June 30, 1944, 58 Stat. 648.

Public Law 27, 79th Cong., S. 681, approved March 31, 1945, 59 Stat. 47.

Public Law 388, 79th Cong., H. R. 4761, approved May 22, 1946, 60 Stat. 207.

Public Law 480, 79th Cong., S. 2341, approved July 1, 1946, 60 Stat. 408.

Public Law 120, 80th Cong., S. 1230, approved June 26, 1947, 61 Stat. 182.

Public Law 129, 80th Cong., H. R. 3203, approved June 30, 1947, 61 Stat. 193.

Public Law 132, 80th Cong., S. J. Res. 135, approved June 30, 1947, 61 Stat. 202.

Public Law 366, 80th Cong., S. 1720, approved August 5, 1947, 61 Stat. 777.

Public Law 394, 80th Cong., S. 1770, approved December 27, 1947, 61 Stat. 945.

Public Law 468, 80th Cong., S. 2361, approved March 31, 1948, 62 Stat. 101.

Public Law 864, 80th Cong., S. 2790, approved July 1, 1948, 62 Stat. 1206.

Public Law 895, 80th Cong., H. R. 2798, approved July 3, 1948, 62 Stat. 1239.

Public Law 901, 80th Cong., H. R. 6959, approved August 10, 1948, 62 Stat. 1268.

Public Law 31, 81st Cong., H. R. 1731, approved March 30, 1949, 63 Stat. 18.

Public Law 52, 81st Cong., S. 851, approved April 23, 1949, 63 Stat. 57.

Public Law 171, 81st Cong., S. 1070, approved July 15, 1949, 63 Stat. 413.

Public Law 211, 81st Cong., S. 1184, approved August 8, 1949, 63 Stat. 570.

Public Law 278, 81st Cong., S. J. Res. 109, approved August 30, 1949, 63 Stat. 681.

Public Law 387, 81st Cong., S. J. Res. 134, approved October 25, 1949, 63 Stat. 905.

Public Law 475, 81st Cong., S. 2246, approved April 20, 1950, 64 Stat. 48.

Public Law 498, 81st Cong., H. R. 7846, approved May 2, 1950, 64 Stat. 97.

Public Law 107, 82d Cong., H. J. Res. 303, approved August 3, 1951, 65 Stat. 173.

Public Law 139, 82d Cong., S. 349, approved September 1, 1951, 65 Stat. 293.

Public Law 155, 82d Cong., H. R. 4914, approved September 28, 1951, 65 Stat. 365.

Public Law 214, 82d Cong., S. 2244, approved October 26, 1951, 65 Stat. 647.

Public Law 531, 82d Cong., S. 3066, approved July 14, 1952, 66 Stat. 601.

Public Law 5, 83d Cong., S. J. Res. 27, approved March 10, 1953, 67 Stat. 4.

Public Law 94, 83d Cong., S. 2103, approved June 30, 1953, 67 Stat. 121.

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Public Law 438, 83d Cong., S. J. Res. 167, approved June 29, 1954, 68 Stat. 320.

Public Law 560, 83d Cong., H. R. 7839, approved August 2, 1954, 68 Stat. 590.

Public Law 10, 84th Cong., S. J. Res. 42, approved March 11, 1955, 69 Stat. 11.

Public Law 94, 84th Cong., S. 67, approved June 28, 1955, 69 Stat. 172.

Public Law 119, 84th Cong., S. J. Res. 85, approved June 30, 1955, 69 Stat. 225.

Public Law 161, 84th Cong., H. R. 6829, approved July 15, 1955, 69 Stat. 324.

Public Law 216, 84th Cong., H. R. 4904, approved August 3, 1955, 69 Stat. 448.

Public Law 221, 84th Cong., S. 2630, approved August 4, 1955, 69 Stat. 471.

Public Law 345, 84th Cong., S. 2126, approved August 11, 1955, 69 Stat. 635.

The original act and acts amending the National Housing Act are set forth in the Appendix. The Appendix also contains other laws and information pertaining to the National Housing Act, as amended.

CREATION OF FEDERAL HOUSING ADMINISTRATION

SECTION 1. The President is authorized to create a Federal Housing Administration, all of the powers of which shall be exercised by a Federal Housing Commissioner (hereinafter referred to as the "Commissioner" 1), who shall be ap

The first sentence of Section I in effect prior to Reorganization Act of 1947 which became effective July 27, 1947 (the text of Reorganization Plan No. 3 of 1947 will be found in the Appendix) read as follows: "The President is authorized to create a Federal Housing Administration, all of the powers of which shall be exercised by a Federal Housing Administrator (hereinafter referred to as the "Administrator"), who shall be appointed by the President, by and with the advice and consent of the Senate, shall hold office for a term of four years, and shall receive compensation at the rate of $12,000 per annum."

Reorganization Plan No. 3 of 1947 abolished the Office of the Federal Housing Administrator and section 3 thereof provided that all the functions of the Federal Housing Administrator shall be transferred to the Federal Housing Commissioner to be appointed by the President by and with the advice and consent of the Senate and receive compensation at the rate of $10,000 per annum. No definite term of office for the Federal Housing Commissioner was prescribed. The term "Administrator" has, therefore, been changed throughout this compilation of the Act to "Commissioner".

The Independent Offices Appropriation Act, 1955, approved June 24, 1954, Public Law 428, 83d Congress, 68 Stat. 283, provides that Housing and Home Finance Agency "Administrator's general supervision and coordination responsibilities under Reorganization Plan Numbered 3 of 1947 shall hereafter carry full authority to assign and reassign functions, to reorganize and to make whatever changes, including the reallocation and transfer of administrative expense funds and authority where applicable, necessary to promote economy, efficiency and fidelity in the operations of the Housing and Home Finance Agency:"

Section 501 (a) of Public Law 901, approved August 10, 1948, fixed the compensation of the Federal Housing Commissioner at the rate of $15,000 per annum.

During the period February 24, 1942, to July 27, 1947, the effective date of Reorganization Plan No. 3 of 1947, the provisions of Executive Order 9070 dated February 24, 1942, were in effect, and under such Order, all of the functions, powers and duties of the Federal Housing Administration and the Federal Housing Administrator were consolidated with other named Agencies into the National Housing Agency and the Executive Order provided that there would be in the National Housing Agency three constituent units, each unit to be administered by a Commissioner acting under the direction and supervision of the

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pointed by the President, by and with the advice and consent of the Senate.2

In order to carry out the provisions of this title and titles II, III, VI, VII, VIII, and IX 3 the Commissioner may establish such agencies, accept and utilize such voluntary and uncompensated services, utilize such Federal officers and employees, and, with the consent of the State, such State and local officers and employees, and appoint such other officers and employees as he may find necessary, and may prescribe their authorities, duties, responsibilities, and tenure and fix their compensation, without regard to the provisions of other laws applicable to the employment or compensation of officers or employees of the United States. The Commissioner may delegate any of the functions and powers conferred upon him under this title and titles II, III, VI, VII, VIII and IX,3 to such officers, agents, and employees as he may designate or appoint, and may make such expenditures (including expenditures for personal services and rent at the seat of government and elsewhere, for law books and books of reference, and for paper, printing, and binding) as are necessary to carry out the provisions of this title and National Housing Administrator. The unit administering the Federal Housing Administration and its functions, powers and duties was known as the Federal Housing Administration and the Federal Housing Administrator served as Federal Housing Commissioner. (The text of Executive Order 9070 will be found in the appendix.)

Amended by Section 122 of Public Law 475, 81st Congress, approved April 20, 1950.

3 Title VI was added by act approved March 28, 1941 (58 Stat. 55). Title VII was added by act approved August 10, 1948 (62 Stat. 1268). Title VIII was added by act approved August 8, 1949 (63 Stat. 570). A new Title VIII covering armed services housing mortgage insurance was added by act approved August 11, 1955 (69 Stat. 635). Title IX was added by act approved September 1, 1951 (65 Stat. 293).

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titles II, III, VI, VII, VIII, and IX,1 without regard to any other provisions of law governing the expenditure of public funds. All such compensation, expenses, and allowances shall be paid out of funds made available by this Act. Provided, That, notwithstanding any other provisions of law except provisions of law hereafter enacted expressly in limitation hereof, all expenses of the Federal Housing Administration in connection with the examination and insurance of loans or investments under any title of this Act, all properly capitalized expenditures, and other necessary expenses not attributable to general overhead in accordance with generally accepted accounting principles shall be considered nonadministrative and payable from funds made available by this Act, except that, unless made pursuant to specific authorization by the Congress therefor, expenditures made in any fiscal year pursuant to this proviso, other than the payment of insurance claims and other than expenditures (including services on a contract or fee basis, but not including other personal services) in connection with the acquisition, protection, completion, operation, maintenance, improvement, or disposition of real or personal property of the Administration acquired under authority of this Act, shall not exceed 35 per centum of the income received by the Federal Housing Administration from premiums and fees during the preceding fiscal year. The Commissioner shall, in carrying out the provisions of this title and titles II, III, VI, VII, VIII, and IX 3 be authorized, in his official capacity, to sue and be sued in any court of competent jurisdiction, State or Federal.1

INSURANCE OF FINANCIAL INSTITUTIONS

SEC. 2.5 (a) The Commissioner is authorized and empowered upon such terms and conditions

Title VI was added by act approved March 28, 1941 (58 Stat. 55). Title VII was added by act approved August 10, 1948 (62 Stat. 1268). Title VIII was added by act approved August 8, 1949 (63 Stat. 570). A new Title VIII covering armed services housing mortgage insurance was added by act approved August 11, 1955 (69 Stat. 635). Title IX was added by act approved September 1, 1951 (65 Stat. 293).

This provision was added by act approved October 25, 1949 (63 Stat. 905).

3 Title VI was added by act approved March 28, 1941 (58 Stat. 55). Title VII was added by act approved August 10, 1948 (62 Stat. 1268). Title VIII was added by act approved August 8, 1949 (63 Stat. 570). A new Title VIII covering armed services housing mortgage insurance was added by act approved August 11, 1955 (69 Stat. 635). Title IX was added by act approved September 1, 1951 (65 Stat. 293).

As amended by sec. 344 (a) of the Banking Act of 1935 (49 Stat. 722). The amendment added the last sentence to sec. 1.

As amended by acts approved May 28, 1935 (49 Stat. 293); August 23, 1935 (49 Stat. 722); April 3, 1936 (49 Stat. 1187);

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as he may prescribe, to insure banks, trust companies, personal finance companies, mortgage companies, building and loan associations, installment lending companies, and other such financial institutions, which the Commissioner finds to be qualified by experience or facilities and approves as eligible for credit insurance, against losses which they may sustain as a result of loans and advances of credit, and purchases of obligations representing loans and advances of credit, made by them on and after July 1, 1939, and prior to September 30, 1956, for the purpose of financing alterations, repairs, and improvements upon or in connection with existing structures, and the building of new structures, upon urban, suburban, or rural real property (including the restoration, rehabilitation, rebuilding, and replacement of such improvements which have been damaged or destroyed by earthquake, conflagration, tornado, hurricane, cyclone, flood, or other catastrophe), by the owners thereof or by lessees of such real property under a lease expiring not less than six months after the maturity of the loan or advance of credit. In no case shall the insurance granted by the Commissioner under this section to any such financial institution on loans, advances of credit, and purchases made by such financial institution for such purposes on and after July 1, 1939, exceed 10 per centum of the total amount of such loans, advances of credit, and purchases: Provided, That with respect to any loan, advance of credit, or purchase made after the effective date of the Housing Act of the 1954, the amount of any claim for loss on any such individual loan, advance of credit, or purchase paid by the Commissioner under the provisions of this section to a lending institution shall not exceed 90 per centum of such loss. The aggregate amount of all loans,

April 17, 1936 (49 Stat. 1233); April 22, 1937 (50 Stat. 70); February 3, 1938 (52 Stat. 8); June 3, 1939 (53 Stat. 804); June 28, 1941 (55 Stat. 364); March 23, 1943 (57 Stat. 42); October 15, 1943 (57 Stat. 571); June 26, 1947 (61 Stat. 182); August 10, 1948 (62 Stat. 1268); April 20, 1950 (64 Stat. 48); March 10, 1953 (67 Stat. 4); August 2, 1954 (68 Stat. 590); June 30, 1955 (69 Stat. 225'); and August 11, 1955 (69 Stat. 635).

• Effective as of March 1, 1950, as amended by acts approved April 20, 1950 (64 Stat. 48), June 30, 1955 (69 Stat. 225) and August 11, 1955 (69 Stat. 225).

Sec. 101 (b) of the Housing Act of 1954, Public Law 560. 83d Congress, approved August 2, 1954, 68 Stat. 590, provided that as used in this section 2 (a) the "effective date of the Housing Act of 1954" should mean "the first day after the first full calendar month following the date of approval of the Housing Act of 1954" (viz. October 1, 1954).

This proviso added by sec. 101 (a) of the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590.

advances of credit, and obligations purchased, exclusive of financing charges, with respect to which insurance may be heretofore or hereafter granted under this section and outstanding at any one time shall not exceed $1,750,000,000.1

After the effective date of the Housing Act of 1954, (i) the Commissioner shall not enter into contracts for insurance pursuant to this section except with lending institutions which are subject to the inspection and supervision of a governmental agency required by law to make periodic examinations of their books and accounts, and which the Commissioner finds to be qualified by experience or facilities to make and service such loans, advances or purchases, and with such other lending institutions which the Commissioner approves as eligible for insurance pursuant to this section on the basis of their credit and their experience or facilities to make and service such loans, advances or purchases; (ii) only such items as substantially protect or improve the basic livability or utility of properties shall be eligible for financing under this section, and therefore the Commissioner shall from time to time declare ineligible for financing under this section any item, product, alteration, repair, improvement, or class thereof which he determines would not substantially protect or improve the basic livability or utility of such properties, and he may also declare ineligible for financing under this section any item which he determines is especially subject to selling abuses; and (iii) the Commissioner is hereby authorized and directed, by such regulations or procedures as he shall deem advisable, to prevent the use of any financial assistance under this section (1) with respect to new residential structures that have not been completed and occupied for at least six months, or (2) which would, through multiple loans, result in an outstanding aggregate loan balance with respect to the same structure exceeding the dollar amount limitation prescribed in this subsection for the type of loan involved.3

1 Public Law 5, 83d Congress, approved March 10, 1953, 67 Stat. 4, amended this sentence to read as set forth in the text. The original authorization was $200,000,000 which has been increased from time to time by statute. See Appendix.

* Sec. 101 (b) of the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590, provided that as used in this section 2 (a) the "effective date of the Housing Act of 1954" should mean "the first day after the first full calendar month following the date of approval of the Housing Act of 1954" (viz. October 1, 1954).

3 This paragraph added by sec. 101 (a) of the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590.

(b) No insurance shall be granted under this section to any such financial institution with respect to any obligation representing any such loan, advance of credit, or purchase by it (1) if the amount of such loan, advance of credit, or purchase made for the purpose of financing the alteration, repair, or improvement of existing structures exceeds $2,500, or for the purpose of financing the construction of new structures exceeds $3,000; (2) if such obligation has a maturity in excess of three years and thirty-two days, except that such maturity limitation shall not apply if such loan, advance of credit, or purchase is for the purpose of financing the construction of a new structure for use in whole or in part for agricultural purposes; or (3) unless the obligation bears such interest, has such maturity, and contains such other terms, conditions, and restrictions as the Commissioner shall prescribe, in order to make credit available for the purposes of this title: Provided, That insurance may be granted to any such financial institution with respect to any obligation not in excess of $10,000 and having a maturity not in excess of seven years and thirtytwo days representing any such loan, advance of credit, or purchase made by it if such loan, advance of credit, or purchase is made for the purpose of financing the alteration, repair, improvement, or conversion of an existing structure used or to be used as an apartment house or a dwelling for two or more families: Provided further, That any obligation with respect to which insurance is granted under this section on or after July 1, 1939, may be refinanced and extended in accordance with such terms and conditions as the Commissioner may prescribe, but in no event for an additional amount or term in excess of the maximum provided for in this subsection.

(c) (1) Notwithstanding any other provision of law, the Commissioner shall have the power, under regulations to be prescribed by him and approved by the Secretary of the Treasury, to assign or sell at public or private sale, or otherwise dispose of, any evidence of debt, contract, claim, personal property, or security assigned to or held by him in

Amended by acts approved May 26, 1942 (56 Stat. 301); August 10, 1948 (62 Stat. 1268); April 20, 1950 (64 Stat. 48). 5 Authority to insure loans of the type specified in this proviso was included in the amendment to section 2 (b) contained in act approved August 10, 1948 (62 Stat. 1268), and took the place of loans not exceeding $5,000 for alteration and conversion of existing structure to provide additional living accommodations, in area where President found an acute shortage of housing existed which would impede national war activities.

§ 2(c)(1)