12 USC 1711. Group accounts. Semiannual transfer. insurance. SEC. 4. Section 205 (c) of the National Housing Act, as amended, is hereby amended to read as follows: "(c) The Commissioner shall, except as to group accounts terminated as of a date prior to July 1, 1953, transfer from each of the several group accounts to the general reinsurance account, beginning as of July 1, 1953, and as of the beginning of each semiannual period thereafter, an amount which, in the case of the initial transfer, shall equal 10 per centum of the total premium charges theretofore credited to such group accounts, and, in the case of subsequent transfers, shall equal the amount of any adjusted premium charges collected by the Commissioner in connection with the payment in full of insured mortgages prior to maturity on or after July 1, 1953, and an amount which shall in no event be less than 10 per centum nor more than 35 per centum of all other premium charges credited to such group accounts during the preceding semiannual period: Provided, That, until such time as the Commissioner determines that the resources in the general reinsurance account are sufficient to cover all estimated future deficits among individual group accounts, 100 per centum of all other premium charges credited to such group accounts during each such semiannual period shall be transferred as provided in this Termination of subsection. The Commissioner shall terminate the insurance as to any group of mortgages (1) when he shall determine that the amounts to be distributed, as hereinafter set forth, to each mortgagee under an outstanding mortgage assigned to such group are sufficient to pay off the unpaid principal of each such mortgage, or (2) when all the outSettlement of standing mortgages in any group have been paid. In addition to the amounts transferred as herein provided, the Commissioner shall, upon such termination, charge to the group account the estimated losses arising from transactions relating to that group, and shall distribute to the mortgagees for the benefit and account of the mortgagors of the mortgages assigned to such group the balance remaining in such group account, less any amount by which such balance exceeds the aggregate scheduled annual premiums of such mortgagors to the year of termination of the insurance: Provided, That any undistributed balance in the group account at termination shall be transferred to the general reinsurance account. Any such distribution to mortgagees shall be made equitably and in accordance with sound actuarial and accounting practice: Provided, That in no event shall any distribution to a mortgagor or for the account of a mortgagor under any provision of this section exceed his aggregate scheduled annual premiums to the year of termination of the insurance." accounts. 12 USC 1713. Multifamily rental housing. SEC. 5. (a) Section 207 (c) of the National Housing Act, as amended, is hereby amended (1) by striking out of paragraph numbered (2), "the sum of (i) 90 per centum of that portion of the estimated value of the property or project attributable to dwelling use (when the proposed improvements are completed) which does not exceed $7,000 per family unit and (ii) 60 per centum of such estimated value in excess of $7,000 and not in excess of $10,000 per family unit and (iii) 90 per centum of the estimated value of such part of such property or project as may be attributable to nondwelling use" and inserting "80 per centum of the estimated value of the property or project (when the proposed improvements are completed)"; (2) by amending paragraph numbered (3) to read as follows: "(3) not to exceed, for such part of such property or project as may be attributable to dwelling use, $2,000 per room (or $7,200 per family unit if the number of rooms in such property or.project does not equal or exceed four per family unit) and not in excess of $10,000 per family unit."; and (3) by inserting after paragraph numbered (3) the following new paragraph: "Notwithstanding any of the limitations contained in paragraphs numbered (2) and (3) of this subsection (c), if the number of bedrooms in such property or project is equal to or exceeds two per family unit, and the principal obligation of the mortgage does not exceed $7,200 per family unit for such part of such property as may be attributable to dwelling use, the mortgage may involve a principal obligation not in excess of 90 per centum of the estimated value of the property or project (when the proposed improvements are completed).' (b) Section 207 (i) of the National Housing Act, as amended, is 65 Stat. 314. hereby amended by striking out of the second sentence thereof the 12 USC 1713. word "twenty" and inserting in lieu thereof the word "ten". SEC. 6. The first sentence of section 213 (d) of the National Housing Cooperative Act, as amended, is hereby amended by striking "4 per centum per housing inannum" and inserting "412 per centum per annum, except that indi- surance. vidual mortgages insured pursuant to this subsection covering the 64 Stat. 54. individual dwellings in the project may bear interest at not to exceed 12 USC 1715e. 5 per centum per annum,". SEC. 7. Section 217 of the National Housing Act, as amended, is Mortgage inhereby amended by striking out of the second proviso "$1,900,000,000" surance author and inserting "$3,400,000,000". ization. SEC. 8. Title II of the National Housing Act, as amended, is hereby 66 Stat. 601. amended by adding at the end thereof the following new section: 12 USC 1715h. "SEC. 219. Notwithstanding limitations contained in any other sec- Transfer of intions of this Act as to the use of moneys credited to the Title I Housing surance funds. Insurance Fund, the Housing Insurance Fund, the War Housing Insurance Fund, the Housing Investment Insurance Fund, the Military Housing Insurance Fund, or the Defense Housing Insurance Fund, the Commissioner is hereby authorized to transfer funds from any one or more of such Insurance Funds to any other such Fund in such amounts and at such times as the Commissioner may determine, taking into consideration the requirements of such Funds, separately and jointly to carry out effectively the insurance programs for which such Funds were established." SEO. 9. Title V of the National Housing Act, as amended, is hereby amended by adding at the end thereof the following new section: "SEC. 516. The following funds shall be deemed an indebtedness to Payment to the United States of the particular insurance fund involved, and the Treasury. Commissioner is authorized and directed to pay the amount of such indebtedness to the Secretary of the Treasury, with simple interest thereon from the date the funds were advanced to the date of final payment at a rate determined by the Secretary of the Treasury, taking into consideration the average rate on outstanding marketable obligations of the United States from the date the funds were advanced until the date of final payment "(1) funds made available to the Commissioner pursuant to the provisions of sections 4 and 202, exclusive of amounts heretofore 12 USC 1705, refunded, (a) for carrying out title II with respect to mortgages 1708. insured under section 203 where such funds were credited to the 12 USC 1709. general reinsurance account in the Mutual Mortgage Insurance Fund, and (b) for the payment of salaries and expenses with respect to mortgage insurance under sections 207 and 210 where such funds were credited to the Housing Insurance Fund; แ "(2) funds made available to the Commissioner pursuant to sections 602 and 802; and 12 USC 1713, 1715a, note. 12 USC 1737, 17488. 12 USC 17471. Military housing. 12 USC 1748b. Physical im tification. "(3) funds made available to the Commissioner by the Secretary of the Treasury pursuant to section 710. "Payments to the Secretary of the Treasury under this section shall be made in such amounts and at such times as the Commissioner determines, after consultations with the Secretary of the Treasury, that funds are available for that purpose, taking into consideration the continued solvency of the funds involved. All payments made pursuant to this section shall be covered into the Treasury as miscellaneous receipts." SEC. 10. (a) Section 803 (a) of the National Housing Act, as amended, is hereby amended by striking "1953" and inserting "1954". (b) Section 803 (b) of the National Housing Act, as amended, is hereby amended by inserting immediately preceding the last paragraph thereof the following new paragraph: "The mortgagor shall agree (i) to certify, upon completion of the provement oer physical improvements on the mortgaged property or project and prior to final endorsement of the mortgage, either (a) that the amount of the actual cost to the mortgagor of said physical improvements (exclusive of off-site public utilities and streets and of organization and legal expenses) equaled or exceeded the proceeds of the mortgage loan or (b) the amount by which the proceeds of the mortgage loan exceeded the actual cost to the mortgagor of said physical improvements (exclusive of off-site public utilities and streets and of organization and legal expenses) as the case may be, and (ii) to pay, within sixty days after such certification, to the mortgagee, for application to the reduction of the principal obligation of such mortgage, the amount, if any, so certified to be in excess of such actual cost. The Commissioner shall construe the term 'actual cost' in such a manner as to reduce same by the amount of any kickbacks, rebates, and normal trade discounts received in connection with the construction of the said physical improvements, and to include only the actual amounts paid for labor and materials and necessary services in connection therewith." "Actual oost". 12 USC 1750g. Critical areas. 12 USC 1750b. Commitment authority. (c) The first sentence of the last paragraph of sections 803 (b) and 908 (b) of the National Housing Act, as amended, is hereby amended by striking out "4 per centum" and inserting "412 per centum”. SEC. 11. Section 903 (a) of the National Housing Act, as amended, is hereby amended by inserting the following proviso after the first proviso of said section: ": Provided further, That in the event the Commissioner has issued a commitment to insure a mortgage under section 903 of this title, which commitment was in force and effect on June 1, 1953, and the Commissioner determines that, because of changes in defense requirements, there is reasonable doubt that such housing is needed for defense purposes and that it is probable that the mortgage would become immediately in default and claim made for payment under the mortgage insurance contract if the unit or units are completed and the mortgage insured, the Commissioner is authorized, in the interest of conserving the National Defense Housing Insurance Fund, to pay (in cash from the National Defense Housing Insurance Fund) to the mortgagee for the account of the mortgagor such amount as the Commissioner shall determine to be necessary to reimburse the mortgagor the amounts paid or to be paid by the mortgagor on account of labor performed and materials in place, less the Commissioner's estimate of the reasonable salvage value of such materials, plus an allowance for development costs equal to 4 per centum of the principal amount of the mortgage specified in such commitment, and no payments shall be made pursuant to this proviso unless a claim therefor is filed not later than six months from date of the determination of lack of need and the claim is in such form and contains such supporting information, documents, and data as the Commissioner may require". * SEC. 16. Section 104 of the Defense Housing and Community Facilities and Services Act of 1951, as amended, is hereby amended (1) by inserting before the first sentence of said section "After June 30, 1953, no construction of permanent housing may be begun under title III of this Act."; (2) by striking out "1953" in the first place where it appears in said section and inserting "1954"; (3) by striking out "housing" in clause (b) and inserting "temporary housing"; (4) by striking out clause (c); and (5) by relettering clause (d) as clause (c). * SEC. 25. (a) Section 214 of the National Housing Act, as amended, is hereby amended by inserting the words "or Hawaii" after the word "Guam" in each place where it appears therein. (c) Section 214 of the National Housing Act, as amended, is hereby amended (1) by striking from the last sentence of said section the words "Upon application by the mortgagee," and inserting in lieu thereof the words: "Upon application by the mortgagee (1) where the inortgagor is regulated or restricted pursuant to the last sentence of this section or (2)"; and (2) by adding the following new sentence at the end of said section: "Without limiting the authority of the Commissioner under any other provision of law, the Commissioner is hereby authorized, with respect to any mortgagor in such case (except where the Alaska Housing Authority is the mortgagor or mortgagee), to require the mortgagor to be regulated or restricted as to rents or sales, charges, capital structure, rate of return, and methods of operation to such an extent and in such manner as the Commissioner determines advisable to provide reasonable rentals and sales prices and a reasonable return on the investment." Approved June 30, 1953. 65 Stat. 315; 66 Stat. 602. 12 USC 1716. 65 Stat. 313. [EXTRACT FROM] [Public Law 438 - 83d Congress] JOINT RESOLUTION To amend the National Housing Act, as amended, and for other purposes. Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That the National Housing Act, as amended, is hereby amended (1) by striking "July 1" in paragraph (1) (G) of section 301 (a) and inserting "August 1"; and (2) by striking "July 1" in section 803 (a) and inserting "July 31". Approved June 29, 1954. |