of (a) loans insured under the National Housing Act and (b) loans guaranteed or insured under the Servicemen's Readjustment Act of 1944, as amended. Any purchase of a loan pursuant to this section shall be made in accordance with regulations issued by the Corporation and shall be subject to the following qualifications:

(a) Purchases of loans shall be restricted to those areas in which the Corporation determines that a scarcity of a private secondary credit for such loans has developed to the extent of threatening the continued production and availability of sale or rental housing generally throughout the area and that such purchases by the Corporation would not reasonably be expected to contribute to substantial increases in costs and prices of housing facilities. No purchases of loans of any particular amount and character shall be made in any area unless the Corporation has determined that there is no active private market which is willing to purchase loans of that amount or character at prices which the Corporation considers to be appropriate, and the Corporation shall terminate or restrict any such purchases by it whenever it determines that the volume of such purchases contributes to substantial increases in costs and prices of housing facilities.

(b) No loan may be purchased if made prior to the effective date of this Act. (c) No loan may be purchased if the original principal obligation of the loan exceeds or exceeded $7,000 for each family residence or dwelling unit covered by the mortgage or other lien securing the loan: Provided, That the Corporation may prescribe a higher maximum amount or amounts, not exceeding $10,000 for each family residence or dwelling unit, if it finds at any time or in any area it is not feasible, within the limitations of a lower maximum amount or amounts, to construct or provide dwellings which meet sound standards of construction, design, and livability.

(d) No loan shall be purchased except from mortgagees or lienholders which the Corporation determines to be qualified by experience or facilities and approves for servicing the loan or performing any other obligation of the mortgagee or lienholder in connection with the loan.

(e) No purchase of a loan may be made unless supporting data satisfactory to the Corporation are submitted to show compliance with requirements prescribed by the Corporation with respect to the reasonable ability of the borrower to meet his payments, and the physical soundness of the property covered by the mortgage or other lien securing the loan.

Subject to the above qualifications, the regulations of the Corporation may contain such other conditions and provisions as the Corporation deems necessary to carry out the purposes of this title. Unless hereafter authorized by the Congress, the Corporation shall not purchase any loan under this title after June 30, 1950. At least ninety days prior to that date, the President shall submit to the Congress his recommendations as to any action or legislation with respect to the Corporation which may be necessary or desirable.

GENERAL POWERS OF CORPORATION

SEC. 206. For the purposes of this title, the Corporation

(a) shall have succession in its corporate name;

(b) may adopt, alter, and use a corporate seal, which shall be judicially noticed;

(c) may adopt, amend, and repeal bylaws, rules, and regulations for the conduct of its business and the exercise of its powers; and may provide by regulation for a reasonable fee to be charged for the review of applications for the purchase of loans by the Corporation or for other service;

(d) may make contracts and purchase or otherwise acquire, hold, lease, and dispose (at public or private sale) of such real and personal property as may be necessary or incidental to the conduct of its business, and may accept donations of services and property;

(e) may sue and be sued in any Federal, State, or local court of competent jurisdiction: Provided, That the Corporation shall be entitled to such immunities and exemptions from the payment of costs, charges, and fees as are granted to the United States Government: And provided further, That the Corporation shall be represented, at its request, in litigated matters by the Attorney General or such attorney or attorneys as he may designate;

(f) may (i) appoint, employ, and fix the compensation and duties of the Executive Vice President of the Corporation and such other officers, attorneys, experts, employees, and agents as the Corporation shall determine; (ii) delegate to them any of the powers and duties vested in the President

of the Corporation and provide for the redelegation thereof; and (iii) require bond of such of them as the Corporation may designate and fix the penalties and pay the premium of such bond: Provided, That with the exception of experts and consultants, appointments shall be made pursuant to the civilservice laws and the Classification Act of 1923, as amended;

(g) may utilize, and exercise any powers through, the facilities, officers, and employees of the Federal Home Loan Banks, or of any department, agency, corporation, or establishment of the Government; and may (without regard to the civil-service laws and the Classification Act of 1923, as amended) contract with any such agency or any other agency or individual or private corporation for the furnishing of any services or facilities, including appraisal, management, title, and other work in connection with property, and contract to make payment or reimbursement for any services or facilities; (h) may collect, compromise, and release contractual claims and obligations and pursue the same to final collection, institute proceedings for foreclosure on property covered by a mortgage or other lien, acquire any such property by voluntary conveyance or by purchase at foreclosure sale or otherwise, deal with, complete, rent, renovate, modernize, insure, or sell for cash or credit at public or private sale any property acquired by the Corporation, acquire or continue insurance or guaranty of any mortgage or loan held by the Corporation, and take such other action as may be necessary to preserve or protect any loan, mortgage, or lien, or interest therein, or to realize on the value thereof;

(i) may determine the necessity for and the character of its obligations and expenditures and the manner in which they shall be incurred, allowed, paid, and accounted for, subject to pertinent provisions of law applicable to Government corporations;

(j) shall be entitled to the use of the United States mails in the same manner and under the same conditions as the other executive agencies of the Government;

(k) may use any of the funds of the Corporation from any source to carry out any of its powers and duties and to pay any of its expenses or obligations; and

(1) may exercise all powers specifically granted by the provisions of this title and such incidental powers as are necessary to carry out the powers and duties of the Corporation.

TAXES

SEC. 207. The Corporation, including but not limited to its franchise, capital, reserves, surplus, income, assets, and property of any kind, shall be exempt from all taxation and special assessments now or hereafter imposed by the United States or by any Territory, dependency or possession thereof, or by any State, county, municipality, or local taxing authority, except that any property acquired by the Corporation in foreclosure, or otherwise acquired to protect or realize on the value of a mortgage or other lien, shall be subject to taxation and assessment to the same extent, according to its value, as other property is taxed and assessed. All notes and other obligations of the Corporation shall be exempt, both as to principal and interest, from all taxes (except surtaxes, estate, inheritance, and gift taxes) by any State, county, municipality, or local taxing authority.

GENERAL STATUTES AND LIMITATIONS

SEC. 208. (a) All general criminal and penal statutes of the United States relating to public moneys, property, or employees of the United States shall apply to public moneys, property, and employees of the Corporation. No officer or employee of the Corporation shall participate in any matter affecting his personal interests or the interests of any corporation, partnership, or association in which he is directly or indirectly interested. No individual, association, partnership, or corporation shall use the words "National Home Mortgage Corporation", or any combination of these four words, as the name, or part thereof, under which he or it shall do business. Any such use shall constitute a misdemeanor and shall be punishable by a fine not exceeding $1,000.

(b) The Corporation shall have no authority or obligation to adjust, settle, or pay any tort claim arising out of the acts or the negligence of the Corporation

or its officers, employees, or agents except as provided in the Federal Tort Claims Act, as amended, or in the Act entitled "An Act to provide compensation for employees of the United States suffering injuries while in the performance of their duties, and for other purposes," approved September 7, 1916, as amended. (c) Section 101 of the Government Corporation Control Act, as amended, is hereby amended by adding the following before the period at the end thereof: "; and National Home Mortgage Corporation."

ANNUAL REPORT

SEC. 209. The Corporation shall make an annual report to the President, for transmission to the Congress, for each fiscal year, ending on June 30, to be transmitted not later than January 15 following the close of the fiscal year for which such report is made.

TITLE III-HOUSING RESEARCH

SEC. 301. To assist in progressively reducing housing costs and increasing the production of better housing, and in making available necessary data on housing needs, demand, and supply, the Housing and Home Finance Administrator shall

(a) undertake and conduct a program with respect to technical research and studies to develop, demonstrate, and promote the acceptance and application of new and improved techniques, materials, and methods which will permit progressive reductions in housing construction and maintenance costs, and stimulate the increased and sustained production of housing. Such program may be concerned with improved and standardized building codes and regulations and methods for the more uniform administration thereof, standardized dimensions and methods for the assembly of home-building materials and equipment, improved residential design and construction, new and improved types of building materials and equipment, and methods of production, distribution, assembly, and construction, and sound techniques for the testing thereof and for the determination of adequate performance standards, and may relate to appraisal, credit, and other housing market, data, housing needs, demand and supply, finance and investment, land costs, use and improvement, site planning and utilities, zoning and other laws, codes and regulations as they apply to housing, other factors affecting the cost of housing, and related technical and economic research:

(b) prepare and submit to the President and to the Congress estimates of national housing needs and reports with respect to the progress being made toward meeting such needs, and correlate and recommend proposals for such executive action or legislation necessary or desirable for the furtherance of the national housing objective and policy established by this Act, together with such other reports or information as may be required of the Administrator by the President or the Congress;

(c) encourage localities to make studies of their own housing needs and markets, along with surveys and plans for housing, urban land use and related community development, and provide, where requested and needed by the localities, technical advice and guidance in the making of such studies. surveys, and plans.

SEC. 302. In carrying out research and studies under this title, the Administrator shall utilize, to the fullest extent feasible, the available facilities of other departments, independent establishments, and agencies of the Federal Government; and the Secretary of Commerce or his designee shall hereafter be included in the membership of the National Housing Council. The Administrator is further authorized, for the purposes of this title, to undertake research and studies cooperatively with agencies of State or local governments, and educational institutions and other nonprofit organizations. The Administrator shall dissemi

nate the results of research and studies undertaken pursuant to this title in such form as may be most useful to industry and to the general public.

SEC. 303. There are hereby authorized to be appropriated such sums as may be necessary to carry out the purposes of this title.

TITLE IV-RENTAL HOUSING AIDS FOR FAMILIES OF MODERATE INCOMES AND VETERANS

MORTGAGE INVESTMENT AIDS; VETERANS' COOPERATIVES

SEC. 401. (a) Section 207 (c) of the National Housing Act, as amended, is hereby amended as follows:

(1) By striking out the semicolon and the word "and" at the end of paragraph numbered (2) as amended by this Act, inserting in lieu thereof a colon, and adding the following new proviso: "And provided further, That, notwithstanding any of the provisions of this paragraph numbered (2), a mortgage with respect to a project to be constructed in a locality or metropolitan area where, as determined by the Administrator, there is a need for new dwellings for families of lower income at rentals comparable to the rentals proposed to be charged for the dwellings in such project (or, in the case of a mortgage with respect to a project of a nonprofit cooperative ownership housing corporation the permanent occupancy of the dwellings of which is restricted to members of such corporation, or a project constructed by a nonprofit corporation organized for the purpose of construction of homes for members of the corporation, at prices, costs, or charges comparable to the prices, costs, or charges proposed to be charged such members) may involve a principal obligation in an amount not exceeding 90 per centum of the amount which the Administrator estimates will be the value of the project when the proposed improvements are completed, except that in the case of a mortgage with respect to a project of a nonprofit cooperative ownership housing corporation whose membership consists primarily of veterans of World War II, the principal obligation may be in an amount not exceeding 95 per centum of the amount which the Administrator estimates will be the value of the project when the proposed improvements are completed; and".

(2) By striking out the period at the end of the second sentence, inserting in lieu thereof a comma, and adding the following: "except that with respect to mortgages insured under the provisions of the second proviso of paragraph numbered (2) of this subsection, which mortgages are hereby authorized to have a maturity of not exceeding forty years from the date of the insurance of the mortgage, such interest rate shall not exceed 4 per centum per annum." (3) By adding the following additional sentence at the end thereof: "Such property or project may include such commercial and community facilities as the Administrator deems adequate to serve the occupants."

(b) Section 207 (g) of the National Housing Act, as amended, is hereby amended by stri' ing out the number "2" appearing in clause (ii) and inserting in lieu thereof "1".

(c) Section 207 of the National Housing Act, as amended, is hereby amended by adding the following new paragraph at the end thereof:

"(q)" In order to assure an adequate market for mortgages on cooperativeownership projects and rental-housing projects for families of lower income and veterans of the character described in the second proviso of paragraph numbered (2) of subsection (c) of this section, the powers of the National Home Mortgage Corporation, and of any other Federal corporation or other Federal agency hereafter established, to make real-estate loans, or to purchase, service, or sell any mortgages, or partial interests therein, may be utilized in connection with projects of the character described in said proviso."

EQUITY INVESTMENT AIDS

SEC. 402. The National Housing Act, as amended, is hereby amended by adding the following new title:

"TITLE VII-INSURANCE FOR INVESTMENTS IN RENTAL HOUSING FOR FAMILIES OF MODERATE INCOME

"AUTHORITY TO INSURE

"SEC. 701. The purpose of this title is to supplement the existing systems of mortgage insurance for rental housing under this Act by a special system of insurance designed to encourage equity investment in rental housing at rents within the capacity of families of moderate income. To effectuate this purpose, the Administrator is authorized, upon application by the investor, to insure as

hereinafter provided, and, prior to the execution of insurance contracts and upon such terms as the Administrator shall prescribe, to make commitments to insure, the minimum annual amortization charge and an annual return on the outstanding investment of such investor in any project which is eligible for insurance as hereinafter provided in an amount (herein called the 'insured annual return') equal to such rate of return, not exceeding 24 per centum per annum, on such outstanding investment as shall, after consultation with the Secretary of the Treasury, be fixed in the insurance contract or in the commitment to insure: Provided, That any insurance contract made pursuant to this title shall expire as of the first day of the operating year for which the outstanding investment amounts to not more than 10 per centum of the established investment: And provided further, That the aggregate amount of contingent liabilities outstanding at any one time under insurance contracts and commitments to insure made pursuant to this title shall not exceed $1,000,000,000.

"ELIGIBILITY

"SEC. 702. (a) To be eligible for insurance under this title, a project shall meet the following conditions:

"(1) The Administrator shall be satisfied that there is, in the locality or metropolitan area of such project, a need for new rental dwellings at rents comparato the rents proposed to be charged for the dwellings in such a project.

"(2) Such project shall be economically sound, and the dwellings in such project shall be acceptable to the Administrator as to quality, design, size, and type.

"(b) Any insurance contract executed by the Administrator under this title shall be conclusive evidence of the eligibility of the project and the investor for such insurance, and the validity of any insurance contract so executed shall be incontestable in the hands of an investor from the date of the execution of such contract, except for fraud or misrepresentation on the part of such investor.

"PREMIUMS AND FEES

"SEC. 703. (a) For insurance granted pursuant to this title the Administrator shall fix and collect a premium charge in an amount not exceeding one-half of 1 per centum of the outstanding investment for the operating year for which such premium charge is payable without taking into account the excess earnings, if any, applied, in addition to the minimum annual amortization charge, to amortization of the outstanding investment. Such premium charge shall be payable annually in advance by the investor, either in cash or in debentures issued by the Administrator under this title at par plus accrued interest: Provided, That, if in any operating year the gross income shall be less than the operating expenses, the premium charge payable during such operating year shall be waived, but only to the extent of the amount of the difference between such expenses and such income and subject to subsequent payment out of any excess earnings as hereinafter provided.

"(b) With respect to any project offered for insurance under this title, the Administrator is authorized to charge and collect reasonable fees for examination, and for inspection during the construction of the project: Provided, That such fees shall not aggregate more than one-half of 1 per centum of the estimated investment.

"RENTS

"SEC. 704. The Administrator shall require that the rents for the dwellings in any project insured under this title shall be established in accordance with a rent schedule approved by the Administrator, and that the investor shall not charge or collect rents for any dwellings in the project in excess of the appropriate rents therefor as shown in the latest rent schedule approved pursuant to this section. Prior to approving the initial or any subsequent rent schedule pursuant to this section, the Administrator shall find that such schedule affords reasonable assurance that the rents to be established thereunder are (1) not lower than necessary, together with all other income to be derived from or in connection with the project, to produce reasonably stable revenues sufficient to provide for the payment of the operating expenses, the minimum annual amortization charge, and the minimum annual return; and (2) not higher than necessary to meet the need for dwellings for families of moderate income.