of the National Housing Act as heretofore, now, or hereafter in force, or in the stock of a Federal Home Loan Bank".

(b) Subsection (c) of section 5 of the Home Owners' Loan Act of 1933, as amended, is hereby amended by adding at the end of said subsection the following new paragraph;

"Without regard to any other provisions of this subsection, any such association, upon the approval of the Board or the Federal Home Loan Bank Administration by regulations or otherwise, may lend or invest its funds in or upon any loan or investment upon or with respect to home or combination home and business property which is insured or guaranteed or as to which a commitment for insurance or guaranty thereof has been made, or as to which the association has any insurance or guaranty, under title I or any other title or provision of the National Housing Act as heretofore, now, or hereafter in force, or under the Servicemen's Readjustment Act of 1944 as heretofore, now, or hereafter in force, or otherwise by the United States or any agency or instrumentality thereof."

SEC. 502. Subsection (i) of section 5 of the Home Owners' Loan Act of 1933, as amended, is hereby amended by adding at the end of said subsection the following new paragraph:

"Any Federal Savings and Loan Association may convert itself into a savings and loan, building and loan, or homestead association, or a cooperative bank, incorporated under the laws of the State, District, or Territory in which the principal office of such association is located, upon an equitable basis, subject to approval, by regulations or otherwise, by the Board or the Federal Home Loan Bank Administration and by the Federal Savings and Loan Insurance Corporation. If the Federal Savings and Loan Insurance Corporation shall elect to terminate its insurance with respect to any institution in connection with any conversion under this paragraph, such insurance shall automatically terminate concurrently with such conversion, and in that event the provisions of the last sentence of subsection (a) of section 407 of the National Housing Act, as amended, shall thereupon be applicable with respect to such institution."

SEC. 503. (a) Subsection (a) of section 10 of the Federal Home Loan Bank Act, as amended, is hereby amended by adding thereto at the end thereof the following new paragraph:

"Without regard to any other provisions of law except this paragraph, each Federal Home Loan Bank, upon the approval of the Board or the Federal Home Loan Bank Administration by regulations or otherwise, is authorized to make advances to its members upon the security of (i) any loan or investment which is insured or as to which a commitment for the insuring thereof has been made or as to which the member institution has insurance, under title I or any other title or provision of the National Housing Act as heretofore, now, or hereafter in force, or (ii) any loan or investment upon or with respect to home combination home and business property which is insured or guaranteed or as to which a commitment for insurance or guaranty thereof has been made, or as to which the member institution has any insurance or guaranty under the Servicemen's Readjustment Act of 1944 as heretofore, now, or hereafter in force, or otherwise by the United States or any agency or instrumentality thereof: Provided, That any advance made under this paragraph may not be for an amount in excess of 90 per centum of the unpaid principal of the mortgage or obligation on the security of which such advance is being made."

(b) Subsection (b) of section 10 of the Federal Home Loan Bank Act, as amended, is hereby amended by striking out the word "twenty" in clause numbered (1) of the first sentence thereof and inserting in lieu thereof the language "twenty-five".

SEC. 504. Section 20 of the Federal Home Loan Bank Act, as amended, is hereby amended by striking out the word "twice" where it appears in the first sentence.

SEC. 505. Section 21 of the Federal Home Loan Bank Act, as amended, is hereby amended by inserting at the end thereof the following new subsection: "(f) (1) As used in this subsection the term 'association' includes any member of a Federal Home Loan Bank, any Federal Savings and Loan Association, and any institution the accounts of which are insured by the Federal Savings and Loan Insurance Corporation.

"(2) Whoever, by force and violence, or by putting in fear, feloniously takes, or feloniously attempts to take, from the person or presence of another any property or money or any other thing of value belonging to, or in the care, custody, control, management, or possession of, any association; or whoever

shall enter or attempt to enter any association, or any building used in whole or in part as an association, with intent to commit in such association or building, or part thereof, so used, any felony or larceny shall be fined not more than $5,000 or imprisoned not more than twenty years, or both; or whoever shall take and carry away, with intent to steal or purloin, any property or money or any other thing of value exceeding $50 belonging to, or in the care, custody, control, management, or possession of any association, shall be fined not more than $5,000 or imprisoned not more than ten years, or both; or whoever shall take and carry away, with intent to steal or purloin, any property or money or any other thing of value not exceeding $50 belonging to, or in the care, custody, control, management, cr possession of any association, shall be fined not more than $1,000 or imprisoned not more than one year, or both.

"(3) Whoever, in committing, or in attempting to commit, any offense defined in subdivision (2) of this subsection, assaults any person, or puts in jeopardy the life of any person by the use of a dangerous weapon or device, shall be fined not less than $1,000 nor more than $10,000 or imprisoned not less than five years nor more than twenty-five years, or both.

"(4) Whoever shall receive, possess, conceal, store, barter, sell, or dispose of any property or money or other thing of value knowing the same to have been taken from an association in violation of subdivision (2) of this subsection shall be fined not more than $5,000 or imprisoned not more than ten years, or both.

"(5) Whoever, in committing any offense defined in this subsection, or in avoiding or attempting to avoid apprehension for the commission of such offense, or in freeing himself or attempting to free himself from arrest or confinement for such offense, kills any person, or forces any person to accompany him without the consent of such person, shall be punished by imprisonment for not less than ten years, or by death if the verdict of the jury shall so direct."

SEC. 506. Section 402 of the National Housing Act, as amended, is hereby amended as follows:.

(a) By striking out in subsection (b) the following: "the Home Owners' Loan Corporation shall be entitled to the payment of dividends on such stock out of net earnings at a rate equal to the interest rate on such bonds, which dividends shall be cumulative" and inserting in lieu thereof the following: "the Home Owners' Loan Corporation shall be entitled to the payment of dividends (which dividends shall be cumulative) on such stock out of net earnings until July 1, 1946, at a rate equal to the interest rate on such bonds, and after June 30, 1946, at a rate equal to the average interest rate on the bonds of the Home Owners' Loan Corporation outstanding during the period with respect to which such dividends are paid or accumulate”.

(b) By adding at the end of subsection (d) the following new paragraph: "The Secretary of the Treasury is authorized to purchase any obligations issued by the Corporation pursuant to this title, as heretofore, now, or hereafter in force, and for such purpose the Secretary of the Treasury is authorized to use as a public-debt transaction the proceeds of the sale of any securities hereafter issued under the Second Liberty Bond Act, as now or hereafter in force, and the purposes for which securities may be issued under the Second Liberty Bond Act, as now or hereafter in force, are extended to include such purchases. The Secretary of the Treasury may, at any time, sell, upon such terms and conditions and at such price or prices as he shall determine, any of the obligations acquired by him under this paragraph. All redemptions, purchases, and sales by the Secretary of the Treasury of such obligations shall be treated as public-debt transactions of the United States. The Secretary of the Treasury shall not at any time purchase any obligations under this paragraph if such purchase would increase the aggregate principal amount of his then outstanding holdings of such obligations under this paragraph to an amount greater than three times the aggregate amount of the then outstanding capital stock, reserves, and surplus of the Corporation."

FEDERAL HOUSING ADMINISTRATION

SEC. 507. Section 2 of the National Housing Act, as amended, is hereby amended as follows:

(a) By striking out in the first sentence of subsection (a) the following: "and prior to July 1, 1947,".

(b) By striking out the word "three" in clause numbered (2) in the first sentence of subsection (b) and inserting in lieu thereof the word "five".

(c) By striking out the first proviso in the first sentence of subsection (b) and inserting in lieu thereof the following: "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 a hotel, apartment house, dwelling for two or more families, hospital, orphanage, college, or school :".

(d) By striking out the last sentence of subsection (b).

SEC. 508. (a) Section 203 (b) of the National Housing Act, as amended, is hereby amended by striking out in paragraph numbered (3) the following: "of the character described in paragraph (2) (B) of this subesction" and inserting in lieu thereof the following: "on property approved for insurance prior to the beginning of construction".

(b) Section 203 of the National Housing Act, as amended, is hereby amended by adding at the end thereof a new paragraph as follows:

"(h) If the Administrator finds that, because of higher costs, it is not feasible, within any particular geographical area, to construct dwellings without sacrifice of sound standards of construction, design, livability within the limitations as to maximum mortgage amounts provided in section 203 (b) (2), the Administrator may (where he finds it consistent with economic soundness) by regulation or otherwise prescribe, with respect to dollar amount, a higher maximum for the principal obligation of mortgages insured under any of the paragraphs of said section in such amount as he shall find necessary to compensate for such higher costs but not to exceed in any event the maximum otherwise applicable by more than $1,000."

SEC. 509. (a) Section 203 (c) of the National Housing Act, as amended, is hereby amended (1) by striking out in the last sentence the words "section or section 210" and inserting in lieu thereof the word "title"; and (2) by striking out in said sentence (i) the words "under this section", and (ii) the following: "and a mortgage on the same property is accepted for insurance at the time of such payment,”.

(b) Section 603 (c) of the National Housing Act, as amended, is hereby amended by striking out in the next to the last sentence the following: “and a mortgage on the same property is accepted for insurance at the time of such payment,".

(c) Section 211 of the National Housing Act, as amended, is hereby amended by striking the period and adding a comma and the following: "and in view of possible unemployment, economic conditions, or misfortune beyond the control of the mortgagor, and notwithstanding any limitations contained in this title with respect to the maximum maturity, the Administrator is authorized and directed to issue rules or regulations which shall permit provisions in the mortgage in form satisfactory to him with respect to the deferment of monthly payments and may in his discretion require such provisions: Provided, That any such deferments shall not in the aggregate result in an extension of the maturity of the mortgage for a period of more than three years."

SEC. 510. Sections 203 and 603 of the National Housing Act, as amended, are hereby amended by adding at the end of each such section a new subsection, numbered (g) and (e), respectively, and reading as follows:

"In the case of any mortgage insured under this section upon property owned by a veteran or by the dependent of a veteran where monthly payments to principal have been deferred during such veteran's period of military service, or any part thereof, or where the mortgage is in default by reason of failure to make payments in accordance therewith during such period of military service, the Administrator is authorized to consent to such modification and extension of the terms of such mortgage as he may deem advisable and to the best interest of the mortgagor: Provided, That the extended maturity of the mortgage does not exceed the unexpired term of the mortgage plus a period equal to the veteran's period of military service and that such modification provides for the complete amortization of the mortgage debt within such extended maturity: And provided further, That such modification and extension shall not affect the amount of the annual mortgage insurance premium payable under the contract of insurance or increase the rate of interest prescribed in such mortgage." SEC. 511. Section 204 (a) of the National Housing Act, as amended, is hereby amended by striking out, in the last sentence, the following: "prior to July 1, 1944,".

SEC. 512. Section 207 (b) of the National Housing Act, as amended, is hereby amended as follows:

(a) By amending paragraph numbered (1) to read as follows:

"(1) Federal or State instrumentalities, municipal corporate instrumentalities of one or more States, or limited dividend or redevelopment or housing corporations restricted by Federal or State laws or regulations of State banking or insurance departments as to rents, charges. capital structure, rate of return, or methods of operation; or".

(b) By striking out the period at the end of the first sentence of paragraph numbered (2), inserting in lieu thereof a colon, and adding the following: "Provided, That, with respect to mortgages offered for insurance involving a principal obligation not in excess of $250,000, the mortgagor may be any person, corporation, or legal entity satisfactory to the Administrator, and the Administrator shall not be required to regulate or restrict rents or sales, charges, capital structure, rate of return, and methods of operation."

SEC. 513. Section 207 (c) of the National Housing Act, as amended, is hereby amended by amending the first sentence to read as follows:

"(c) To be eligible for insurance under this section a mortgage on any property or project shall involve a principal obligation in an amount

"(1) not to exceed $5,000,000, or, if executed by a mortgagor coming within the provisions of paragraph numbered (b) (1) of this section, not to exceed $50,000,000;

"(2) not to exceed 80 per centum of the amount which the Administrator estimates will be the value of the property or project when the proposed improvements are completed, including the land; the proposed physical improvements; utilities within the boundaries of the property or project; architects' fees; taxes and interest accruing during construction; and other miscellaneous charges incident to construction and approved by the Administrator: Provided, That, except with respect to a mortgage executed by a mortgagor coming within the provisions of paragraph numbered (b) (1) of this section, such mortgage shall not exceed the amount which the Administrator estimates will be the cost of the completed physical improvements on the property or project, exclusive of public utilities and streets and organization and legal expenses; and

"(3) not to exceed $1,500 per room for such part of such property or project as may be attributable to dwelling use: Provided, That the Administrator may increase this amount to $1,800 where in his discretion cost levels so require." SEC. 514. Section 207 (d) of the National Housing Act, as amended, is hereby amended by striking out in the last sentence the words "one-half of".

SEC. 515. Section 207 (h) of the National Housing Act, as amended, is hereby amended by striking out, in paragraph numbered (1), the words "paid to the mortgagor of such property", and inserting in lieu thereof the following: "retained by the Administrator and credited to the Housing Insurance Fund".

TITLE VI-HOME OWNERSHIP AND RENTAL HOUSING FOR FAMILIES OF LOWER INCOME

SEC. 601. This title is not designed to supplant or alter any of the existing systems of mortgage insurance under the National Housing Act, but rather to supplement them with special systems of mortgage insurance for families of lower income who require more favorable terms than such existing systems offer. In providing liberalized forms of consumer credit to reduce the cost and sale or rental price of housing for such families, the policy underlying this title contemplates that this more liberal credit shall be combined with all proper incentives to cost reduction through adoption of appropriate new materials, techniques and methods, and through increased efficiency in production and elimination of unnecessary restrictive practices by all concerned in the complex building industry. SEC. 602. Section 203 (b) of the National Housing Act, as amended, is hereby amended as follows:

(a) By striking out the period at the end of paragraph (2) (C), inserting in lieu thereof a comma and the word "or", and adding the following new paragraph:

"(D) not to exceed $5,000 and not to exceed 95 per centum of the appraised value (as of the date the mortgage is accepted for insurance) of a property, urban, suburban, or rural, upon which there is located a dwelling designed principally for a single-family residence which is approved for mortgage insurance prior to the beginning of construction: Provided, That the Adminis

trator may by regulation provide that the principal obligation of any mortgage eligible for insurance under this paragraph shall be fixed at a lesser amount than $5,000 where he finds that for any section of the country or at any time a lower-cost dwelling for families of lower income is feasible without sacrifice of sound standards of construction, design, and livability: And provided further, That with respect to mortgages insured under this paragraph the mortgagor shall be the owner and occupant of the property at the time of the insurance and shall have paid on account of the property at least 5 per centum of the appraised value in cash or its equivalent, or (where the Administrator finds it consistent with economic soundness) shall be the builder constructing the dwelling in which case the principal obligation shall not exceed 85 per centum of the appraised value of the property."

(b) By striking out the period at the end of paragraph numbered (3), inserting in lieu thereof a comma, and adding the following: "or not to exceed thirty years in the case of a mortgage insured under paragraph (2) (D) of this subsection." (c) By striking out the period at the end of paragraph numbered (5), inserting in lieu thereof a comma, and adding the following: "or not to exceed 4 per centum per annum in the case of a mortgage insured under paragraph (2) (D) of this subsection."

SEC. 603. Section 204 (a) of the National Housing Act, as amended, is hereby amended by inserting between the first and second provisos in the last sentence the following: "And provided further, That with respect to mortgages which are accepted for insurance under section 203 (b) (2) (D) or under the second proviso of section 207 (c) (2) of this Act, there may be included in the debentures issued by the Administrator on account of the cost of foreclosure (or of acquiring the property by other means) actually paid by the mortgagee and approved by the Administrator an amount, not in excess of two-thirds of such cost or $75, whichever is the greater :".

SEC. 604. Section 207 (c) of the National Housing Act, as amended, is hereby amended as follows:

(a) 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 mutual ownership housing corporation the occupancy 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) which without the insurance provided hereby cannot adequately be met by privately financed new dwellings currently produced in such locality or metropolitan area, may involve a principal obligation in an amount which the Administrator finds to be consistent with economic soundness but 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; and". (b) 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." (c) 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.”

SEC. 605. Section 207 (g) of the National Housing Act, as amended, is hereby amended by striking the number "2" appearing in clause (ii) and inserting in lieu thereof "1".

SEC. 606. Section 204 (f) of the National Housing Act, as amended, is hereby amended by inserting in clause numbered (1), immediately preceding the semicolon, the following: "if the mortgage was insured under section 203 and shall be retained by the Administrator and credited to the Housing Insurance Fund if the mortgage was insured under section 207".