Housing (Repealed)

(a) To be eligible as security for a loan, the property shall be both moderate cost housing and new housing construction on which no physical work or installation other than that related to land work or improvement has been done prior to July 1, 1955, and shall be designed for the accommodation of one family only. (b) Existing construction at the time of approval of any permanent loan, including any property which is under construction at such time, shall, to the commissioner's satisfaction, comply with or reasonably meet standards substantially equivalent to those set forth in the general acceptability and the stated objectives of the minimum planning and minimum construction requirements of the minimum property requirements of the federal housing administration. (c) Completion of proposed construction at the time of approval of any construction-permanent loan shall, to the commissioner's satisfaction, comply with or reasonably meet standards substantially equivalent to those set forth in the general acceptability, minimum planning, building planning and minimum construction requirements of the minimum property requirements of the federal housing administration. (d) Each application for a construction-permanent loan shall be accompanied by a plot plan and by drawings and specifications describing all proposed construction, which plot plan and drawings and specifications shall be in substantially the same form and contain the same information as that required in the required drawings and specifications provisions of the minimum property requirements of the federal housing administration. Each such application shall also be accompanied by the builder's agreement to deliver to the mortgagor a warranty certificate upon completion of construction as required in subsection (j) of this section. (e) Specifications shall include the data on the commissioner's form entitled "Description of Materials" and shall be in sufficient detail to describe the sizes, grades and qualities of all materials and equipment and the manner of erecting and installing the same. (f) Property covered by a construction-permanent loan shall be subject to periodic inspections by the commissioner to determine whether construction complies with the approved plans and specifications. (g) The stages at which inspections shall be made will be those set forth in the compliance inspection requirements of the minimum property requirements of the federal housing administration, and the borrower or the builder shall notify the commissioner when construction is ready for such inspections. (h) Each construction-permanent loan shall provide that, in the event of noncompliance with the plans and specifications and unwillingness or inability on the part of the borrower or builder to correct the same to the commissioner's satisfaction, the commissioner may declare the loan to be in default and to be immediately due and payable. (i) No loan application for a construction-permanent loan shall be approved unless there exists in writing a satisfactory construction contract between the eligible borrower and a competent, experienced and qualified home builder. This requirement may be waived by the commissioner upon special application in writing to him showing such good reasons as would indicate the competency and ability of the eligible borrower to qualify as the builder of his own home. (j) In connection with all loans, a warranty certificate of sound construction in a form satisfactory to the commissioner shall be issued to the purchaser by the builder or seller as a part consideration for the purchase price of the property. (k) The mortgaged property shall meet all requirements of local zoning regulations and building codes. (l) It shall be the prime obligation and responsibility of the eligible borrower to select a dwelling house adequate and suitable to his needs, of sound quality and so constructed that it affords low costs for maintenance and operation.