relocation housing mortgage insurance

section 221 relocation housing mortgage insurance Sec. 110. (a) (1) The first paragraph of section 221(a) of the National Housing Act is amended to read as follows: “This section is designed to supplement systems of mortgage insurance under other provisions of the National Housing Act in order to assist (1) in relocating families from urban renewal areas, (2) in relocating families to be displaced as the result of governmental action in a community respecting which (A) the Housing and Home Finance Administrator has made the certification to the Commissioner provided for by subsection 101(c) of the Housing Act of 1949, as amended, or (B) there is being carried out a project covered by a Federal aid contract executed, or prior approval granted, by the Housing and Home Finance Administrator under title I of the Housing Act of 1949, as amended, before the effective date of the Housing Act of 1954, or (C) there is being carried out an urban renewal project assisted under section 111 of the Housing Act of 1949, as amended, and (3) in relocating families residing in the environs of a community described in clause (2) which are to be displaced as the result of governmental action.” (2) The second paragraph of section 221(a) of such Act is amended— (A) by striking out all that precedes the first colon and inserting in lieu thereof the following: “Mortgage insurance under this section shall be available only in those localities, communities, or environs of communities, which shall have requested such mortgage insurance to be provided”; 73 Stat. 659 (B) by striking out “in any such community” in the second proviso and inserting in lieu thereof “in or near any such community”; (C) by striking out “(1)” in the third proviso and inserting in lieu thereof “(2) (A)”; and (D) by striking out “(1)”, “(2)”, and “(3)”, wherever they appear in the last proviso, and inserting in lieu thereof respectively “(2) (A)”, “(2) (B)”, and “(2) (C)”. (3) Section 101 (c) of the Housing Act of 1949 is amended by striking out “if the mortgaged property is in a community referred to in clause (2) of section 221(a) of said Act”, and inserting in lieu thereof “if the mortgaged property is in an area described in clause (3) of section 221(a) of said Act, or in a community referred to in clause (2) (B) of said section”. (4) Section 101(c) of the Housing Act of 1949 is further amended by striking out “in a community” in clause (iii) of the last proviso. (b) Section 221(d) (2) of the National Housing Act is amended to read as follows: “(2) be secured by property upon which there is located a dwelling conforming to applicable standards prescribed by the Commissioner under subsection (f) of this section, and meeting the requirements of all State laws, or local ordinances or regulations, relating to the public health or safety, zoning, or other-wise, which may be applicable thereto, and shall involve a principal obligation (including such initial service charges, appraisal, inspection, and other fees as the Commissioner shall approve) in an amount (A) not to exceed (i) $9,000 in the case of a property upon which there is located a dwelling designed principally for a single-family residence, except that the Commissioner may by regulation increase this amount to not to exceed $12,000 in any geographical area where he finds that cost levels so require, (ii) $18,000 in the case of a property upon which there is located a dwelling designed principally for a two-family residence, except that the Commissioner may by regulation increase this amount to not to exceed $20,000 in any geographical area where he finds that cost levels so require, (iii) $25,000 in the case of a property upon which there is located a dwelling designed principally for a three-family residence, except that the Commissioner may by regulation increase this amount to not to exceed $27,500 in any geographical area where he finds that cost levels so require, (iv) $32,000 in the case of a property upon which there is located a dwelling designed principally for a four-family residence, except that the Commissioner may by regulation in-crease this amount to not to exceed $35,000 in any geographical, area where he finds that cost levels so require; and (B) not to exceed the appraised value (as of the date the mortgage is accepted for insurance) of any such property, less such amount, in the case of any mortgagor, as may be necessary to comply with the succeeding provisos: Provided, That if the mortgagor is the owner and an occupant of the property at the time of the insurance, he shall have paid on account of the property at least (i) $200 in the case of a single-family dwelling, (ii) $400 in the case of a two-family dwelling, (iii) $600 in the case of a three-family dwelling, and (iv) $800 in the case of a four-family dwelling, in cash or its equivalent, which amount may include amounts to cover settlement costs and initial payments for taxes, hazard insurance, mortgage insurance premium, and other prepaid expenses: Provided further, That nothing contained herein shall preclude the Commissioner from issuing a commitment to insure, 73 Stat. 660and insuring a mortgage pursuant thereto, where the mortgagor is not the owner and an occupant of the property, if the property is to be built or acquired and repaired or rehabilitated for sale, and the insured mortgage financing is required to facilitate the construction, or the repair or rehabilitation, of the dwelling and to provide financing pending the subsequent sale thereof to a qualified owner who is also an occupant thereof, but in such instances the mortgage shall not exceed 85 per centum of the appraised value: And provided further, That the Commissioner shall prescribe such procedures as in his judgment are necessary to secure to families, referred to in subsection (a) above, priorities in occupancy of the remaining units of two-, three-, and four-family dwellings after occupancy of one unit by the owner; or”. (c) Section 221 (d) of such Act is further amended— (1) by striking out “$10,000” in paragraph (3) and inserting in lieu thereof “$12,000”; (2) by striking out of paragraph (3) “not in excess of the Commissioner’s estimate of the value of the property or project when constructed, or repaired and rehabilitated, for use as rental accommodations for ten or more families eligible for occupancy as provided in this section; and”, and inserting in lieu thereof “not in excess of (1) in the case of new construction, the amount which the Commissioner estimates will be the replacement cost of the property or project when the proposed improvements are completed (the replacement cost may include the land, the proposed physical improvements, utilities within the boundaries of the land, architect’s fees, taxes, interest during construction, and other miscellaneous charges incident to construction and approved by the Commissioner), or (2) in the case of repair and rehabilitation, the Commissioner’s estimate of the value of the property when the proposed repair and rehabilitation is completed: Provided,That such property or project, when constructed, or repaired and rehabilitated, shall be for use as rental accommodations for ten or more families eligible for occupancy as provided in this section; or ”; and (3) by redesignating paragraph (4) as paragraph (5) and inserting after paragraph (3) the following new paragraph: “(4) if executed by a mortgagor which is not a nonprofit organization, and which is approved by the Commissioner— “(i) not exceed $12,500,000; “(ii) not exceed $9,000 per family unit for such part of such property or project as may be attributable to dwelling use, except that the Commissioner may by regulation increase this amount to not to exceed $12,000 in any geographical area where he finds that cost levels so require; “(iii) not exceed (in the case of a property or project approved for mortgage insurance prior to the beginning of construction) 90 per centum of the amount which the Commissioner estimates will be the replacement cost of the property or project when the proposed improvements are completed (the replacement cost may include the land, the proposed physical improvements, utilities within the boundaries of the land, architect’s fees, taxes, interest during construction, and other miscellaneous charges incident to construction and approved by the Commissioner, and shall include an allowance for builder’s and sponsor’s profit and risk of 10 per centum of all of the foregoing items, except the land, unless the Commissioner, after certification that such allowance is unreasonable, shall by regulation prescribe a lesser percentage); and 73 Stat. 661 “(iv) not exceed 90 per centum of the Commissioner’s estimate of the value of the property or project when the proposed repair and rehabilitation is completed if the proceeds of the mortgage are to be used for the repair and rehabilitation of a property or project: Provided, That such property or project when constructed, or repaired and rehabilitated, shall be for use as rental accommodations for ten or more families eligible for occupancy as provided in this section: And provided further, That the Commissioner may, in his discretion, require the mortgagor to be regulated or restricted as to rents or sales, charges, capital structure, rate of return, and methods of operation, and for such purpose the Commissioner may make such contracts with and acquire for not to exceed $100 such stock or interest in any such mortgagor as the Commissioner may deem necessary to render effective such restrictions or regulations, with such stock or interest being paid for out of the Section 221 Housing Insurance Fund and being required to be redeemed by the mortgagor at par upon the termination of all obligations of the Commissioner under the insurance; and”. (d) Section 221(f) of such Act is amended by inserting the following before the period at the end thereof: “and may include such commercial and community facilities as the Commissioner deems adequate to serve the occupants”. (e) Section 221(g)(2) of such Act is amended by striking out “paragraph (3)” and inserting in lieu thereof “paragraph (3) or (4)”. (f) Section 212(a) of such Act is amended by adding at the end thereof the following new sentence: “The provisions of this section shall apply to the insurance under section 221 of any mortgage described in subsection (d) (4) thereof.”