experimental mortgage insurance program for new communities

experimental mortgage insurance program for new communities Sec. 401. (a) Title X of the National Housing Act is amended by inserting after section 1003 the following new section 1004 and redesignating the remaining sections accordingly: “new communities “Sec. 1004. (a) New communities consisting of developments, satisfying all other requirements under this title, may be approved under this section by the Secretary for mortgage insurance if they meet the requirements of subsection (b) of this section. “(b) A development shall be eligible for approval as a new community if the Secretary determines it will, in view of its size and scope, make a substantial contribution to the sound and economic growth of the area within which it is located in the form of— “(1) substantial economies, made possible through large-scale development, in the provision of improved residential sites; “(2) adequate housing to lie provided for those who would be employed in the community or the surrounding area; “(3) maximum accessibility from the new residential sites to industrial or other employment centers and commercial, recreational, and cultural facilities in or near the community; and “(4) maximum accessibility to any major central city in the area. 80 Stat. 1272 “(c) No development shall be approved as a new community by the Secretary under this section unless the construction of such development has been approved by the local governing body or bodies of the locality or localities in which it will be located and by the Governor of the State in which such locality or localities are situated: Provided,That if such locality or localities have been delegated general powers of local self-government by State law or State constitution, as determined by the Secretary, the approval of the Governor shall not be required. “(d) The aggregate amount of mortgages insured under this title with respect to new communities approved under this section and outstanding at any one time shall not exceed $250,000,000.” (b) No mortgage shall be insured under title X of the National Housing Act with respect to a new community approved under section 1004 of such Act (as added by subsection (a) of this section) after October 1, 1972, except pursuant to a commitment to insure entered into before that date.