§ 1713. — Rental housing insurance.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1713]
TITLE 12--BANKS AND BANKING
CHAPTER 13--NATIONAL HOUSING
SUBCHAPTER II--MORTGAGE INSURANCE
Sec. 1713. Rental housing insurance
(a) Definitions
As used in this section--
(1) The term ``mortgage'' means a first mortgage on real estate
in fee simple, or on the interest of either the lessor or lessee
thereof (A) under a lease for not less than ninety-nine years which
is renewable or (B) under a lease having a period of not less than
fifty years to run from the date the mortgage was executed, upon
which there is located or upon which there is to be constructed a
building or buildings designed principally for residential use, or
upon which there is located or to be constructed facilities for
manufactured homes, and the term ``first mortgage'' means such
classes of first liens as are commonly given to secure advances
(including but not being limited to advances during construction)
on, or the unpaid purchase price of, real estate under the laws of
the State, in which the real estate is located, together with the
credit instrument or instruments, if any, secured thereby, and may
be in the form of trust mortgages or mortgage indentures or deeds of
trust securing notes, bonds, or other credit instruments.
(2) The term ``mortgagee'' means the original lender under a
mortgage, and its successors and assigns, and includes the holders
of credit instruments issued under a trust mortgage or deed of trust
pursuant to which such holders act by and through a trustee therein
named.
(3) The term ``mortgagor'' means the original borrower under a
mortgage and its successors and assigns.
(4) The term ``maturity date'' means the date on which the
mortgage indebtedness would be extinguished if paid in accordance
with the periodic payments provided for in the mortgage.
(5) The term ``slum or blighted area'' means any area where
dwellings predominate which, by reason of dilapidation,
overcrowding, faulty arrangement or design, lack of ventilation,
light or sanitation facilities, or any combination of these factors,
are detrimental to safety, health, or morals.
(6) The term ``rental housing'' means housing, the occupancy of
which is permitted by the owner thereof in consideration of the
payment of agreed charges, whether or not, by the terms of the
agreement, such payment over a period of time will entitle the
occupant to the ownership of the premises or space in a manufactured
home court or park properly arranged and equipped to accommodate
manufactured homes.
(7) The term ``State'' includes the several States, and Puerto
Rico, the District of Columbia, Guam, the Trust Territory of the
Pacific Islands, American Samoa, and the Virgin Islands.
(b) Insurance of additional mortgages
In addition to mortgages insured under section 1709 of this title,
the Secretary is authorized to insure mortgages as defined in this
section (including advances on such mortgages during construction) which
cover property held by--
(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
(2) any other mortgagor approved by the Secretary. The Secretary
may, in the Secretary's discretion, require any such mortgagor to be
regulated or restricted as to rents or sales, charges, capital
structure, rate of return, and methods of operation so as to provide
reasonable rentals to tenants and a reasonable return on the
investment. Any such regulations or restrictions shall continue for
such period or periods as the Secretary, in the Secretary's
discretion, may require, including until the termination of all
obligations of the Secretary under the insurance and during such
further period of time as the Secretary shall be the owner, holder,
or reinsurer of the mortgage. The Secretary may make such contracts
with and acquire, for not to exceed $100, such stock or interest in
the mortgagor as he may deem necessary to render effective any such
regulations or restrictions. The stock or interest acquired by the
Secretary shall be paid for out of the General Insurance Fund, and
shall be redeemed by the mortgagor at par upon the termination of
all obligations of the Secretary under the insurance.
The insurance of mortgages under this section is intended to
facilitate particularly the production of rental accommodations, at
reasonable rents, of design and size suitable for family living. The
Secretary is, therefore, authorized in the administration of this
section to take action, by regulation or otherwise, which will direct
the benefits of mortgage insurance hereunder primarily to those projects
which make adequate provision for families with children, and in which
every effort has been made to achieve moderate rental charges.
Notwithstanding any other provisions of this section, the Secretary
may not insure any mortgage under this section (except a mortgage with
respect to a manufactured home park designed exclusively for occupancy
by elderly persons) unless the mortgagor certifies under oath that in
selecting tenants for the property covered by the mortgage he will not
discriminate against any family by reason of the fact that there are
children in the family, and that he will not sell the property while the
insurance is in effect unless the purchaser so certifies, such
certification to be filed with the Secretary. Violation of any such
certification shall be a misdemeanor punishable by a fine of not to
exceed $500.
(c) Eligibility for insurance; mortgage limits
To be eligible for insurance under this section a mortgage on any
property or project shall involve a principal obligation in an amount--
(1) Repealed. Pub. L. 93-383, title III, Sec. 304(a)(1), Aug.
22, 1974, 88 Stat. 677.
(2) Not to exceed 90 per centum of the estimated value of the
property or project (when the proposed improvements are completed):
Provided, That this limitation shall not apply to mortgages on
housing in Alaska or in Guam, but such a mortgage may involve a
principal obligation in an amount not to exceed 90 per centum of the
amount which the Secretary estimates will be the replacement cost of
the property or project when the proposed improvements are completed
(the value of the property or project as such term is used in this
paragraph may include the land, the proposed physical improvements,
utilities within the boundaries of the property or project,
architect's fees, taxes, and interest accruing during construction,
and other miscellaneous charges incident to construction and
approved by the Secretary): And provided further, That nothing
contained in this section shall preclude the insurance of mortgages
covering existing construction located in slum or blighted areas, as
defined in paragraph (5) of subsection (a) of this section, and the
Secretary may require such repair or rehabilitation work to be
completed as is, in his discretion, necessary to remove conditions
detrimental to safety, health, or morals; and
(3)(A) Not to exceed, for such part of the property or project
as may be attributable to dwelling use (excluding exterior land
improvements as defined by the Secretary), $38,025 per family unit
without a bedroom, $42,120 per family unit with one bedroom, $50,310
per family unit with two bedrooms, $62,010 per family unit with
three bedrooms, and $70,200 per family unit with four or more
bedrooms, or not to exceed $11,250 per space; except that as to
projects to consist of elevator type structures the Secretary may in
his discretion, increase the dollar amount limitations per family
unit to not to exceed $43,875 per family unit without a bedroom,
$49,140 per family unit with one bedroom, $60,255 per family unit
with two bedrooms, $75,465 per family unit with three bedrooms, and
$85,328 per family unit with four or more bedrooms, as the case may
be, to compensate for the higher costs incident to the construction
of elevator-type structures of sound standards of construction and
design;
(B) the Secretary may, by regulation, increase any of the dollar
amount limitations in subparagraph (A) (as such limitations may have
been adjusted in accordance with section 1712a of this title) by not
to exceed 110 percent in any geographical area where the Secretary
finds that cost levels so require and by not to exceed 140 percent
where the Secretary determines it necessary on a project-by-project
basis, but in no case may any such increase exceed 90 percent where
the Secretary determines that a mortgage purchased or to be
purchased by the Government National Mortgage Association in
implementing its special assistance functions under section 1720 \1\
of this title (as such section existed immediately before November
30, 1983) is involved. Notwithstanding any other provision of this
paragraph, the amount which may be insured under this section may be
increased by up to 20 percent if such increase is necessary to
account for the increased cost of the project due to the
installation therein of a solar energy system (as defined in
subparagraph (3) of the last paragraph of section 1703(a) of this
title) or residential energy conservation measures (as defined in
section 8211(11)(A) through (G) and (I) of title 42) \1\ in cases
where the Secretary determines that such measures are in addition to
those required under the minimum property standards and will be
cost-effective over the life of the measure.
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\1\ See References in Text note below.
The mortgage shall provide for complete amortization by periodic
payments (unless otherwise approved by the Secretary) within such term
as the Secretary shall prescribe, and shall bear interest at such rate
as may be agreed upon by the mortgagor and the mortgagee. The Secretary
may consent to the release of a part or parts of the mortgaged property
from the lien of the mortgage upon such terms and conditions as he may
prescribe and the mortgage may provide for such release. No mortgage
shall be accepted for insurance under this section or section 1715a \1\
of this title unless the Secretary finds that the property or project,
with respect to which the mortgage is executed, is economically sound.
Such property or project may include five or more family units and may
include such commercial and community facilities as the Secretary deems
adequate to serve the occupants.
(d) Premium, appraisal, and inspection charges
The Secretary shall collect a premium charge for the insurance of
mortgages under this section which shall be payable annually in advance
by the mortgagee, either in cash or in debentures issued by the
Secretary under any subchapter and section of this chapter, except
debentures of the Mutual Mortgage Insurance Fund, or of the Cooperative
Management Housing Insurance Fund at par plus accrued interest. In
addition to the premium charge herein provided for the Secretary is
authorized to charge and collect such amounts as he may deem reasonable
for the appraisal of a property or project offered for insurance and for
the inspection of such property or project during construction:
Provided, That such charges for appraisal and inspection shall not
aggregate more than 1 per centum of the original principal face amount
of the mortgage.
(e) Adjusted premium charge on payment of mortgage
In the event that the principal obligation of any mortgage accepted
for insurance under this section is paid in full prior to the maturity
date, the Secretary is authorized in his discretion to require the
payment by the mortgagee of an adjusted premium charge in such amount as
the Secretary determines to be equitable, but not in excess of the
aggregate amount of the premium charges that the mortgagee would
otherwise have been required to pay if the mortgage had continued to be
insured until such maturity date.
(f) Repealed. Pub. L. 89-117, title XI, Sec. 1108(e)(3), Aug. 10, 1965,
79 Stat. 504
(g) Payment of insurance after default
The failure of the mortgagor to make any payment due under or
provided to be paid by the terms of a mortgage insured under this
section shall be considered a default under such mortgage and, if such
default continues for a period of thirty days, the mortgagee shall be
entitled to receive the benefits of the insurance as hereinafter
provided, upon assignment, transfer, and delivery to the Secretary,
within a period and in accordance with rules and regulations to be
prescribed by the Secretary of (1) all rights and interests arising
under the mortgage so in default; (2) all claims of the mortgagee
against the mortgagor or others, arising out of the mortgage
transactions; (3) all policies of title or other insurance or surety
bonds or other guaranties and any and all claims thereunder; (4) any
balance of the mortgage loans not advanced to the mortgagor; (5) any
cash or property held by the mortgagee, or to which it is entitled, as
deposits made for the account of the mortgagor and which have not been
applied in reduction of the principal of the mortgage indebtedness; and
(6) all records, documents, books, papers, and accounts relating to the
mortgage transactions. Upon such assignment, transfer, and delivery the
obligation of the mortgagee to pay the premium charges for mortgage
insurance shall cease, and the Secretary shall issue to the mortgagee a
certificate of claim as provided in subsection (h) of this section, and
debentures having a par value equal to the original principal face
amount of the mortgage plus such amount as the mortgagee may have paid
for (A) taxes, special assessments, and water rates, which are liens
prior to the mortgage; (B) insurance on the property; and (C) reasonable
expenses for the completion and preservation of the property and any
mortgage insurance premiums paid after default, less the sum of (i) that
part of the amount of the principal obligation that has been repaid by
the mortgagor, (ii) an amount equivalent to 1 per centum of the unpaid
amount of such principal obligation, and (iii) any net income received
by the mortgagee from the property: Provided, That the mortgagee in the
event of a default under the mortgage may, at its option and in
accordance with regulations of, and in a period to be determined by, the
Secretary, proceed to foreclose on and obtain possession of or otherwise
acquire such property from the mortgagor after default, and receive the
benefits of the insurance as herein provided, upon (1) the prompt
conveyance to the Secretary of title to the property which meets the
requirements of the rules and regulations of the Secretary in force at
the time the mortgage was insured and which is evidenced in the manner
prescribed by such rules and regulations, and (2) the assignment to him
of all claims of the mortgagee against the mortgagor or others, arising
out of the mortgage transaction or foreclosure proceedings, except such
claims that may have been released with the consent of the Secretary.
Upon such conveyance and assignment, the obligation of the mortgagee to
pay the premium charges for insurance shall cease and the mortgagee
shall be entitled to receive the benefits of the insurance as provided
in this subsection, except that in such event the 1 per centum
deduction, set out in (ii) hereof, shall not apply. Notwithstanding any
other provision of this chapter, upon receipt, after September 2, 1964,
of an application for insurance benefits on a mortgage insured under
this chapter, the Secretary may terminate the mortgagee's obligation to
pay premium charges on the mortgage.
(h) Certificate of claim; division of excess proceeds
The certificate of claim issued under this section shall be for an
amount which the Secretary determines to be sufficient, when added to
the face value of the debentures issued and the cash adjustment paid to
the mortgagee, to equal the amount which the mortgagee would have
received if, on the date of the assignment, transfer and delivery to the
Secretary provided for in subsection (g) of this section, the mortgagor
had extinguished the mortgage indebtedness by payment in full of all
obligations under the mortgage and a reasonable amount for necessary
expenses incurred by the mortgagee in connection with the foreclosure
proceedings, or the acquisition of the mortgaged property otherwise, and
the conveyance thereof to the Secretary. Each such certificate of claim
shall provide that there shall accrue to the holder of such certificate
with respect to the face amount of such certificate, an increment at the
rate of 3 per centum per annum which shall not be compounded. If the net
amount realized from the mortgage, and all claims in connection
therewith, so assigned, transferred, and delivered, and from the
property covered by such mortgage and all claims in connection with such
property, after deducting all expenses incurred by the Secretary in
handling, dealing with, acquiring title to, and disposing of such
mortgage and property and in collecting such claims, exceeds the face
value of the debentures issued and the cash adjustment paid to the
mortgagee plus all interest paid on such debentures, such excess shall
be divided as follows:
(1) If such excess is greater than the total amount payable
under the certificate of claim issued in connection with such
property, the Secretary shall pay to the holder of such certificate
the full amount so payable, and any excess remaining thereafter
shall be retained by the Secretary and credited to the General
Insurance Fund; and
(2) If such excess is equal to or less than the total amount
payable under such certificate of claim, the Secretary shall pay to
the holder of such certificate the full amount of such excess.
(i) Debentures; execution; negotiability; terms; tax exemptions
Debentures issued under this section shall be executed in the name
of the General Insurance Fund as obligor, shall be negotiable, and, if
in book entry form, transferable, in the manner described by the
Secretary in regulations, and shall be dated as of the date of default
as determined in subsection (g) of this section, except that debentures
issued pursuant to the provisions of section 1715k(f), section 1715l(g),
and section 1715x of this title may be dated as of the date the mortgage
is assigned (or the property is conveyed) to the Secretary and shall
bear interest from such date. They shall bear interest at a rate
established by the Secretary pursuant to section 1715o of this title
payable semiannually on the 1st day of January and the 1st day of July
of each year, and shall mature twenty years after the date thereof. Such
debentures as are issued in exchange for mortgages insured after
February 3, 1938, shall be exempt, both as to principal and interest,
from all taxation (except surtaxes, estate, inheritance, and gift taxes)
now or hereafter imposed by the United States, by any Territory,
dependency, or possession thereof, or by any State, county,
municipality, or local taxing authority. They shall be paid out of the
General Insurance Fund which shall be primarily liable therefor, and
they shall be fully and unconditionally guaranteed as to principal and
interest by the United States, and, in the case of debentures issued in
certificated registered form, such guaranty shall be expressed on the
face of the debentures. In the event the General Insurance Fund fails to
pay upon demand, when due, the principal of or interest on any
debentures so guaranteed, the Secretary of the Treasury shall pay to the
holders the amount thereof which is authorized to be appropriated out of
any money in the Treasury not otherwise appropriated, and thereupon, to
the extent of the amount so paid, the Secretary of the Treasury shall
succeed to all the rights of the holders of such debentures.
(j) Debentures; form and amounts
Debentures issued under this section--
(1) shall be in such form and amounts;
(2) shall be subject to such terms and conditions;
(3) shall include such provisions for redemption, if any, as may
be prescribed by the Secretary of Housing and Urban Development,
with the approval of the Secretary of the Treasury; and
(4) may be in book entry or certificated registered form, or
such other form as the Secretary of Housing and Urban Development
may prescribe in regulations.
(k) Acquisition of property by conveyance or foreclosure
The Secretary is authorized either to (1) acquire possession of and
title to any property, covered by a mortgage insured under this section
and assigned to him, by voluntary conveyance in extinguishment of the
mortgage indebtedness, or (2) institute proceedings for foreclosure on
the property covered by any such insured mortgage and prosecute such
proceedings to conclusion. The Secretary at any sale under foreclosure
may, in his discretion, for the protection of the General Insurance
Fund, bid any sum up to but not in excess of the total unpaid
indebtedness secured by the mortgage, plus taxes, insurance, foreclosure
costs, fees, and other expenses, and may become the purchaser of the
property at such sale. In determining the amount to be bid, the
Secretary shall act consistently with the goal established in section
1701z-11(a)(1) of this title. The Secretary is authorized to pay from
the General Insurance Fund such sums as may be necessary to defray such
taxes, insurance, costs, fees, and other expenses in connection with the
acquisition or foreclosure of property under this section. Pending such
acquisition by voluntary conveyance or by foreclosure, the Secretary is
authorized, with respect to any mortgage assigned to him under the
provisions of subsection (g) of this section, to exercise all the rights
of a mortgagee under such mortgage, including the right to sell such
mortgage, and to take such action and advance such sums as may be
necessary to preserve or protect the lien of such mortgage.
(l) Handling and disposal of property; settlement of claims
Notwithstanding any other provisions of law relating to the
acquisition, handling, or disposal of real and other property by the
United States, the Secretary shall also have power, for the protection
of the interests of the General Insurance Fund, to pay out of the
General Insurance Fund all expenses or charges in connection with, and
to deal with, complete, reconstruct, rent, renovate, modernize, insure,
make contracts for the management of, or establish suitable agencies for
the management of, or sell for cash or credit or lease in his
discretion, any property acquired by him under this section, and
notwithstanding any other provision of law, the Secretary shall also
have power to pursue to final collection by way of compromise or
otherwise all claims assigned and transferred to him in connection with
the assignment, transfer, and delivery provided for in this section, and
at any time, upon default, to foreclose on any property secured by any
mortgage assigned and transferred to or held by him: Provided, That
section 5 of title 41 shall not be construed to apply to any contract
for hazard insurance, or to any purchase or contract for services or
supplies on account of such property if the amount thereof does not
exceed $1,000.
(m) Repealed. Pub. L. 89-117, title XI, Sec. 1108(e)(3), Aug. 10, 1965,
79 Stat. 504
(n) Default or payment; rights of parties
In the event that a mortgage insured under this section becomes in
default through failure of the mortgagor to make any payment due under
or provided to be paid by the terms of the mortgage and such mortgage
continues in default for a period of thirty days, but the mortgagee does
not foreclose on or otherwise acquire the property, or does not assign
and transfer such mortgage and the credit instrument secured thereby to
the Secretary, in accordance with subsection (g) of this section, and
the Secretary is given written notice thereof, or in the event that the
mortgagor pays the obligation under the mortgage in full prior to the
maturity thereof, and the mortgagee pays any adjusted premium charge
required under the provisions of subsection (e) of this section, and the
Secretary is given written notice by the mortgagee of the payment of
such obligation, the obligation to pay the annual premium charge for
insurance shall cease, and all rights of the mortgagee and the mortgagor
under this section shall terminate as of the date of such notice.
(o) Reissue of prior insurance
The Secretary, with the consent of the mortgagee and the mortgagor
of a mortgage insured under this section prior to February 3, 1938,
shall be empowered to reissue such mortgage insurance in accordance with
the provisions of this section as amended by the National Housing Act
Amendments of 1938, and any such insurance not so reissued shall not be
affected by the enactment of such Act.
(p) Repealed. Pub. L. 89-117, title XI, Sec. 1108(e)(3), Aug. 10, 1965,
79 Stat. 504
(q) Repealed. Pub. L. 85-104, title I, Sec. 111, July 12, 1957, 71 Stat.
297
(r) Service charge for mortgages assigned to and held by the Secretary
Notwithstanding any other provision of this chapter, the Secretary
is authorized to include in any mortgage insured under any subchapter of
this chapter after September 23, 1959, a provision requiring the
mortgagor to pay a service charge to the Secretary in the event such
mortgage is assigned to and held by the Secretary. Such service charge
shall not exceed the amount prescribed by the Secretary for mortgage
insurance premiums applicable to such mortgage.
(June 27, 1934, ch. 847, title II, Sec. 207, 48 Stat. 1252; Aug. 23,
1935, ch. 614, title III, Sec. 344(d), 49 Stat. 722; Feb. 3, 1938, ch.
13, Sec. 3, 52 Stat. 16; June 3, 1939, ch. 175, Sec. 12, 53 Stat. 807;
Mar. 28, 1941, ch. 31, Sec. 4(b), 55 Stat. 62; July 1, 1948, ch. 784,
Sec. 6, 62 Stat. 1209; Aug. 10, 1948, ch. 832, title I, Sec. 101 (m-p,
r), 62 Stat. 1273, 1274; Apr. 20, 1950, ch. 94, title I, Secs. 106-112,
122, 64 Stat. 52-54, 59; Sept. 1, 1951, ch. 378, title VI, Secs. 604(b),
605, 65 Stat. 314; July 14, 1952, ch. 723, Sec. 10(a)(2), 66 Stat. 603;
June 30, 1953, ch. 170, Sec. 5, 67 Stat. 122; Aug. 2, 1954, ch. 649,
title I, Secs. 112(b), 115-117, 68 Stat. 593-595; Aug. 11, 1955, ch.
783, title I, Sec. 102(b), (c), 69 Stat. 635; Aug. 7, 1956, ch. 1029,
title I, Secs. 103, 104(b), (c), 70 Stat. 1092; Pub. L. 85-104, title I,
Secs. 108(b), 109-111, July 12, 1957, 71 Stat. 297; Pub. L. 86-70,
Sec. 10(a), (b), June 25, 1959, 73 Stat. 142; Pub. L. 86-372, title I,
Sec. 104, Sept. 23, 1959, 73 Stat. 655; Pub. L. 86-624, Sec. 6, July 12,
1960, 74 Stat. 411; Pub. L. 87-70, title VI, Sec. 607, June 30, 1961, 75
Stat. 178; Pub. L. 88-560, title I, Secs. 105(b), 106, 107(a), 108,
Sept. 2, 1964, 78 Stat. 772, 774, 776; Pub. L. 89-117, title II,
Sec. 207(a), title XI, Sec. 1108(e), Aug. 10, 1965, 79 Stat. 467, 504;
Pub. L. 90-19, Sec. 1(a)(3), May 25, 1967, 81 Stat. 17; Pub. L. 90-301,
Sec. 3(b), May 7, 1968, 82 Stat. 114; Pub. L. 91-152, title I,
Secs. 103(a), (b), 113(b), title IV, Sec. 403(c)(2), Dec. 24, 1969, 83
Stat. 380, 383, 395; Pub. L. 93-383, title III, Secs. 303(a), 304(a),
Aug. 22, 1974, 88 Stat. 676, 677; Pub. L. 94-173, Sec. 3, Dec. 23, 1975,
89 Stat. 1027; Pub. L. 94-375, Sec. 8(a), (b)(1), Aug. 3, 1976, 90 Stat.
1071; Pub. L. 95-557, title III, Sec. 311(a), Oct. 31, 1978, 92 Stat.
2098; Pub. L. 95-619, title II, Sec. 248(b), Nov. 9, 1978, 92 Stat.
3235; Pub. L. 96-153, title III, Secs. 313(b), 314, Dec. 21, 1979, 93
Stat. 1117; Pub. L. 96-399, title III, Secs. 308(c)(1), 310(a), Oct. 8,
1980, 94 Stat. 1640, 1641; Pub. L. 97-35, title III, Secs. 338(b),
339B(a), (c), Aug. 13, 1981, 95 Stat. 416, 417; Pub. L. 97-377, title I,
Sec. 101(g), Dec. 21, 1982, 96 Stat. 1908; Pub. L. 98-181, title IV,
Secs. 404(b)(4), 407(c), 431(a), 435, 446(a), Nov. 30, 1983, 97 Stat.
1209, 1211, 1220, 1222, 1228; Pub. L. 98-479, title II, Sec. 204(a)(3),
Oct. 17, 1984, 98 Stat. 2232; Pub. L. 100-242, title I, Sec. 182, title
IV, Sec. 426(a), (h), Feb. 5, 1988, 101 Stat. 1871, 1915, 1916; Pub. L.
102-550, title V, Secs. 509(a), 516(b), Oct. 28, 1992, 106 Stat. 3782,
3790; Pub. L. 103-233, title III, Sec. 306, Apr. 11, 1994, 108 Stat.
373; Pub. L. 107-73, title II, Sec. 213(a), Nov. 26, 2001, 115 Stat.
676; Pub. L. 107-326, Sec. 5(b)(1), Dec. 4, 2002, 116 Stat. 2794.)
References in Text
Section 1715a of this title, referred to in subsec. (c), which
related to additional housing insurance, was repealed by act June 3,
1939, ch. 175, Sec. 13, 53 Stat. 807.
Section 1720 of this title, referred to in subsec. (c)(3)(B), was
repealed by Pub. L. 98-181, title IV, Sec. 483(a), Nov. 30, 1983, 97
Stat. 1240.
Section 8211 of title 42, referred to in subsec. (c)(3)(B), was
omitted from the Code pursuant to section 8229 of Title 42, The Public
Health and Welfare, which terminated authority under that section on
June 30, 1989.
The National Housing Act Amendments of 1938, referred to in subsec.
(o), is act Feb. 3, 1938, ch. 13, 42 Stat. 8, as amended, section 3 of
which amended this section generally. For complete classification of
this Act to the Code, see section 1701a of this title and Tables.
Codification
References to ``mobile homes'', wherever appearing in text, were
changed to ``manufactured homes'' in view of the amendment of the
National Housing Act by section 308(c)(1) of Pub. L. 96-399 requiring
the substitution of ``manufactured home'' for ``mobile home'' wherever
appearing in the National Housing Act, and section 339B(c) of Pub. L.
97-35 (set out as a note under section 1703 of this title) providing
that the terms ``mobile home'' and ``manufactured home'' shall be deemed
to include the terms ``mobile homes'' and ``manufactured homes'',
respectively.
Amendments
2002--Subsec. (c)(3). Pub. L. 107-326, Sec. 5(b)(1)(B), which
directed substitution of ``(B) the Secretary may, by regulation,
increase any of the dollar amount limitations in subparagraph (A) (as
such limitations may have been adjusted in accordance with section 1712a
of this title)'' for ``and accept that the Secretary'' through ``in this
paragraph'', was executed by making the substitution for ``and except
that the Secretary may, by regulation, increase any of the foregoing
dollar amount limitations contained in this paragraph'', to reflect the
probable intent of Congress.
Pub. L. 107-326, Sec. 5(b)(1)(A), inserted subpar. (A) designation
after ``(3)''.
2001--Subsec. (c)(3). Pub. L. 107-73 substituted ``$38,025'',
``$42,120'', ``$50,310'', ``$62,010'', and ``$70,200'' for ``$30,420'',
``$33,696'', ``$40,248'', ``$49,608'', and ``$56,160'', respectively,
``$11,250'' for ``$9,000'', and ``$43,875'', ``$49,140'', ``$60,255'',
``$75,465'', and ``$85,328'' for ``$35,100'', ``$39,312'', ``$48,204'',
``$60,372'', and ``$68,262'', respectively.
1994--Subsec. (c)(3). Pub. L. 103-233 substituted ``$56,160'' for
``$59,160''.
1992--Subsec. (c)(3). Pub. L. 102-550, Sec. 509(a), substituted
``$30,420'', ``$33,696'', ``$40,248'', ``$49,608'', and ``$59,160'' for
``$25,350'', ``$28,080'', ``$33,540'', ``$41,340'', and ``$46,800'',
respectively, and ``$35,100'', ``$39,312'', ``$48,204'', ``$60,372'',
and ``$68,262'' for ``$29,250'', ``$32,760'', ``$40,170'', ``$50,310'',
and ``$56,885'', respectively.
Subsec. (g). Pub. L. 102-550, Sec. 516(b)(1), in second sentence,
substituted ``issue to the mortgagee a certificate of claim as provided
in subsection (h) of this section, and debentures having a par value''
for ``, subject to the cash adjustment provided for in subsection (j) of
this section, issue to the mortgagee a certificate of claim as provided
in subsection (h) of this section, and debentures having a total face
value''.
Subsec. (i). Pub. L. 102-550, Sec. 516(b)(2), (3), in first
sentence, substituted ``shall be negotiable, and, if in book entry form,
transferable, in the manner described by the Secretary in regulations''
for ``shall be signed by the Secretary, by either his written or
engraved signature, shall be negotiable'', and in fourth sentence
substituted ``and, in the case of debentures issued in certificated
registered form, such guaranty'' for ``and such guaranty''.
Subsec. (j). Pub. L. 102-550, Sec. 516(b)(4), added subsec. (j) and
struck out former subsec. (j) which read as follows: ``Debentures issued
under this section shall be in such form and denominations in multiples
of $50, shall be subject to such terms and conditions, and shall include
such provision for redemption, if any, as may be prescribed by the
Secretary with the approval of the Secretary of the Treasury, and may be
in coupon or registered form. Any difference between the amount of
debentures to which the mortgagee is entitled under this section, and
the aggregate face value of the debentures issued, not to exceed $50,
shall be adjusted by the payment of cash by the Secretary to the
mortgagee from the General Insurance Fund.''
1988--Subsec. (c)(3). Pub. L. 100-242, Sec. 426(a), (h), substituted
``$25,350'', ``$28,080'', ``$33,540'', ``$41,340'', and ``$46,800'' for
``$19,500'', ``$21,600'', ``$25,800'', ``$31,800'', and ``$36,000'',
respectively, and ``$29,250'', ``$32,760'', ``$40,170'', ``$50,310'',
and ``$56,885'' for ``$22,500'', ``$25,200'', ``$30,900'', ``$38,700'',
and ``$43,758'', respectively, and substituted ``not to exceed 110
percent in any geographical area where the Secretary finds that cost
levels so require and by not to exceed 140 percent where the Secretary
determines it necessary on a project-by-project basis, but in no case
may any such increase exceed 90 percent where the Secretary determines
that a mortgage purchased or to be purchased by the Government National
Mortgage Association in implementing its special assistance functions
under section 1720 of this title (as such section existed immediately
before November 30, 1983) is involved'' for ``not to exceed 75 per
centum in any geographical area where he finds that cost levels so
require, except that, where the Secretary determines it necessary on a
project by project basis, the foregoing dollar amount limitations
contained in this paragraph may be exceeded by not to exceed 90 per
centum (by not to exceed 140 per centum where the Secretary determines
that a mortgage other than one purchased or to be purchased under
section 1720 of this title by the Government National Mortgage
Association in implementing its special assistance functions is
involved) in such an area.''
Subsec. (k). Pub. L. 100-242, Sec. 182, inserted provisions after
second sentence directing the Secretary to act consistently with the
goal established in section 1701z-11(a)(1) of this title in determining
the amount to be bid.
1984--Subsec. (i). Pub. L. 98-479 substituted ``section 1715k(f),
section 1715l(g), and section 1715x of this title'' for ``section
1715k(f), 1715l(g), and section 1715x of this title''.
1983--Subsec. (a)(7). Pub. L. 98-181, Sec. 407(c), inserted
``American Samoa,'' after ``Pacific Islands,''.
Subsec. (b). Pub. L. 98-181, Sec. 431(a)(3), in first undesignated
par. following par. (2) struck out ``and directed'' after ``therefore,
authorized''.
Pub. L. 98-181, Sec. 435, in second undesignated par. following par.
(2) substituted ``the Secretary may not insure any mortgage under this
section (except a mortgage with respect to a manufactured home park
designed exclusively for occupancy by elderly persons)'' for ``no
mortgage shall be insured hereunder''.
Subsec. (b)(2). Pub. L. 98-181, Sec. 431(a)(1), (2), substituted
provision permitting the Secretary discretionary authority to regulate
rents and other charges for such period or periods as the Secretary, in
his discretion, may require for provision which required the Secretary
to regulate rents and other charges until the termination of all
obligations of the Secretary under the insurance and during such further
time as the Secretary was owner, holder, or reinsurer of the mortgage,
and substituted ``any such regulations and restrictions'' for ``the
regulations and restrictions''.
Subsec. (c). Pub. L. 98-181, Sec. 446(a), which directed that
``(unless otherwise approved by the Secretary)'' be inserted after
``periodic payments'' in first undesignated par. of par. (3), was
executed to the undesignated par. following par. (3) to reflect the
probable intent of Congress.
Pub. L. 98-181, Sec. 404(b)(4), which directed the substitution of
provision that the interest rate for the mortgage be such a rate as
agreed upon by the mortgagor and mortgagee for provision that the rate
of interest, exclusive of premium charges for insurance, not exceed 5\1/
4\ per centum per annum on the amount of the principal obligation
outstanding at any time, or not exceed such per centum per annum not in
excess of 6 per centum per annum as the Secretary finds necessary to
meet the mortgage market in first undesignated par. of par. (3), was
executed to the undesignated par. following par. (3) to reflect the
probable intent of Congress.
1982--Subsec. (c)(3). Pub. L. 97-377 inserted ``(by not to exceed
140 per centum where the Secretary determines that a mortgage other than
one purchased or to be purchased under section 1720 of this title by the
Government National Mortgage Association in implementing its special
assistance functions is involved)'' after ``90 per centum''.
1981--Subsec. (c)(3). Pub. L. 97-35, Secs. 338(b), 339B(a),
substituted ``$9,000'' for ``$8,000'' and made minor changes in
nomenclature.
1980--Subsec. (a)(1), (6). Pub. L. 96-399, Sec. 308(c)(1),
substituted ``manufactured'' for ``mobile''.
Subsec. (c)(3). Pub. L. 96-399, Sec. 310(a), inserted provisions
relating to residential energy conservation measures.
1979--Subsec. (c)(3). Pub. L. 96-153, Secs. 313(b), 314, in first
sentence of first unnumbered par. substituted ``$8,000'' for ``$3,900'',
``75 per centum'' for ``50 per centum'' and inserted exception that
where the Secretary determines it necessary on a project by project
basis, the dollar amount limitations may be exceeded by not to exceed 90
per centum in such an area.
1978--Subsec. (c). Pub. L. 95-557 substituted ``may include five''
for ``may include eight'' in concluding par.
Subsec. (c)(3). Pub. L. 95-619 provided that the amount insurable
under this section could be increased by up to 20 per centum if such
increase were necessary to account for the increased cost of a residence
due to the installation of a solar energy system.
1976--Subsec. (c)(3). Pub. L. 94-375 substituted ``50 per centum in
any geographical area'' for ``75 per centum in any geographical area'',
``$19,500'' for ``$13,000'', ``$21,600'' for ``$18,000'', ``$25,800''
for ``$21,500'', ``$31,800'' for ``$26,500'', ``$36,000'' for
``$30,000'', ``$3,900'' for ``$3,250'', ``$22,500'' for ``$15,000'',
``$25,200'' for ``$21,000'', ``$30,900'' for ``$25,750'', ``$38,700''
for ``$32,250'', and ``$43,758'' for ``$36,465''.
1975--Subsec. (c)(3). Pub. L. 94-173 raised from 45 per centum to 75
per centum the amount by which any dollar limitation may, by regulation,
be increased.
1974--Subsec. (c)(1). Pub. L. 93-383, Sec. 304(a)(1), struck out
par. (1) which set forth limits on principal obligation of not to exceed
$20,000,000, or not to exceed $50,000,000 if executed by a mortgagor
under subsec. (b)(1) of this section.
Subsec. (c)(3). Pub. L. 93-383, Secs. 303(a), 304(a)(2), substituted
``$3,250'' for ``$2,500'', ``$13,000'' for ``$9,900'', ``$15,000'' for
``$11,550'', ``$18,000'' for ``$13,750'', ``$21,000'' for ``$16,500'',
``$21,500'' for ``$16,500'', ``$25,750'' for ``$19,800'', ``$26,500''
for ``$20,350'', ``$30,000'' for ``$23,100'', ``$32,250'' for
``$24,750'', and ``$36,465'' for ``$28,050'', and struck out limitation
of $1,000,000 per mortgage for trailer courts or parks.
1969--Subsec. (a)(1). Pub. L. 91-152, Sec. 103(a)(1)(A), substituted
``mobile homes'' for ``trailer coach mobile dwellings''.
Subsec. (a)(6). Pub. L. 91-152, Sec. 103(a)(1)(B), (C), substituted
``mobile home court'' for ``trailer court'' and ``mobile homes'' for
``trailer coach mobile dwellings''.
Subsec. (a)(7). Pub. L. 91-152, Sec. 403(c)(2), inserted ``the Trust
Territory of the Pacific Islands,'' after ``Guam,''.
Subsec. (c)(3). Pub. L. 91-152, Secs. 103(a)(2), (b), 113(b)(1),
(2), substituted ``$2,500 per space or $1,000,000 per mortgage for
mobile home courts or parks'' for ``$1,800 per space or $500,000 per
mortgage for trailer courts or parks'', ``$9,900'' for ``$9,000'',
``$11,550'' for ``$10,500'', ``$13,750'' for ``$12,500,'' ``$16,500''
from ``$15,000'' wherever appearing therein, ``$19,800'' for
``$18,000'', ``$20,350'' for ``$18,500'', ``$23,100'' for ``$21,000'',
``$24,750'' for ``$22,500'', and ``$28,050'' for ``$25,500''.
1968--Subsec. (c)(3). Pub. L. 90-301 limited interest rate on
mortgages to such per centum per annum not in excess of 6 per centum as
the Secretary finds necessary to meet the mortgage market.
1967--Pub. L. 90-19 substituted ``Secretary'' for ``Commissioner''
wherever appearing in subsecs. (b), (b)(2), (c)(2), (3), (d), (e), (g),
(h), (h)(1), (h)(2), (h)(2)(i), (j) to (l), (n), (o), and (r).
1965--Subsec. (b). Pub. L. 89-117, Sec. 1108(e)(4), substituted
``General Insurance Fund'' for ``Housing Fund''.
Subsec. (c)(3). Pub. L. 89-117, Sec. 207(a), substituted ``$18,500
per family unit with three bedrooms, and $21,000 per family unit with
four or more bedrooms'' for ``and $18,500 per family unit with three or
more bedrooms'' and ``$22,500 per family unit with three bedrooms, and
$25,000 per family unit with four or more bedrooms'' for ``and $22,500
per family unit with three or more bedrooms''.
Subsec. (d). Pub. L. 89-117, Sec. 1108(e)(1), (2), removed reference
to collection of premium charges for the insurance of mortgages under
section 1715a of this title and substituted ``debentures issued by the
Commissioner under any subchapter and section of this chapter, except
debentures of the Mutual Mortgage Insurance Fund, or of the Cooperative
Management Housing Insurance Fund'' for ``debentures of the Housing
Insurance Fund issued by the Commissioner under this subchapter''.
Subsec. (f). Pub. L. 89-117, Sec. 1108(e)(3), repealed subsec. (f)
which created the Housing Insurance Fund.
Subsecs. (h) to (l). Pub. L. 89-117, Sec. 1108(e)(4), substituted
``General Insurance Fund'' for ``Housing Insurance Fund'' and ``Housing
Fund'' wherever appearing.
Subsec. (m). Pub. L. 89-117, Sec. 1108(e)(3), repealed subsec. (m)
which provided for credits and charges in the Housing Insurance Fund.
Subsec. (p). Pub. L. 89-117, Sec. 1108(e)(3), repealed subsec. (p)
which provided for the disposition of surplus moneys in the Housing
Insurance Fund and the investment of such moneys.
1964--Subsec. (c)(2). Pub. L. 88-560, Sec. 106, substituted
``Provided, That this limitation shall not apply'' for ``Provided, That
except with respect to a mortgage executed by a mortgagor coming within
the provisions of subsection (b)(1) of this section or a mortgage on a
trailer court or park, such mortgage shall not exceed the amount which
the Commissioner 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: Provided, further, That
this limitation shall not apply'' before ``to mortgages on housing in
Alaska.''
Subsec. (c)(3). Pub. L. 88-560, Sec. 107(a), changed limits on
mortgages for property or project attributable to dwelling use from
``$2,500 per room (or $9,000 per family unit if the number of rooms in
such property or project is less than four per family unit)'' to
``$9,000 per family unit without a bedroom, $12,500 per family unit with
one bedroom, $15,000 per family unit with two bedrooms, and $18,500 per
family unit with three or more bedrooms'', changed such mortgage limits
on project consisting of elevator-type structures from a sum ``of $2,500
per room to not exceed $3,000 per room and the dollar amount limitation
of $9,000 per family unit to not exceed $9,400 per family unit'' to
dollar amount limitations ``per family unit to not to exceed $10,500 per
family unit without a bedroom, $15,000 per family unit with one bedroom,
$18,000 per family unit with two bedrooms, and $22,500 per family unit
with three or more bedrooms'', and substituted provision authorizing an
increase ``by not to exceed 45 per centum'' of any of such limits
because of cost levels for former provision authorizing such an increase
``by not to exceed $1,250 per room without regard to the number of rooms
being less than four, or four or more''.
Subsec. (g). Pub. L. 88-560, Sec. 105(b), inserted provision for
termination of mortgagee's obligation to pay premium charges on the
mortgage.
Subsec. (k). Pub. L. 88-560, Sec. 108, struck out second sentence
providing for mandatory acquisition or foreclosure within one year of
multifamily project in default.
1961--Subsec. (b)(2). Pub. L. 87-70, Sec. 607(1), struck out
provisions from first paragraph which limited the Commissioner's
authority to insure mortgages to property held by private corporations,
associations, cooperative societies which are legal agents of owner-
occupants, or trusts formed or created for the purpose of rehabilitating
slum or blighted areas, or providing housing for rent or sale.
Subsec. (c)(3). Pub. L. 87-70, Sec. 607(2), (3), inserted
``(excluding exterior land improvements as defined by the
Commissioner)'' and substituted ``$1,800 per space'' for ``$1,500 per
space''.
Subsec. (i). Pub. L. 87-70, Sec. 607(4), permitted debentures issued
pursuant to the provisions of section 1715k(f), 1715l(g), and 1715x of
this title to be dated as of the date the mortgage is assigned (or the
property is conveyed) to the Commissioner.
1960--Subsec. (a)(7). Pub. L. 86-624 struck out ``Hawaii,'' before
``Puerto Rico''.
1959--Subsec. (a)(7). Pub. L. 86-70, Sec. 10(a), struck out
``Alaska,'' before ``Hawaii''.
Subsec. (b). Pub. L. 86-372, Sec. 104(e)(1), struck out exceptions
that related to housing for elderly persons from the two unnumbered
paragraphs following par. (2).
Subsec. (c). Pub. L. 86-372, Sec. 104(c), (e)(2), struck out
provisions that authorized insurance of mortgages not more than $8,100
if the entire property or project was specially designed for the use and
occupancy of elderly persons and the mortgagor is a financially
qualified nonprofit organization, and substituted in the unnumbered
paragraph following par. (3) ``5\1/4\ per centum per annum'' for ``4\1/
2\ per centum per annum''.
Subsec. (c)(1). Pub. L. 86-372, Sec. 104(a), substituted
``$20,000,000'' for ``$12,500,000''.
Subsec. (c)(2). Pub. L. 86-70, Sec. 10(b), substituted ``Alaska''
for ``the Territory of Alaska''.
Subsec. (c)(3). Pub. L. 86-372, Sec. 104(b), substituted ``$2,500''
for ``$2,250'' in two places, ``$9,000'' for ``$8,100'' in two places,
``$3,000'' for ``$2,700'', ``$9,400'' for ``$8,400'', ``$1,250 per
room'' for ``$1,000 per room'', ``$1,500 per space'' for ``$1,000 per
space'', and ``$500,000'' for ``$300,000''.
Subsec. (f). Pub. L. 86-372, Sec. 104(e)(3), substituted ``sections
1715a, 1715e, 1715v, and 1715w of this title'' for ``sections 1715a and
1715e of this title'' in two places.
Subsec. (r). Pub. L. 86-372, Sec. 104(d), added subsec. (r).
1957--Subsec. (c). Pub. L. 85-104, Sec. 110, inserted in unnumbered
paragraph following par. (3), ``(or $8,400 per family unit in the case
of projects to consist of elevator-type structures)'' and ``and may
permit single elderly persons to use and occupy such units''.
Subsec. (c)(3). Pub. L. 85-104, Sec. 109, struck out ``per room''
after ``limitations'', and inserted ``without regard to the number of
rooms being less than four, or four or more,''.
Subsec. (i). Pub. L. 85-104, Sec. 108(b), substituted in second
sentence, ``established by the Commissioner pursuant to section 1715o of
this title'' for ``determined by the Commissioner, with the approval of
the Secretary of the Treasury, at the time the mortgage was insured, but
not to exceed 3 per centum per annum''.
Subsec. (q). Pub. L. 85-104, Sec. 111, repealed provisions which
related to insurance of mortgages by Federal National Mortgage
Association. See section 1715e of this title.
1956--Subsec. (b). Act Aug. 7, 1956, Sec. 104(b), inserted ``(except
provisions relating to housing for elderly persons)'' before ``to take''
in paragraph following par. (2), and inserted ``(except with respect to
housing designed for elderly persons, with occupancy preference
therefor, as provided in the paragraph following paragraph (3) of
subsection (c) of this section)'' after ``hereunder'' in second
unnumbered par. following par. (2).
Subsec. (c). Act Aug. 7, 1956, Sec. 104(c), substituted provisions
of unnumbered par. following par. (3) that in certain housing for
elderly persons, the mortgage may involve a principal obligation of
$8,100 per family unit and 90 percent of the replacement cost, for
former provisions that if the number of bedrooms is equal or exceeds two
per family unit, and the principal obligation does not exceed $7,200 per
family unit, the mortgage may involve a principal obligation not in
excess of 90 percent of the value of the property.
Subsec. (c)(2). Act Aug. 7, 1956, Sec. 103(a), substituted ``90 per
centum'' for ``80 per centum''.
Subsec. (c)(3). Act Aug. 7, 1956, Sec. 103(b), increased limits on
mortgages from $2,000 per room to $2,250 per room, from $7,200 to $8,100
where the number of rooms in the project is less than 4 per family unit,
from $2,400 to $2,700 per room and $7,500 to $8,400 per family unit for
elevator type structures, and inserted provision allowing Commissioner
to increase dollar amount limitations by not to exceed $1,000 per room.
1955--Subsec. (a). Act Aug. 11, 1955, Sec. 102(b)(1), (2), inserted
provisions relating to trailer coach mobile dwellings in par. (1)(B),
and included space in a trailer court or park in the definition of
``rental housing'' in par. (6).
Subsec. (c). Act Aug. 11, 1955, Sec. 102(b)(5), amended last
paragraph to authorize insurance of mortgages on rental properties
having eight or more family units.
Subsec. (c)(1). Act Aug. 11, 1955, Sec. 102(c), increased from
$5,000,000 to $12,500,000 the limitation on the maximum amount of a
mortgage.
Subsec. (c)(2). Act Aug. 11, 1955, Sec. 102(b)(3), inserted ``or
mortgage on a trailer court or park''.
Subsec. (c)(3). Act Aug. 11, 1955, Sec. 102(b)(4), inserted ``or not
to exceed $1,000 per space or $300,000 per mortgage for trailer courts
or parks''.
1954--Subsec. (c)(2). Act Aug. 2, 1954, Sec. 115(1), (2), inserted
the proviso relating to mortgage insurance with respect to construction
in slum or blighted areas, and inserted the reference to Guam.
Subsec. (c)(3). Act Aug. 2, 1954, Sec. 115(3), struck out the
$10,000 per family-unit limitation, and inserted provisions permitting
an increase in the limitations of $2,000 per room and $7,200 per family
unit (less than four rooms) to $2,400, and $7,500, respectively, for
elevator-type structures.
Subsec. (d). Act Aug. 2, 1954, Sec. 116, inserted in first sentence
``of the Housing Insurance Fund'' after ``debentures''.
Subsec. (h). Act Aug. 2, 1954, Sec. 117, at end of first sentence,
inserted provision relating to inclusion of foreclosure costs, costs of
acquisition, and costs of conveyance to the Commissioner.
Subsec. (i). Act Aug. 2, 1954, Sec. 112(b), substituted in second
sentence a twenty-year period for the ten-year period, with respect to
the maturity of debentures.
1953--Subsec. (c). Act June 30, 1953, Sec. 5(a), added par.
following par. (3).
Subsec. (c)(2). Act June 30, 1953, Sec. 5(a), substituted ``80 per
centum of the estimated value of the property or project (when the
proposed improvements are completed)'' for limitation of 90 per centum
of value attributable to dwelling use up to $7,000 per family unit, 60
per centum of such value over $7,000 and up to $10,000, and 90 per
centum of value attributable to non-dwelling use.
Subsec. (c)(3). Act June 30, 1953, Sec. 5(a), substituted provisions
for maximum mortgage amount of $2,000 per room (or $7,200 per family
unit if the number of rooms does not equal or exceed four per family
unit), up to $10,000 per family unit, for provisions which fixed a
limitation of $8,100 per family unit (or $7,200 if the number of rooms
was less than four per family unit), provided for amortization of the
mortgage and rate of interest, provided for consent to release of part
of mortgaged property, prohibited acceptance of mortgages on properties
not economically sound, and provided for inclusion with mortgaged
properties adequate commercial and community facilities.
Subsec. (i). Act June 30, 1953, Sec. 5(b), substituted in second
sentence, ``ten'' years for ``twenty'' years.
1952--Subsec. (a)(7). Act July 14, 1952, inserted ``Guam,'' after
``District of Columbia,''.
1951--Subsec. (c)(2). Act Sept. 1, 1951, Sec. 605, in cl. (i),
substituted ``of the property or project attributable to dwelling use''
for ``of the property or project''; in cl. (ii), inserted ``and'' after
``unit''; and added cl. (iii).
Subsec. (c)(3). Act Sept. 1, 1951, Sec. 605, substituted ``four per
family unit'' for ``four and one-half per family unit''.
Subsec. (i). Act Sept. 1, 1951, Sec. 604(b), substituted in second
sentence the provision that such debentures shall mature twenty years
after the date thereof, for the provision that they should mature three
years after the first day of July following the maturity date of the
mortgage in exchange for which the debentures were issued.
1950--Act Apr. 20, 1950, Sec. 122, substituted ``Commissioner'' for
``Administrator'' wherever appearing.
Subsec. (b). Act Apr. 20, 1950, Sec. 106, added last two unnumbered
pars.
Subsec. (c)(2). Act Apr. 20, 1950, Sec. 107(1), provided that the
mortgage would not exceed 90% of the first $7,000 estimated value of the
property and 60% of such estimated value in excess of $7,000 and not in
excess of $10,000.
Subsec. (c)(3). Act Apr. 20, 1950, Sec. 107(2), (3), provided a
dollar mortgage limitation of $8,100 per family unit or $7,200 per
family unit if the number of rooms did not equal or exceed four and one-
half per family unit, and struck out ``, except that with respect to
mortgages insured under the provisions of the second proviso of
paragraph (2) of this subsection, which mortgages are authorized to have
a maturity of not exceeding forty years from the date of insurance of
the mortgage, such interest rate shall not exceed 4 per centum per
annum'' in first sentence of last par.
Subsec. (d). Act Apr. 20, 1950, Sec. 108, struck out ``one-half of''
before ``1 per centum'' in proviso.
Subsec. (f). Act Apr. 20, 1950, Sec. 109, inserted ``and section
1715e'' before ``of this title'' wherever appearing.
Subsec. (g). Act Apr. 20, 1950, Sec. 110, inserted ``and any
mortgage insurance premiums paid after default'' after ``preservation of
the property'' in cl. (C) of last sentence, and substituted proviso of
last sentence for the one reading ``That the mortgagee in event of a
default under the mortgage, may, at its option and in accordance with
rules and regulations to be prescribed by the Commissioner, proceed to
foreclose on or otherwise acquire the property as provided in the case
of a mortgage which is in default under section 1715a of this title and
receive the benefits of the insurance as provided in such section''.
Subsec. (h). Act Apr. 20, 1950, Sec. 111, substituted ``under this
section'' after ``claim issued'' in first sentence for ``by the
Commissioner to any mortgagee upon the assignment of the mortgage to the
Commissioner''.
Subsec. (i). Act Apr. 20, 1950, Sec. 112, struck out first sentence
and substituted ``Debentures issued under this section shall be executed
in the name of the Housing Insurance Fund as obligor, shall be signed by
the Commissioner by either his written or engraved signature, shall be
negotiable, and shall be dated as of the date of default as determined
in subsection (g) of this section and shall bear interest from such
date''.
1948--Subsec. (b)(1) Act Aug. 10, 1948, Sec. 101(m), substituted
``restricted by Federal or State laws or regulations of State banking or
insurance departments'' for ``formed under and restricted by Federal or
State housing laws''.
Subsec. (c). Act Aug. 10, 1948, Sec. 101(n)(1)-(3), amended first
sentence generally, inserted ``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'' at end of second sentence, and inserted last sentence.
Act July 1, 1948, inserted proviso.
Subsec. (g). Act Aug. 10, 1948, Sec. 101(o), substituted, in cl.
(ii), ``(1)'' for ``(2)''.
Subsec. (h). Act Aug. 10, 1948, Sec. 101(p), substituted ``retained
by the Housing Administrator and credited to the Housing Insurance
Fund'' for ``paid to the mortgagor of such property''.
Subsec. (q). Act Aug. 10, 1948, Sec. 101(r), added subsec. (q).
1941--Subsec. (a)(1). Act Mar. 28, 1941, Sec. 4(b)(1), struck out
``district or territory''.
Subsec. (a)(7). Act Mar. 28, 1941, Sec. 4(b)(2), added par. (7).
1939--Subsec. (c). Act June 3, 1939, amended first sentence
generally.
1938--Act of Feb. 3, 1938, amended section generally.
1935--Act Aug. 23, 1935, inserted ``property'' before ``project'' in
last sentence.
Effective Date of 1983 Amendment
Section 431(c) of Pub. L. 98-181 provided that: ``The amendments
made in this section [amending this section and section 1715y of this
title] shall not apply with respect to mortgages insured by the
Secretary of Housing and Urban Development before the date of the
enactment of this Act [Nov. 30, 1983].''
Effective Date of 1981 Amendment
Amendment by Pub. L. 97-35 effective Oct. 1, 1981, see section 371
of Pub. L. 97-35, set out as an Effective Date note under section 3701
of this title.
Effective Date of 1954 Amendment
Amendment by section 112(b) of act Aug. 2, 1954, as not applicable
in any case where the mortgage involved was insured or the commitment
for the insurance was issued prior to Aug. 2, 1954, see section 112(e)
of that act, set out as a note under section 1710 of this title.
Repeals
The directory language of, but not the amendment made by, Pub. L.
90-301, Sec. 3(b), May 7, 1968, 82 Stat. 114, cited as a credit to this
section, was repealed by Pub. L. 98-181, title IV, Sec. 404(a), Nov. 30,
1983, 97 Stat. 1208.
Regulations
Section 509(h) of Pub. L. 102-550 provided that: ``The Secretary of
Housing and Urban Development shall issue regulations necessary to carry
out the amendments made by subsections (a) through (g) [amending this
section and sections 1715e, 1715k, 1715l, 1715v, and 1715y of this
title], which shall take effect not later than the expiration of the 1-
year period beginning on the date of the enactment of this Act [Oct. 28,
1992].''
Termination of Trust Territory of the Pacific Islands
For termination of Trust Territory of the Pacific Islands, see note
set out preceding section 1681 of Title 48, Territories and Insular
Possessions.
Delegation of Processing of Mortgage Insurance
Pub. L. 101-625, title III, Sec. 328, Nov. 28, 1990, 104 Stat. 4138,
as amended by Pub. L. 102-242, title II, Sec. 226, Dec. 19, 1991, 105
Stat. 2307, provided that:
``(a) Authority.--Not later than the expiration of the 60-day period
beginning on the date of enactment this Act [Nov. 28, 1990], the
Secretary of Housing and Urban Development shall implement a system of
mortgage insurance for mortgages insured under section 207, 221, 223,
232, or 241 of the National Housing Act [12 U.S.C. 1713, 1715l, 1715n,
1715w, 1715z-6] that delegates processing functions to selected approved
mortgagees or other individuals and entities expressly approved by the
Department of Housing and Urban Development. Under such system, the
Secretary shall retain the authority to approve rents, expenses,
property appraisals, and mortgage amounts and to execute a firm
commitment.
``(b) Full Insurance Program.--Notwithstanding subsection (a), the
Secretary shall maintain a viable system for full insurance programs
under such Act [this chapter] under which all processing functions are
performed by officers and employees of the Department of Housing and
Urban Development.''
Limitation on Number of Dwelling Units With Mortgages Not Providing for
Complete Amortization
Section 446(f) of Pub. L. 98-181 provided that: ``The aggregate
number of dwelling units included in properties covered by mortgages
insured pursuant to the authority granted in the amendments made by this
section [amending sections 1713, 1715k, 1715l, and 1715v of this title]
in any fiscal year may not exceed 10,000.''
Amendments to Provisions for Family Unit Limits on Rental Housing;
Equitable Application of Such Amendments or Pre-Amendment Provisions to
Projects Submitted for Consideration Prior to September 2, 1964
Section 107(g) of Pub. L. 88-560, as amended by Pub. L. 90-19,
Sec. 21(a), May 25, 1967, 81 Stat. 25, provided that if the Secretary of
Housing and Urban Development determined that it would be inequitable to
apply the provisions of the National Housing Act as amended by section
107 [amending sections 1713, 1715e, 1715k, 1715l, 1715v, and 1748h-2 of
this title] to a project which had been submitted for his consideration
prior to Sept. 2, 1964, such provisions could be applied to such project
without regard to the amendments made by section 107.
Section Referred to in Other Sections
This section is referred to in sections 24, 1464, 1710, 1712a,
1715c, 1715e, 1715k, 1715l, 1715r, 1715v, 1715w, 1715x, 1715y, 1715z-3,
1715z-6, 1715z-7, 1715z-18, 1717, 1731b, 1735, 1743, 1744, 1748b, 1748h-
2, 1749aaa-2, 1750g of this title; title 42 sections 1490p-2, 1594a,
3535.
