§ 1715d. — Insurance of mortgages on property in Alaska, Guam, Hawaii, and Virgin Islands.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1715d]
TITLE 12--BANKS AND BANKING
CHAPTER 13--NATIONAL HOUSING
SUBCHAPTER II--MORTGAGE INSURANCE
Sec. 1715d. Insurance of mortgages on property in Alaska, Guam,
Hawaii, and Virgin Islands
If the Secretary of Housing and Urban Development finds that,
because of higher costs prevailing in Alaska, Guam, Hawaii, or the
Virgin Islands, it is not feasible to construct dwellings or
manufactured home courts or parks on property located in Alaska, Guam,
Hawaii, or the Virgin Islands without sacrifice of sound standards of
construction, design, or livability, within the limitations as to
maximum or maxima mortgage amounts provided in this chapter, the
Secretary may, by regulations or otherwise, prescribe, with respect to
dollar amount, a higher maximum or maxima for the principal obligation
of mortgages insured under this chapter covering property located in
Alaska, Guam, Hawaii, or the Virgin Islands in such amounts as he shall
find necessary to compensate for such higher costs but not to exceed, in
any event, the maximum or maxima otherwise applicable (including
increased mortgage amounts in geographical areas where cost levels so
require) by more than one-half thereof. No mortgage with respect to a
project or property in Alaska, Guam, Hawaii, or the Virgin Islands shall
be accepted for insurance under this chapter unless the Secretary finds
that the project or property is an acceptable risk giving consideration
to the acute housing shortage in Alaska, Guam, Hawaii, or the Virgin
Islands: Provided, That any such mortgage may be insured or accepted for
insurance without regard to any requirement in any other section of this
chapter that the Secretary find the project or property to be
economically sound or an acceptable risk. Notwithstanding any of the
provisions of this chapter or any other law, the Alaska Housing
Authority or the Government of Guam, the Virgin Islands, or Hawaii or
any agency or instrumentality thereof shall be eligible as mortgagor or
mortgagee, as the case may be, for any of the purposes of mortgage
insurance under the provisions of this chapter. Upon application by the
mortgagee (1) where the mortgagor is regulated or restricted pursuant to
the last sentence of this section or (2) where the Alaska Housing
Authority or the Government of Guam, the Virgin Islands, or Hawaii or
any agency or instrumentality thereof is the mortgagor or mortgagee, for
the insurance of a mortgage under any provisions of this chapter, the
Secretary is authorized to insure the mortgage (including advances
thereon where otherwise authorized), and to make commitments for the
insuring of any such mortgages prior to the date of their execution or
disbursement thereon, under such provision (and this section) without
regard to any requirement that the mortgagor shall have paid a
prescribed amount on account of such property. Without limiting the
authority of the Secretary under any other provision of law, the
Secretary is authorized, with respect to any mortgagor in such case
(except where the Alaska Housing Authority is the mortgagor or
mortgagee), to require the mortgagor to be regulated or restricted as to
rents or sales, charges, capital structure, rate of return, and methods
or operation to such an extent and in such manner as the Secretary
determines advisable to provide reasonable rentals and sales prices and
a reasonable return on the investment.
(June 27, 1934, ch. 847, title II, Sec. 214, as added Apr. 23, 1949, ch.
89, Sec. 2(a), 63 Stat. 57; amended Sept. 1, 1951, ch. 378, title VI,
Sec. 606, 65 Stat. 315; July 14, 1952, ch. 723, Sec. 10(a)(3), 66 Stat.
603; June 30, 1953, ch. 170, Sec. 25(a), (c), 67 Stat. 128; Pub. L. 86-
70, Sec. 10(c), June 25, 1959, 73 Stat. 142; Pub. L. 86-372, title I,
Sec. 106, Sept. 23, 1959, 73 Stat. 657; Pub. L. 90-19, Sec. 1(a)(2),
(3), May 25, 1967, 81 Stat. 17; Pub. L. 91-152, title IV, Sec. 418(e),
Dec. 24, 1969, 83 Stat. 402; Pub. L. 96-399, title III, Sec. 308(c)(1),
Oct. 8, 1980, 94 Stat. 1640; Pub. L. 98-479, title II, Sec. 204(a)(4),
Oct. 17, 1984, 98 Stat. 2232; Pub. L. 100-242, title IV, Sec. 406(b)(7),
Feb. 5, 1988, 101 Stat. 1901; Pub. L. 101-625, title III, Sec. 333, Nov.
28, 1990, 104 Stat. 4141.)
Codification
Section is comprised of section 214 of act June 27, 1934, as added
by section 2(a) of act Apr. 23, 1949, which insofar as Alaska, Hawaii,
and Guam individually are concerned, was, formerly, also set out as
sections 484d, 723, and 1425 of Title 48, Territories and Insular
Possessions. Section 2(b) of act Apr. 23, 1949, which was formerly
classified to sections 484e, 724 and 1426 of Title 48, was repealed by
act Aug. 2, 1954, ch. 649, title II, Sec. 205, 68 Stat. 622.
Amendments
1990--Pub. L. 101-625 amended section catchline generally, inserting
reference to Virgin Islands, substituted ``Alaska, Guam, Hawaii, or the
Virgin Islands,'' for ``Alaska, Guam, or Hawaii,'' after ``costs
prevailing in'', ``Alaska, Guam, Hawaii, or the Virgin Islands'' for
``Alaska or in Guam or Hawaii'' wherever appearing, and inserted ``, the
Virgin Islands,'' after ``Government of Guam'' wherever appearing.
1988--Pub. L. 100-242 struck out ``shall be the owner and occupant
of the property or'' before ``shall have paid a prescribed amount'' in
fourth sentence.
1984--Pub. L. 98-479 substituted ``Insurance of mortgages on
property in Alaska, Guam, and Hawaii'' for ``Construction of dwellings
or mobile home courts or parks in Alaska, Guam, and Hawaii; increased
maximum for mortgage insurance; conditions and limitations'' in section
catchline, and substituted ``Notwithstanding'' for ``Nowithstanding'' at
beginning of third sentence.
1980--Pub. L. 96-399 substituted ``manufactured'' for ``mobile''.
1969--Pub. L. 91-152 extended to mobile home courts or parks the
special provisions applicable to properties located in Alaska, Guam, or
Hawaii.
1967--Pub. L. 90-19 substituted ``Secretary of Housing and Urban
Development'' for ``Federal Housing Commissioner'' and ``Secretary'' for
``Commissioner'', respectively, wherever appearing.
1959--Pub. L. 86-372 inserted ``(including increased mortgage
amounts in geographical areas where cost levels so require)'' after
``maximum or maxima otherwise applicable''.
Pub. L. 86-70 substituted ``Alaska, Guam,'' for ``the Territory of
Alaska or in Guam''.
1953--Act June 30, 1953, Sec. 25(a), inserted ``or Hawaii'' after
``Guam'' wherever appearing.
Act June 30, 1953, Sec. 25(c), substituted in fourth sentence ``Upon
application by the mortgagee (1) where the mortgagor is regulated or
restricted pursuant to the last sentence of this section or (2)'' for
``Upon application by the mortgagee,''; and inserted sentence beginning
``Without limiting the authority''.
1952--Act July 14, 1952, inserted ``or in Guam'' after ``Alaska''
wherever appearing, inserted ``or maxima'' after ``maximum,'' and
inserted ``or the Government of Guam or any agency or instrumentality
thereof'' after ``Alaska Housing Authority'' wherever appearing.
1951--Act Sept. 1, 1951, substituted ``one-half'' for ``one-third''
in first sentence.
Effective Date of 1988 Amendment
Amendment by Pub. L. 100-242 applicable only with respect to
mortgages insured pursuant to conditional commitment issued on or after
Feb. 5, 1988, or in accordance with direct endorsement program (24 CFR
200.163), if approved underwriter of mortgagee signs appraisal report
for property on or after Feb. 5, 1988, see section 406(d) of Pub. L.
100-242, set out as a note under section 1709 of this title.
Study and Report Respecting Utilization of Factory-Built and Other
Appropriate Types of Housing for Indian, Etc., Housing Programs
Section 323 of Pub. L. 96-399 directed Secretary of Housing and
Urban Development to study feasibility of utilizing factory-built and
other appropriate types of housing (other than the traditional type of
site-built housing), to the extent practicable, in carrying out housing
programs for Indians and Alaskan Natives, and not later than eighteen
months after Oct. 8, 1980, to transmit a report to Congress containing
the findings and conclusions of such study, including a comparison of
costs and benefits of utilizing the traditional type of site-built
housing and of utilizing other types of housing in situations in which
either type of housing could be used.
Termination of Purchases of Obligations
No additional notes or obligations to be purchased after June 24,
1954, from funds appropriated pursuant to the Alaska Housing Act, as
amended, which is classified, in part, to this section, see section
1701g-5 of this title, and References in Text note thereunder.
Revolving Fund
Establishment of revolving fund under which to account for assets
and liabilities in connection with notes and other obligations purchased
pursuant to the Alaska Housing Act, as amended, which is classified, in
part, to this section, see section 1701g-5 of this title, and References
in Text note thereunder.
Admission of Alaska and Hawaii to Statehood
Alaska was admitted into the Union on Jan. 3, 1959, on issuance of
Proc. No. 3269, Jan. 3, 1959, 24 F.R. 81, 73 Stat. c16, and Hawaii was
admitted into the Union on Aug. 21, 1959, on issuance of Proc. No. 3309,
Aug. 21, 1959, 24 F.R. 6868. 73 Stat. c74. For Alaska Statehood Law, see
Pub. L. 85-508, July 7, 1958, 72 Stat. 339, set out as a note preceding
section 21 of Title 48, Territories and Insular Possessions. For Hawaii
Statehood Law, see Pub. L. 86-3, Mar. 18, 1959, 73 Stat. 4, set out as a
note preceding section 491 of Title 48.
Section Referred to in Other Sections
This section is referred to in sections 1709, 1748e of this title.
