§ 1715y. — Mortgage insurance for condominiums.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1715y]
TITLE 12--BANKS AND BANKING
CHAPTER 13--NATIONAL HOUSING
SUBCHAPTER II--MORTGAGE INSURANCE
Sec. 1715y. Mortgage insurance for condominiums
(a) Purpose
The purpose of this section is to provide an additional means of
increasing the supply of privately owned dwelling units where, under the
laws of the State in which the property is located, real property title
and ownership are established with respect to a one-family unit which is
part of a multifamily project.
(b) Definitions
The terms ``mortgage'', ``mortgagee'', ``mortgagor'', ``maturity
date'', and ``State'' shall have the meanings respectively set forth in
section 1707 of this title, except that the term ``mortgage'' for the
purposes of subsection (c) this section may include a first mortgage
given to secure the unpaid purchase price of a fee interest in, or a
long-term leasehold interest in, a one-family unit in a multifamily
project, including a project in which the dwelling units are attached,
semi-attached, or detached, and an undivided interest in the common
areas and facilities which serve the project where the mortgage is
determined by the Secretary to be eligible for insurance under this
section. The term ``common areas and facilities'' as used in this
section shall be deemed to include the land and such commercial,
community, and other facilities as are approved by the Secretary.
(c) Authorization; eligibility for insurance; conditions; limits
The Secretary is authorized, in his discretion and under such terms
and conditions as he may prescribe (including the minimum number of
family units in the project which shall be offered for sale and
provisions for the protection of the consumer and the public interest),
to insure any mortgage covering a one-family unit in a multifamily
project and an undivided interest in the common areas and facilities
which serve the project, if (1) the mortgage meets the requirements of
this subsection and of section 1709(b) of this title, except as that
section is modified by this subsection, and (2) at least 80 percent of
the units in the project covered by mortgages insured under this
subchapter are occupied by the mortgagors or comortgagors. Any project
proposed to be constructed or rehabilitated after June 30, 1961, with
the assistance of mortgage insurance under this chapter, where the sale
of family units is to be assisted with mortgage insurance under this
subsection, shall be subject to such requirements as the Secretary may
prescribe. To be eligible for insurance pursuant to this subsection, a
mortgage shall (A) involve a principal obligation in an amount not to
exceed the maximum principal obligation of a mortgage which may be
insured in the area pursuant to section 1709(b)(2) of this title or
pursuant to section 1709(h) of this title under the conditions described
in section 1709(h) of this title, and (B) have a maturity satisfactory
to the Secretary, but not to exceed, in any event, thirty-five years
from the date of the beginning of amortization of the mortgage. The
mortgage shall contain such provisions as the Secretary determines to be
necessary for the maintenance of common areas and facilities and the
multifamily project. The mortgagor shall have exclusive right to the use
of the one-family unit covered by the mortgage and, together with the
owners of other units in the multifamily project, shall have the right
to the use of the common areas and facilities serving the project and
the obligation of maintaining all such common areas and facilities. The
Secretary may require that the rights and obligations of the mortgagor
and the owners of other dwelling units in the project shall be subject
to such controls as he determines to be necessary and feasible to
promote and protect individual owners, the multifamily project, and its
occupants. For the purposes of this subsection, the Secretary is
authorized in his discretion and under such terms and conditions as he
may prescribe to permit one-family units and interests in common areas
and facilities in multifamily projects covered by mortgages insured
under any section of this chapter (other than section 1715e(a)(1) and
(2) of this title) to be released from the liens of those mortgages.
(d) Blanket mortgages of multifamily projects; plan of family unit
ownership; regulations; stock purchase and redemption
In addition to individual mortgages insured under subsection (c) of
this section, the Secretary is authorized, in his discretion and under
such terms and conditions as he may prescribe, to insure blanket
mortgages (including advances on such mortgages during construction)
which cover multifamily projects to be constructed or rehabilitated in
cases where the mortgage is held by a mortgagor, approved by the
Secretary, which--
(1) has certified to the Secretary, as a condition of obtaining
the insurance of a blanket mortgage under this subsection, that upon
completion of the multifamily project covered by such mortgage it
intends to commit the ownership of the multifamily project to a plan
of family unit ownership under which each family unit would be
eligible for individual mortgage insurance under subsection (c) of
this section and will faithfully and diligently make and carry out
all reasonable efforts to establish such plan of family unit
ownership and to sell such family units to purchasers approved by
the Secretary; and
(2) may, in the Secretary's discretion, be regulated or
restricted as to rents, charges, capital structure, rate of return,
and methods of operation 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 such mortgagor as he
may deem necessary to render effective any such regulation or
restriction of such mortgagor. 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 at any time upon the
request of the Secretary after the termination of all obligations of
the Secretary under the insurance.
(e) Eligibility for insurance of blanket mortgages of multifamily
projects
To be eligible for insurance, a blanket mortgage on any multifamily
project of a mortgagor of the character described in subsection (d) of
this section shall involve a principal obligation in an amount--
(1) Repealed. Pub. L. 93-383, title III, Sec. 304(h), Aug. 22,
1974, 88 Stat. 678;
(2) not to exceed 90 per centum of the amount which the
Secretary estimates will be the replacement cost of the project when
the proposed physical improvements are completed;
(3)(A) not to exceed, for such part of the project as may be
attributable to dwelling use (excluding exterior land improvements
as defined by the Secretary), $42,048 per family unit without a
bedroom, $48,481 per family unit with one bedroom, $58,469 per
family unit with two bedrooms, $74,840 per family unit with three
bedrooms, and $83,375 per family unit with four or more bedrooms;
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 $44,250 per family unit
without a bedroom, $50,724 per family unit with one bedroom, $61,680
per family unit with two bedrooms, $79,793 per family unit with
three bedrooms, and $87,588 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 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;
and
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\1\ See References in Text note below.
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(4) not to exceed an amount equal to the sum of the unit
mortgage amounts determined under the provisions of subsection (c)
of this section assuming the mortgagor to be the owner and occupant
of each family unit.
(f) Amortization of blanket mortgages of multifamily projects; interest;
releases; extent of project
Any blanket mortgage insured under subsection (d) of this section
shall provide for complete amortization by periodic payments within such
terms as the Secretary may prescribe but not to exceed 40 years from the
beginning of amortization of the mortgage, 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 blanket mortgage upon such terms and
conditions as he may prescribe and the blanket mortgage may provide for
such release. The project covered by the blanket mortgage may include
four or more family units and such commercial and community facilities
as the Secretary deems adequate to serve the occupants.
(g) Entitlement to insurance benefits as provided in section 1710(a) of
this title
Any mortgagee under a mortgage insured under subsection (c) of this
section is entitled to receive the benefits of the insurance as provided
in section 1710(a) of this title with respect to mortgages insured under
section 1709 of this title, and the provisions of subsections (b), (c),
(d), (e), (f), (g), (h),\1\ (j), and (k) \1\ of section 1710 of this
title shall be applicable to the mortgages insured under subsection (c)
of this section, except that (1) all references in section 1710 of this
title to the Mutual Mortgage Insurance Fund or the Fund shall be
construed to refer to the General Insurance Fund, (2) all references
therein to section 1709 of this title shall be construed to refer to
subsection (c) of this section, and (3) the excess remaining, referred
to in section 1710(f)(1) of this title, shall be retained by the
Secretary and credited to the General Insurance Fund.
(h) Applicability of other provisions
The provisions of subsections (d), (e), (g), (h), (i), (j), (k),
(l), and (n) of section 1713 of this title shall be applicable to
mortgages insured under subsection (d) of this section.
(i) Applicability of other provisions
The provisions of sections 1715p and 1715u of this title shall be
applicable to the mortgages insured under subsection (c) of this
section.
(j) Increase in maximum insurance amounts for costs incurred from solar
energy systems and energy conservation measures
The Secretary may further increase the dollar amount limitations
which would otherwise apply under subsection (e) of this section by not
to exceed 20 per centum if such increase is necessary to account for the
increased cost of a 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.
(k) Rental housing conversion
With respect to a unit in any project which was converted from
rental housing, no insurance may be provided under this section unless
(1) the conversion occurred more than one year prior to the application
for insurance, (2) the mortgagor or comortgagor was a tenant of that
rental housing, (3) the conversion of the property is sponsored by a
bona fide tenants organization representing a majority of the households
in the project, or (4) before April 20, 1984 (A) application was made to
the Secretary for a commitment to insure a mortgage covering any unit in
the project, (B) in the case of direct endorsement, the mortgagee
received the case number assigned by the Secretary for any unit in the
project, or (C) application was made for approval of the project for
guarantee, insurance, or direct loan under chapter 37 of title 38.
(June 27, 1934, ch. 847, title II, Sec. 234, as added Pub. L. 87-70,
title I, Sec. 104, June 30, 1961, 75 Stat. 160; amended Pub. L. 88-560,
title I, Sec. 119(a), Sept. 2, 1964, 78 Stat. 780; Pub. L. 89-117, title
II, Sec. 207(f), title XI, Sec. 1108(o), Aug. 10, 1965, 79 Stat. 468,
506; Pub. L. 90-19, Sec. 1(a)(3), (4), May 25, 1967, 81 Stat. 17; Pub.
L. 90-301, Sec. 3(e), May 7, 1968, 82 Stat. 114; Pub. L. 90-448, title
III, Sec. 303, Aug. 1, 1968, 82 Stat. 507; Pub. L. 91-152, title I,
Secs. 102(d), 113(h), Dec. 24, 1969, 83 Stat. 380, 384; Pub. L. 93-383,
title III, Secs. 302(e), 303(g), 304(h), 310(d), Aug. 22, 1974, 88 Stat.
676-678, 683; Pub. L. 94-173, Sec. 3, Dec. 23, 1975, 89 Stat. 1027; Pub.
L. 94-375, Sec. 8(a), (b)(7), Aug. 3, 1976, 90 Stat. 1071, 1072; Pub. L.
95-128, title III, Secs. 303(e), 304(d), Oct. 12, 1977, 91 Stat. 1132,
1133; Pub. L. 95-557, title III, Sec. 313, Oct. 31, 1978, 92 Stat. 2099;
Pub. L. 96-153, title III, Secs. 312(c), 314, Dec. 21, 1979, 93 Stat.
1116, 1117; Pub. L. 96-399, title III, Secs. 310(g), 318, 333(e),
336(d), Oct. 8, 1980, 94 Stat. 1643, 1646, 1653, 1654; Pub. L. 97-35,
title III, Secs. 339(a), 339B(a), (d), Aug. 13, 1981, 95 Stat. 416, 417;
Pub. L. 97-253, title II, Sec. 201(e), Sept. 8, 1982, 96 Stat. 789; Pub.
L. 97-377, title I, Sec. 101(g), Dec. 21, 1982, 96 Stat. 1908; Pub. L.
98-181, title IV, Secs. 404(b)(11), 420, 423(b)(4), 431(b), Nov. 30,
1983, 97 Stat. 1209, 1213, 1217, 1220; Pub. L. 98-479, title I,
Sec. 104(a)(2), Oct. 17, 1984, 98 Stat. 2224; Pub. L. 100-242, title IV,
Secs. 406(b)(17), 422(a), 426(g), (h), Feb. 5, 1988, 101 Stat. 1901,
1914, 1916; Pub. L. 102-550, title V, Sec. 509(g), Oct. 28, 1992, 106
Stat. 3783; Pub. L. 103-211, title I, Feb. 12, 1994, 108 Stat. 12; Pub.
L. 103-233, title III, Sec. 306, Apr. 11, 1994, 108 Stat. 373; Pub. L.
105-18, title II, Sec. 10005, June 12, 1997, 111 Stat. 201; Pub. L. 107-
73, title II, Sec. 213(g), Nov. 26, 2001, 115 Stat. 677; Pub. L. 107-
326, Sec. 5(b)(7), Dec. 4, 2002, 116 Stat. 2796.)
References in Text
The General Insurance Fund, referred to in text, was established by
section 1735c of this title.
Section 1720 of this title, referred to in subsec. (e)(3)(B), was
repealed by Pub. L. 98-181, title IV, Sec. 483(a), Nov. 30, 1983, 97
Stat. 1240.
Subsection (h) of section 1710 of this title, referred to in subsec.
(g), was redesignated subsec. (i) by Pub. L. 105-276, title VI,
Sec. 602(1), Oct. 21, 1998, 112 Stat. 2674.
Subsection (k) of section 1710 of this title, referred to in subsec.
(g), was repealed by Pub. L. 105-276, title VI, Sec. 601(c), Oct. 21,
1998, 112 Stat. 2673.
Section 8211 of title 42, referred to in subsec. (j), 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.
Amendments
2002--Subsec. (e)(3). Pub. L. 107-326 inserted ``(A)'' after ``(3)''
and substituted ``$42,048'' for ``$38,025'', ``$48,481'' for
``$42,120'', ``$58,469'' for ``$50,310'', ``$74,840'' for `$62,010'',
``$83,375'' for ``$70,200'', ``$44,250'' for ``$43,875'', ``$50,724''
for ``$49,140'', ``$61,680'' for ``$60,255'', ``$79,793'' for
``$75,465'', ``$87,588'' for ``$85,328'', and ``; (B) the Secretary may,
by regulation, increase any of the dollar limitations in subparagraph
(A) (as such limitations may have been adjusted in accordance with
section 1712a of this title)'' for ``; except that each of the foregoing
dollar amounts is increased to the amount established for a comparable
unit in section 1715l(d)(3)(ii) of this title; and except that the
Secretary may, by regulation, increase any of the foregoing dollar
amount limitations contained in this paragraph''.
2001--Subsec. (e)(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,
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.
1997--Subsec. (c). Pub. L. 105-18 inserted ``or pursuant to section
1709(h) of this title under the conditions described in section 1709(h)
of this title'' after ``section 1709(b)(2) of this title''.
1994--Subsec. (c). Pub. L. 103-211, effective for 18-month period
following Feb. 12, 1994, for eligible persons, inserted ``or pursuant to
section 1709(h) of this title under the conditions described in section
1709(h) of this title'' after ``section 1709(b)(2) of this title''. See
Applicability of 1994 Amendment note below.
Subsec. (e)(3). Pub. L. 103-233 substituted ``$56,160'' for
``$59,160''.
1992--Subsec. (e)(3). Pub. L. 102-550 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.
1988--Subsec. (c). Pub. L. 100-242, Sec. 406(b)(17), struck out
fourth sentence which read as follows: ``In determining the amount of a
mortgage in the case of a nonoccupant mortgagor the reference to
paragraph (2) of section 1709(b) of this title in section 1709(b)(8) of
this title shall be construed to refer to the preceding sentence in this
subsection.''
Subsec. (e)(3). Pub. L. 100-242, Sec. 426(g), 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.
Pub. L. 100-242, Sec. 422(a), inserted ``except that each of the
foregoing dollar amounts is increased to the amount established for a
comparable unit in section 1715l(d)(3)(ii) of this title;'' after
``design;''.
Pub. L. 100-242, Sec. 426(h), 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''.
1984--Subsec. (k)(4). Pub. L. 98-479 added cl. (4).
1983--Subsec. (c). Pub. L. 98-181, Sec. 423(b)(4), purported to
amend cl. (A) of third sentence of subsec. (c) by striking out ``:
Provided, That the foregoing maximum mortgage amounts may be increased
by the amount of the mortgage insurance premium paid at the time the
mortgage is insured'', but this provision had been previously struck out
by section 420(b) of Pub. L. 98-181. See second par. below and Effective
Date of 1983 Amendment note below.
Pub. L. 98-181, Sec. 420(a), in cl. (2) substituted provision that
at least 80 percent of the units in the project covered by mortgages
insured under this subchapter be occupied by mortgagors or comortgagors
for provision that the project be covered by a mortgage insured under
any section of this chapter, except section 1715e(a)(1) and (2) of this
title, notwithstanding any requirements in such section that the project
be constructed or rehabilitated for providing rental housing and
providing that a one-family unit in a multifamily project involving
eleven or less units, or twelve or more in the case of a multifamily
project the construction of which was completed more than a year prior
to application for mortgage insurance, be eligible for insurance without
having been covered by a project mortgage, and struck out cl. (3), which
provided that the mortgagor is acquiring, or has acquired, a family unit
covered by a mortgage insured under this subsection for his own use and
occupancy and will not own more than four one-family units covered by
mortgages insured under this subsection.
Pub. L. 98-181, Sec. 420(b), substituted in third sentence ``(A)
involve a principal obligation in an amount not to exceed the maximum
principal obligation of a mortgage which may be insured in the area
pursuant to section 1709(b)(2) of this title'' for ``(A) involve a
principal obligation in an amount not to exceed $67,500, except that the
Secretary may increase such maximum dollar amount on an area-by-area
basis to the extent the Secretary deems necessary, after taking into
consideration the extent to which moderate and middle income persons
have limited housing opportunities in the area due to high prevailing
housing sales prices, but in no case may such limit, as so increased,
exceed the lesser of 111 per centum of such amount or 95 per centum of
the median one-family house price in the area, as determined by the
Secretary: Provided, That the foregoing maximum mortgage amounts may be
increased by the amount of the mortgage insurance premium paid at the
time the mortgage is insured; and not to exceed the sum of (i) 97 per
centum (100 per centum if the mortgagor is a veteran as defined under
section 1709(b)(2) of this title) of $25,000 of the appraised value of
the property as of the date the mortgage is accepted for insurance and
(ii) 95 per centum of such value in excess of $25,000''.
Subsec. (d)(2). Pub. L. 98-181, Sec. 431(b), substituted ``may, in
the Secretary's discretion, be regulated or restricted'' for ``shall be
regulated or restricted by the Secretary'', and substituted ``any such
regulation or restriction'' for ``the regulation and restriction''.
Subsec. (f). Pub. L. 98-181, Sec. 404(b)(11), substituted 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.
Subsec. (k). Pub. L. 98-181, Sec. 420(c), added subsec. (k).
1982--Subsec. (c)(A). Pub. L. 97-253 inserted provision that the
foregoing maximum mortgage amounts may be increased by the amount of the
mortgage insurance premium paid at the time the mortgage is insured.
Subsec. (e)(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. (b). Pub. L. 97-35, Sec. 339(a), inserted reference to
projects in which the dwelling units are attached, semi-attached, or
detached.
Subsec. (c)(2). Pub. L. 97-35, Sec. 339B(d)(1), reenacted provisions
relating to covered projects in material preceding proviso in cl. (2).
Section 339B(d)(2) of Pub. L. 97-35 repealed section 318 of the Housing
and Community Development Act of 1980, which previously enacted these
provisions. See Repeals note set out below.
Subsec. (j). Pub. L. 97-35, Sec. 339B(a), inserted ``therein'' after
``installation'' and struck out ``therein'' after ``measure''.
1980--Subsec. (c). Pub. L. 96-399, Secs. 318, 333(e), 336(d),
inserted provisions relating to projects approved under chapter 37 of
title 38, and provisions relating to increases in the maximum dollar
amounts on an area-by-area basis, and struck out applicability to
determinations of three-quarters of the Secretary's estimate of the
remaining economic life of the building improvements, if so determined
as the lesser amount in the computations.
Subsec. (j). Pub. L. 96-399, Sec. 310(g), added subsec. (j).
1979--Subsec. (c). Pub. L. 96-153, Sec. 312(c), substituted
``$67,500'' for ``$60,000''.
Subsec. (e)(3). Pub. L. 96-153, Sec. 314, substituted ``75 per
centum'' for ``50 per centum'' and inserted exception that the dollar
amount limitations may be exceeded not to exceed 90 per centum where the
Secretary determines it to be necessary.
1978--Subsec. (c). Pub. L. 95-557 inserted ``or twelve or more units
in the case of a multifamily project the construction of which was
completed more than a year prior to the application for mortgage
insurance'' after ``less units'' in cl. (2) and ``(100 per centum if the
mortgagor is a veteran as defined under section 1709(b)(2) of this
title)'' after ``97 per centum'' in cl. (A)(i).
1977--Subsec. (c). Pub. L. 95-128 substituted in cl. (A) ``$60,000''
for ``$45,000'' and ``and (ii) 95 per centum of such value in excess of
$25,000,'' for ``(ii) 90 per centum of such value in excess of $25,000
but not in excess of $35,000, (iii) 80 per centum of such value in
excess of $35,000''.
1976--Subsec. (e) (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'', ``$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. (e)(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). Pub. L. 93-383, Secs. 302(e), 310(d), substituted
``$45,000'' for ``$33,000'' in cl. (A), ``$25,000'' for ``$15,000'' in
cl. (A)(i), ``$25,000'' for ``$15,000'' and ``$35,000'' for ``$25,000''
in cl. (A)(ii), and ``$35,000'' for ``$25,000'' and ``80'' for ``75'' in
cl. (A)(iii).
Subsec. (e)(1). Pub. L. 93-383, Sec. 304(h), struck out par. (1)
which set forth limitations on principal obligations of mortgages.
Subsec. (e)(3). Pub. L. 93-383, Sec. 303(g), substituted ``$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 ``$25,750'', and ``$36,465'' for
``$28,050''.
1969--Subsec. (c). Pub. L. 91-152, Secs. 102(d), 113(h)(1),
substituted ``$25,000'' for ``$20,000'' wherever appearing, and
``$33,000'' for ``$30,000''.
Subsec. (e)(3). Pub. L. 91-152, Sec. 113(h)(2), (3), substituted
``$9,900'' for ``$9,000'', ``$11,550'' for ``$10,500'', ``$13,750'' for
``$12,500'', ``$16,500'' for ``$15,000'' wherever appearing, ``$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). Pub. L. 90-448, Sec. 303(a), (b), made one-family
units in multifamily projects involving eleven or less units eligible
for insurance without having been covered by a project mortgage, and
increased the maximum mortgage limits from 75 to 80 per centum of the
appraised value of the property in excess of $20,000.
Subsec. (f). Pub. L. 90-448, Sec. 303(c), permitted blanket
mortgages to cover four or more family units instead of five or more
family units.
Pub. L. 90-301 limited the 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, Sec. 1(a)(3), substituted ``Secretary'' for
``Commissioner'' wherever appearing in subsecs. (b) to (d), (d)(1), (2),
(e)(2), (3), (f), and (g).
Subsec. (c). Pub. L. 90-19, Sec. 1(a)(4), substituted
``Secretary's'' for ``Commissioner's''.
1965--Subsec. (d)(2). Pub. L. 89-117, Sec. 1108(o)(1), substituted
``General Insurance Fund'' for ``Apartment Unit Insurance Fund''.
Subsec. (e)(3). Pub. L. 89-117, Sec. 207(f), 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
$25,500 per family unit with four or more bedrooms'' for ``and $22,500
per family unit with three or more bedrooms''.
Subsec. (g). Pub. L. 89-117, Sec. 1108(o)(1), (2), substituted
``General Insurance Fund'' for ``Apartment Unit Insurance Fund''.
Subsec. (h). Pub. L. 89-117, Sec. 1108(o)(2), struck out reference
to subsec. (m) and (p) of section 1713 of this title and provision that
references therein to the Housing Insurance Fund or Housing Fund shall
be construed to refer to the Apartment Unit Insurance Fund.
Subsecs. (i), (j). Pub. L. 89-117, Sec. 1108(o)(3), redesignated
subsec. (j) as (i) and repealed former subsec. (i), which created the
Apartment Unit Insurance Fund, authorized transfer of funds thereto, and
provided for the charging of expenses thereto.
1964--Pub. L. 88-560, Sec. 119(a)(1), substituted ``Mortgage
insurance for condominiums'' for ``Mortgage insurance for individually
owned units in multifamily structures'' in section catchline.
Subsec. (a). Pub. L. 88-560, Sec. 119(a)(2), substituted ``project''
for ``structure''.
Subsec. (b). Pub. L. 88-560, Sec. 119(a)(2), (3), substituted
``project'' for ``structure'' in two places and ``the term `mortgage'
for the purposes of subsection (c) of this section'' for ``the term
`mortgage' for the purposes of this section'', respectively.
Subsec. (c). Pub. L. 88-560, Sec. 119(a)(2), (4) to (6), amended
provisions as follows.
Section 119(a)(2) substituted ``project'' for ``structure'',
wherever appearing, and ``projects'' for ``structures'' in last
sentence;
Section 119(a)(4) substituted ``this subsection'' for ``this
section'', wherever appearing, and ``under any section'' for ``under
another section'' in first sentence;
Section 119(a)(5) substituted ``section 1715e(a)(1) and (2)'' for
``section 1715e'', in two places; and
Section 119(a)(6) substituted in third sentence: in cl. (A),
``amount not to exceed $30,000'' for ``amount not to exceed the limits
per room and per family dwelling unit provided by section 1713(c)(3) of
this title''; in cl. (A)(i), ``$15,000'' for ``$13,500''; in cl.
(A)(ii), ``$15,000'' and ``$20,000'' for ``$13,500'' and ``$18,000'',
respectively; in cl. (A)(iii), ``75 per centum'' and ``$20,000'' for
``70 per centum'' and ``$18,000'', respectively; and in cl. (B),
``thirty-five'' for ``thirty'' years.
Subsecs. (d) to (f). Pub. L. 88-560, Sec. 119(a)(7), added subsecs.
(d) to (f). Former subsecs. (d) to (f) renumbered subsecs. (g), (i),
(j).
Subsec. (g). Pub. L. 88-560, Sec. 119(a)(7), (8), redesignated
former subsec. (d) as (g) and substituted ``subsection (c) of this
section'' for ``this section'' in three places, respectively.
Subsec. (h). Pub. L. 88-560, Sec. 119(a)(9), added subsec. (h).
Subsec. (i). Pub. L. 88-560, Sec. 119(a)(7), redesignated former
subsec. (e) as (i).
Subsec. (j). Pub. L. 88-560, Sec. 119(a)(7), (10), redesignated
former subsec. (f) as (j), struck out reference to section 1715t of this
title, and substituted ``subsection (c) of this section'' for ``this
section''.
Applicability of 1994 Amendment
Eligibility for loans made under authority granted by amendment by
Pub. L. 103-211 limited to persons whose principal residence was damaged
or destroyed as a result of the January 1994 earthquake in Southern
California, with such amendment effective only for 18-month period
following Feb. 12, 1994, see provision of title I of Pub. L. 103-211,
set out as a note under section 1709 of this title.
Effective Date of 1988 Amendment
Amendment by section 406(b)(17) of 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.
Effective Date of 1983 Amendment
Amendment by section 431(b) of Pub. L. 98-181 not to apply with
respect to mortgages insured by the Secretary of Housing and Urban
Development before Nov. 30, 1983, see section 431(c) of Pub. L. 98-181,
set out as a note under section 1713 of this title.
For effective date of amendment by section 423(b)(4) of Pub. L. 98-
181, see section 423(c) of Pub. L. 98-181, set out as a note under
section 1709 of this title.
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.
Repeals
The directory language of, but not the amendment made by, Pub. L.
90-301, Sec. 3(e), 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.
Section 318 of Pub. L. 96-399, cited as a credit to this section,
was repealed by Pub. L. 97-35, title III, Sec. 339B(d)(2), Aug. 13,
1981, 95 Stat. 417. See 1981 Amendments note for subsec. (c)(2) set out
above.
Implementation of 1982 Amendment
Amendment by Pub. L. 97-253 to be implemented only if Secretary
determines that program of advance payment of insurance premiums,
considering effect of said amendment, is actuarially sound, see section
201(g) of Pub. L. 97-253, set out as a note under section 1709 of this
title.
Section Referred to in Other Sections
This section is referred to in sections 1709, 1712a, 1715c, 1715q,
1715r, 1715z, 1715z-14, 1717 of this title; title 42 section 3535.
