§ 1748h-2. — Insurance of mortgages for defense housing for impacted areas.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1748h-2]
TITLE 12--BANKS AND BANKING
CHAPTER 13--NATIONAL HOUSING
SUBCHAPTER VIII--ARMED SERVICES HOUSING MORTGAGE INSURANCE
Sec. 1748h-2. Insurance of mortgages for defense housing for
impacted areas
(a) Authorization
Notwithstanding any other provision of this subchapter, the
Secretary may insure and make commitments to insure any mortgage under
this section which meets the eligibility requirements hereinafter set
forth.
(b) Eligibility requirements
No mortgage shall be insured under this section unless (1) the
housing which is covered by the insured mortgage is necessary in the
interest of national security in order to provide adequate housing for
(A) military personnel and essential civilian personnel serving or
employed in connection with any installation of one of the armed
services of the United States, or (B) essential personnel employed or
assigned to duty at or in connection with any research or development
installation of the National Aeronautics and Space Administration or of
the Atomic Energy Commission, (2) there is no present intention to
curtail substantially the number of such personnel assigned or to be
assigned to the installation, (3) adequate housing is not available for
such personnel at reasonable rentals within reasonable commuting
distances of such installation, and (4) the mortgaged property will not
so far as can be reasonably foreseen substantially curtail occupancy in
any existing housing in the vicinity of the installation which is
covered by mortgages insured under this chapter.
(c) Economical soundness of property or project
The Secretary may accept any mortgage for insurance under this
section without regard to any requirement in any other section of this
chapter that the property or project be economically sound.
(d) Rental conditions; preferences and priorities in the sale or rental
of dwellings
The Secretary shall require each project covered by a mortgage
insured under this section to be held for rental for a period of not
less than five years after the project or dwelling is made available for
initial occupancy or until he finds that the housing may be released
from such rental condition. The Secretary shall prescribe such
procedures as in his judgment are necessary to secure reasonable
preference or priority in the sale or rental of dwellings covered by a
mortgage insured under this section for military personnel and essential
civilian employees of the armed services, employees of contractors for
the armed services, and persons described in clause (1)(B) of subsection
(b) of this section.
(e) Property held by mortgagor approved by Secretary; acquisition of
stock or interest; redemption
For the purpose of providing multifamily rental housing projects or
housing projects consisting of individual single-family dwellings for
sale, the Secretary is authorized to insure mortgages (including
advances on such mortgages during construction) which cover property
held by a mortgagor approved by the Secretary. Any such mortgagor shall
possess powers necessary therefor and incidental thereto and shall until
the termination of all obligations of the Secretary under such insurance
be regulated or restricted as to rents or sales, charges, capital
structure, rate of return, and methods of operation to such extent and
in such manner as to provide reasonable rentals to tenants and a
reasonable return on the investment. The Secretary may make such
contracts with, and acquire for not to exceed $100 such stock or
interest in, any such mortgagor as he may deem necessary to render
effective such restriction or regulation. Such stock or interest 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.
(f) Mortgage limitations for multifamily rental property or project
To be eligible for insurance under this section, a mortgage on any
multifamily rental property or project shall involve a principal
obligation in an amount not to exceed, for such part of such property or
project as may be attributable to dwelling use, $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, and not to exceed 90 per centum of the estimated value of
the property or project when the proposed physical improvements are
completed. The Secretary may, by regulation, increase any of the
foregoing dollar amount limitations contained in this paragraph by not
to exceed 45 per centum in any geographical area where he finds that
cost levels so require.
(g) Mortgage limitation for property or project constructed for eventual
sale of single-family dwellings
To be eligible for insurance under this section a mortgage on any
property or project constructed for eventual sale of single-family
dwellings shall involve a principal obligation in an amount not to
exceed a sum computed on the basis of a separate mortgage for each
single-family dwelling (irrespective of whether such dwelling has a
party wall or is otherwise physically connected with another dwelling or
dwellings) comprising the property or project equal to the total of each
of the maximum principal obligations of such mortgages which would meet
the requirements of section 1709(b)(2) of this title if the mortgagor
were the owner and occupant who had made the required payment on account
of the property prescribed in such paragraph.
(h) Amortization; interest; release of part of mortgaged property from
lien; replacement of certain mortgages by individual mortgages;
commercial and community facilities
Any mortgage insured under this section shall provide for complete
amortization by periodic payments within such terms as the Secretary may
prescribe but not to exceed the maximum term applicable to mortgages
under section 1713 of this title and shall bear interest at such rate as
may be agreed upon by the mortgagor and the mortgagee, except that
individual mortgages of the character described in subsection (g) of
this section covering the individual dwellings in the project may have a
term not in excess of the maximum term applicable to mortgages insured
under section 1709 of this title or the unexpired term of the project
mortgage at the time of the release of the mortgaged property from such
project mortgage, whichever is the greater, 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, and a
mortgage of the character described in subsection (g) of this section
may provide that, at any time after the release of the project from the
rental period prescribed by subsection (d) of this section, such
mortgage may be replaced, in whole or in part, by individual mortgages
covering each individual dwelling in the project in amounts not to
exceed the unpaid balance of the blanket mortgage allocable to the
individual property. Each such individual mortgage may be insured under
this section. Property covered by a mortgage insured under this section
may include eight or more family units and may include such commercial
and community facilities as the Secretary deems adequate to serve the
occupants.
(i) Limitation on aggregate number of dwelling units
The aggregate number of dwelling units (including all units in
multifamily projects or individual dwellings) covered by outstanding
commitments to insure and mortgages insured under this section shall at
no time exceed five thousand dwelling units.
(j) Applicability of other laws
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 this section except individual mortgages of the
character described in subsection (g) of this section covering the
individual dwellings in the project, and as to such individual mortgages
the provisions of subsections (a), (c), (d), (e), (f), (g), (h),\1\ (j),
and (k) \1\ of section 1710 of this title shall be applicable: Provided,
That wherever the words ``Fund'' or ``Mutual Mortgage Insurance Fund''
appear in section 1710 of this title, such reference shall refer to the
General Insurance Fund with respect to mortgages insured under this
section.
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\1\ See References in Text note below.
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(k) Aggregate amount of mortgages insured; termination date
The provisions of sections 1748, 1748a,\1\ 1748b(c), 1748b(i),
1748b(j), 1748c(a), 1748c(b),\1\ and 1748f of this title and the
provisions of section 1748b(a) of this title relating to the aggregate
amount of all mortgages insured under this subchapter shall be
applicable to mortgages insured under this section.
(June 27, 1934, ch. 847, title VIII, Sec. 810, as added Pub. L. 86-372,
title VII, Sec. 704(a), Sept. 23, 1959, 73 Stat. 683; amended Pub. L.
87-70, title VI, Sec. 611(a), June 30, 1961, 75 Stat. 180; Pub. L. 87-
623, Sec. 3, Aug. 31, 1962, 76 Stat. 418; Pub. L. 88-127, Sec. 2, Sept.
23, 1963, 77 Stat. 163; Pub. L. 88-560, title I, Sec. 107(f), Sept. 2,
1964, 78 Stat. 776; Pub. L. 89-117, title II, Sec. 202(c), title XI,
Sec. 1108(w), Aug. 10, 1965, 79 Stat. 466, 506; Pub. L. 90-19,
Sec. 1(a)(3), May 25, 1967, 81 Stat. 17; Pub. L. 90-448, title XVII,
Sec. 1722(f), Aug. 1, 1968, 82 Stat. 611; Pub. L. 91-78, Sec. 2(e),
Sept. 30, 1969, 83 Stat. 125; Pub. L. 91-152, title I, Sec. 101(g), Dec.
24, 1969, 83 Stat. 379; Pub. L. 91-432, Sec. 1(e), Oct. 2, 1970, 84
Stat. 887; Pub. L. 91-473, Sec. 1(e), Oct. 21, 1970, 84 Stat. 1065; Pub.
L. 91-525, Sec. 1(e), Dec. 1, 1970, 84 Stat. 1384; Pub. L. 91-609, title
I, Sec. 101(g), Dec. 31, 1970, 84 Stat. 1770; Pub. L. 92-503, Sec. 1(g),
Oct. 18, 1972, 86 Stat. 906; Pub. L. 93-85, Sec. 1(g), Aug. 10, 1973, 87
Stat. 220; Pub. L. 93-117, Sec. 1(g), Oct. 2, 1973, 87 Stat. 421; Pub.
L. 93-383, title III, Secs. 304(j), 316(e), Aug. 22, 1974, 88 Stat. 678,
685; Pub. L. 95-60, Sec. 1(f), June 30, 1977, 91 Stat. 257; Pub. L. 95-
80, Sec. 1(f), July 31, 1977, 91 Stat. 339; Pub. L. 95-128, title III,
Sec. 301(i), Oct. 12, 1977, 91 Stat. 1131; Pub. L. 95-406, Sec. 1(i),
Sept. 30, 1978, 92 Stat. 879; Pub. L. 95-557, title III, Sec. 301(i),
Oct. 31, 1978, 92 Stat. 2096; Pub. L. 96-71, Sec. 1(i), Sept. 28, 1979,
93 Stat. 501; Pub. L. 96-105, Sec. 1(i), Nov. 8, 1979, 93 Stat. 794;
Pub. L. 96-153, title III, Sec. 301(i), Dec. 21, 1979, 93 Stat. 1112;
Pub. L. 96-372, Sec. 1(i), Oct. 3, 1980, 94 Stat. 1363; Pub. L. 96-399,
title III, Sec. 301(i), Oct. 8, 1980, 94 Stat. 1639; Pub. L. 97-35,
title III, Sec. 331(h)(2), Aug. 13, 1981, 95 Stat. 413; Pub. L. 97-289,
Sec. 1(i), Oct. 6, 1982, 96 Stat. 1230; Pub. L. 98-35, Sec. 1(i), May
26, 1983, 97 Stat. 197; Pub. L. 98-109, Sec. 1(i), Oct. 1, 1983, 97
Stat. 745; Pub. L. 98-181, title IV, Sec. 401(h), Nov. 30, 1983, 97
Stat. 1208; Pub. L. 99-120, Sec. 1(h)(2), Oct. 8, 1985, 99 Stat. 503;
Pub. L. 99-156, Sec. 1(h)(2), Nov. 15, 1985, 99 Stat. 816; Pub. L. 99-
219, Sec. 1(h)(2), Dec. 26, 1985, 99 Stat. 1731; Pub. L. 99-267,
Sec. 1(i)(2), Mar. 27, 1986, 100 Stat. 74; Pub. L. 99-272, title III,
Sec. 3007(h)(2), Apr. 7, 1986, 100 Stat. 105; Pub. L. 99-289, Sec. 1(b),
May 2, 1986, 100 Stat. 412; Pub. L. 99-345, Sec. 1, June 24, 1986, 100
Stat. 673; Pub. L. 99-430, Sept. 30, 1986, 100 Stat. 986; Pub. L. 100-
122, Sec. 1, Sept. 30, 1987, 101 Stat. 793; Pub. L. 100-154, Nov. 5,
1987, 101 Stat. 890; Pub. L. 100-170, Nov. 17, 1987, 101 Stat. 914; Pub.
L. 100-179, Dec. 3, 1987, 101 Stat. 1018; Pub. L. 100-200, Dec. 21,
1987, 101 Stat. 1327; Pub. L. 100-242, title IV, Secs. 401(a)(6),
429(k), Feb. 5, 1988, 101 Stat. 1898, 1919.)
References in Text
The General Insurance Fund, referred to in text, was established by
section 1735c of this title.
Subsection (h) of section 1710 of this title, referred to in subsec.
(j), 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.
(j), was repealed by Pub. L. 105-276, title VI, Sec. 601(c), Oct. 21,
1998, 112 Stat. 2673.
Sections 1748a and 1748c of this title, referred to in subsec. (k),
were repealed by Pub. L. 89-117, title XI, Sec. 1108 (aa), Aug. 10,
1965, 79 Stat. 507.
Prior Provisions
A prior section 810 of title VIII of act June 27, 1934, ch. 847, as
added Sept. 1, 1951, ch. 378, title VI, Sec. 601(d), 65 Stat. 313, which
related to mortgage on housing constructed for personnel of the Atomic
Energy Commission, was classified to section 1748g-1 of this title.
Amendments
1988--Subsec. (h). Pub. L. 100-242, Sec. 429(k), substituted ``at
such rate as may be agreed upon by the mortgagor and the mortgagee'' for
``(exclusive of premium charges for insurance) at not to exceed the rate
applicable to mortgages insured under section 1713 of this title'' and
``such rate as may be agreed upon by the mortgagor and the mortgagee''
for ``not to exceed the rate applicable to mortgages insured under
section 1709 of this title''.
Subsec. (k). Pub. L. 100-242, Sec. 401(a)(6), struck out ``No more
mortgages shall be insured under this section after March 15, 1988,
except pursuant to a commitment to insure before such date.''
1987--Subsec. (k). Pub. L. 100-200 substituted ``March 15, 1988''
for ``December 16, 1987''.
Pub. L. 100-179 substituted ``December 16, 1987'' for ``December 2,
1987''.
Pub. L. 100-170 substituted ``December 2, 1987'' for ``November 15,
1987''.
Pub. L. 100-154 substituted ``November 15, 1987'' for ``October 31,
1987''.
Pub. L. 100-122 substituted ``October 31, 1987'' for ``September 30,
1987''.
1986--Subsec. (k). Pub. L. 99-430 substituted ``September 30, 1987''
for ``September 30, 1986''.
Pub. L. 99-345 substituted ``September 30, 1986'' for ``June 6,
1986''.
Pub. L. 99-289 substituted ``June 6, 1986'' for ``April 30, 1986''.
Pub. L. 99-272 made amendment identical to Pub. L. 99-219. See 1985
Amendment note below.
Pub. L. 99-267 substituted ``April 30, 1986'' for ``March 17,
1986''.
1985--Subsec. (k). Pub. L. 99-219 substituted ``March 17, 1986'' for
``December 15, 1985''.
Pub. L. 99-156 substituted ``December 15, 1985'' for ``November 14,
1985''.
Pub. L. 99-120 substituted ``November 14, 1985'' for ``September 30,
1985''.
1983--Subsec. (k). Pub. L. 98-181 substituted ``September 30, 1985''
for ``November 30, 1983''.
Pub. L. 98-109 substituted ``November 30, 1983'' for ``September 30,
1983''.
Pub. L. 98-35 substituted ``September 30, 1983'' for ``May 20,
1983''.
1982--Subsec. (k). Pub. L. 97-289 substituted ``May 20, 1983'' for
``September 30, 1982''.
1981--Subsec. (k). Pub. L. 97-35 substituted ``1982'' for ``1981''.
1980--Subsec. (k). Pub. L. 96-399 substituted ``September 30, 1981''
for ``October 15, 1980''.
Pub. L. 96-372 substituted ``October 15, 1980'' for ``September 30,
1980''.
1979--Subsec. (k). Pub. L. 96-153 substituted ``September 30, 1980''
for ``November 30, 1979''.
Pub. L. 96-105 substituted ``November 30, 1979'' for ``October 31,
1979''.
Pub. L. 96-71 substituted ``October 31, 1979'' for ``September 30,
1979''.
1978--Subsec. (k). Pub. L. 95-557 substituted ``September 30, 1979''
for ``October 31, 1978''.
Pub. L. 95-406 substituted ``October 31, 1978'' for ``September 30,
1978''.
1977--Subsec. (k). Pub. L. 95-128 substituted ``September 30, 1978''
for ``September 30, 1977''.
Pub. L. 95-80 substituted ``September 30, 1977'' for ``July 31,
1977''.
Pub. L. 95-60 substituted ``July 31, 1977'' for ``June 30, 1977''.
1974--Subsec. (f). Pub. L. 93-383, Sec. 304(j)(1), struck out ``(1)
not to exceed $5,000,000 or (2)'' after ``in an amount''.
Subsec. (g). Pub. L. 93-383, Sec. 304(j)(2), struck out ``not to
exceed $5,000,000 and'' after ``in an amount''.
Subsec. (k). Pub. L. 93-383, Sec. 316(e), substituted ``June 30,
1977'' for ``October 1, 1974''.
1973--Subsec. (k). Pub. L. 93-117 substituted ``October 1, 1974''
for ``October 1, 1973''.
Pub. L. 93-85 substituted ``October 1, 1973'' for ``June 30, 1973''.
1972--Subsec. (k). Pub. L. 92-503 substituted ``June 30, 1973'' for
``October 1, 1972''.
1970--Subsec. (k). Pub. L. 91-609 substituted ``October 1, 1972''
for ``January 1, 1971''.
Pub. L. 91-525 substituted ``January 1, 1971'' for ``December 1,
1970''.
Pub. L. 91-473 substituted ``December 1, 1970'' for ``November 1,
1970''.
Pub. L. 91-432 substituted ``November 1, 1970'' for ``October 1,
1970''.
1969--Subsec. (k). Pub. L. 91-152 substituted ``October 1, 1970''
for ``January 1, 1970''.
Pub. L. 91-78 substituted ``January 1, 1970'' for ``October 1,
1969''.
1968--Subsec. (e). Pub. L. 90-448 substituted ``mortgagor approved
by the Secretary'' for ``private corporation, association, cooperative
society, or trust'' in first sentence, and ``mortgagor'' for
``corporation, association, cooperative society, or trust'' in third and
fourth sentences.
1967--Pub. L. 90-19 substituted ``Secretary'' for ``Commissioner''
wherever appearing in subsecs. (a), (c) to (f), and (h).
1965--Subsec. (e). Pub. L. 89-117, Sec. 1108(w)(1), substituted
``General Insurance Fund'' for ``Armed Services Housing Mortgage
Insurance Fund''.
Subsec. (j). Pub. L. 89-117, Sec. 1108(w)(2), (3), struck out
reference to subsecs. (m) and (p) of section 1713 of this title and, in
proviso, substituted ``General Insurance Fund'' for ``Armed Services
Housing Mortgage Insurance Fund'' and struck out reference to the
appearance of ``Housing Insurance Fund'' in sections 1710 and 1713 of
this title and the appearance of ``Fund'' or ``Mutual Mortgage Insurance
Fund'' in section 1713 of this title.
Subsec. (k). Pub. L. 89-117, Sec. 202(c), substituted ``October 1,
1969'' for ``October 1, 1965''.
1964--Subsec. (f). Pub. L. 88-560 changed limits on mortgages for
multifamily rental property or project, in cl. (2) of the first sentence
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''; and, in the second sentence,
inserted ``, by regulation,'' and substituted provisions 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 $1,000 per room'', respectively.
1963--Subsec. (b)(1). Pub. L. 88-127, Sec. 2(1), included essential
personnel employed or assigned to duty at or in connection with any
research or development installation of the National Aeronautics and
Space Administration or of the Atomic Energy Commission.
Subsec. (d). Pub. L. 88-127, Sec. 2(2), included persons described
in cl. (1)(B) of subsec. (b) of this section.
Subsec. (k). Pub. L. 88-127, Sec. 2(3), substituted ``October 1,
1965'' for ``October 1, 1963''.
1962--Subsec. (k). Pub. L. 87-623 provided that no mortgages shall
be insured under this section after October 1, 1963, except pursuant to
a commitment before such date, and struck out ``and the expiration date
of the Commissioner's authority to insure'' after ``amount of all
mortgages insured''.
1961--Subsec. (b). Pub. L. 87-70, Sec. 611(a)(1), struck out
provisions which required certification by Secretary of Defense or his
designee.
Subsec. (d). Pub. L. 87-70, Sec. 611(a)(2), struck out provisions
which related to certification and advice of Secretary of Defense or his
designee.
Subsec. (l). Pub. L. 87-70, Sec. 611(a)(3), repealed subsec. (l)
which required Secretary of Defense to guarantee Armed Services Housing
Mortgage Insurance Fund from loss.
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.
Transfer of Functions
Atomic Energy Commission abolished and functions transferred by
sections 5814 and 5841 of Title 42, The Public Health and Welfare. See,
also, Transfer of Functions notes set out under those sections.
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
Equitable application of amendment to subsec. (f) of this section by
section 107(f) of Pub. L. 88-560 or pre-amendment provisions to projects
submitted for consideration prior to Sept. 2, 1964, see section 107(g)
of Pub. L. 88-560, set out as a note under section 1713 of this title.
Section Referred to in Other Sections
This section is referred to in sections 1715c, 1715r, 1748g, 1748h-3
of this title.
