[S. 1230, 85th Cong., 1st sess.]

A BILL To authorize the Housing and Home Finance Administrator to provide urban planning fellowships

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That there is hereby authorized to be appropriated the sum of $500,000 annually for a three-year period, commencing on or after July 1, 1957, to be used by the Housing and Home Finance Administrator for the purpose of providing fellowships in public or private nonprofit institutions of higher education for the graduate training of qualified persons in urban planning and related fields.

[S. 1479, 85th Cong., 1st sess.]

A BILL To authorize the transfer of certain housing projects to the city of Decatur, Illinois, or the Decatur Housing Authority

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That, notwithstanding any determination heretofore made under section 603 of the Act entitled "An Act to expedite the provision of housing in connection with national defense, and for other purposes", approved October 14, 1940, as amended, that the North Jasper Homes housing projects, Ill-11218 and Ill-11219, Decatur, Illinois, constitutes housing of a permanent character, such housing projects shall hereafter be deemed to be of a temporary character for the purposes of such Act.

SEC. 2. Notwithstanding any other provision of law, the Housing and Home Finance Administrator is authorized to sell and convey as temporary housing all right, title, and interest of the United States in and to housing projects, Ill-11218 and Ill-11219, to the city of Decatur, Illinois, or to the Decatur Housing Authority. Any such sale and conveyance shall be made at a price equal to the fair market value, as determined by the Housing and Home Finance Administrator on the basis of an appraisal made by an independent real estate expert, of the land (excluding any improvements made thereto by the United States) on which such projects are situated.

SEC. 3. The provisions of this Act shall be effective only if the sale herein authorized is made within six months after the date of enactment of this Act.

[S. 1515, 85th Cong., 1st sess.]

A BILL To provide for the conveyance of certain housing projects owned by the United States to the Housing Authority of the City of Decatur, Illinois

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) in the administration of the Act entitled "An Act to expedite the provision of housing in connection with national defense, and for other purposes", approved October 14, 1940, as amended, the North Jasper Homes projects, Ill-11218 and Ill-11219, located in the city of Decatur, Illinois, shall be deemed to be housing of a temporary character, not withstanding any determination heretofore made under section 603 of such Act that such housing is of a permanent character.

(b) Notwithstanding any other provision of law, the Housing and Home Finance Administrator is authorized to sell and convey all right, title, and interest of the United States in and to such projects to the Decatur Housing Authority as temporary housing at a price which shall not exceed the fair market value of the land (excluding improvements made thereto by the United States) on which such projects are situated. Such value shall be determined by the Housing and Home Finance Administrator on the basis of an appraisal made by an independent real estate expert.

(c) The provisions of this Act shall be effective only if the sale is made within six months after the date of enactment of this Act.

[S. 1531, 85th Cong., 1st sess.]

A BILL To provide for the conveyance of certain property under the jurisdiction of the Housing and Home Finance Administrator to the State of Louisiana

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That, notwithstanding the provisions of any other law, the Housing and Home Finance Administrator shall convey to the

State of Louisiana all right, title, and interest of the United States in and to the projects identified as LA-16011 and LA-16012, constructed under the provisions of the Act entitled "An Act to expedite the provision of housing in connection with national defense, and for other purposes", approved October 14, 1940, as amended (42 U. S. C. 1521, and the following), on real property constituting a part of the grounds of the Central Louisiana Hospital for the Insane leased from the State of Louisiana. Such conveyance is to be made in consideration of the payment of $300,000 by the State of Louisiana in three equal annual installments.

SEC. 2. The provisions of this Act shall be effective only if the first installment is paid before January 1, 1958.

[S. 1553, 85th Cong., 1st sess.]

A BILL To increase by $200,000,000 the borrowing authority of the Housing and Home Finance Agency for purposes of making loans for college housing

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 401 (d) of the Housing Act of 1950, as amended, is amended by striking out "$750,000,000" and inserting in lieu thereof "$950,000,000".

[S. 1569, 85th Cong., 1st sess.]

A BILL To provide for the conveyance of certain real property of the United States to the city of Las Vegas, Nevada

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That, notwithstanding any other provision of law, the Housing and Home Finance Administrator is authorized and directed to sell and convey to the Housing Authority of the city of Las Vegas, Nevada, for a total price of $452,200, all of the right, title, and interest of the United States in and to the housing project known as Kelso-Turner (NEV-26021) located in the city of Las Vegas, Nevada. Five per centum of the purchase price shall be paid at the time of closing and the balance of the purchase price shall be secured by a mortgage and shall be paid in equal annual installments within twenty years from the date of sale with the right of prepayment of all or any part thereof. The unpaid balances shall bear interest at the rate of 4% per centum per annum. The Administrator may impose such other terms and conditions as he may deem necessary or desirable. Any sale pursuant to this authorization shall be made within three months after the date of enactment of this Act.

[S. 1609, 85th Cong., 1st sess.]

A BILL To amend the National Housing Act and other laws relating to housing, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Housing Amendments of 1957."

TITLE I-FEDERAL NATIONAL MORTGAGE ASSOCIATION-MORTGAGE PURCHASES

SEC. 101. (a) Section 303 (d) of the National Housing Act, as amended, is hereby amended by striking everything following “(2)" and inserting in lieu thereof the following: "an amount equal to the Association's surplus, surplus reserves, and undistributed earnings, computed as of the close of the cutoff date. In addition to the preferred stock provided for in the first sentence of this subsection, the Association is authorized and directed to issue and deliver to the Secretary of the Treasury, and the Secretary of the Treasury is authorized and directed to accept, preferred stock of the Association having an aggregate par value equal to $100,000,000.”

(b) Section 303 (e) of said Act is hereby amended by striking everything following "(2)" and inserting in lieu thereof the following: "the release to the Association of any and all rights or claims which the United States might otherwise have or claim in and to the Association's capital, surplus, surplus reserves, and undistributed earnings, computed as of the close of the aforesaid

cutoff date. The preferred stock of the Association delivered to the Secretary of the Treasury pursuant to the second sentence of subsection (d) of this section shall be in exchange for a note or notes of the Association aggregating $100,000,000 in principal amount (and upon which the accrued interest shall have been paid through the date of delivery) held by the Secretary of the Treasury pursuant to authority contained in section 304 (c)."

(c) Section 304 (c) of said Act is hereby amended by striking the second sentence thereof, and inserting in lieu thereof: "The Secretary of the Treasury shall not at any time purchase any obligations under this subsection if (1) all of the preferred stock of the Association held by the Secretary of the Treasury has been retired, or (2) such purchase would increase the aggregate principal amount of his then outstanding holdings of such obligations under this subsection to an amount greater than $1,700,000,000, or an amount greater than $1,350,000,000 if such purchase is made prior to July 1, 1957."

SEC. 102. Section 305 (b) of said Act is hereby amended by striking the second sentence thereof, and inserting in lieu thereof "Subject to the provisions of this section, the prices to be paid by the Association for mortgages purchased in its operations under this section shall be established from time to time by the Association."

SEC. 103. Section 305 (c) of said Act is hereby amended by changing the colon immediately preceding the proviso to a period, and by striking the proviso, and by striking "$200,000,000" and inserting in lieu thereof "$450,000,000".

SEC. 104. Section 309 (c) of said Act is hereby amended by changing the period at the end thereof to a colon, and inserting immediately thereafter the following: "Providing, That in computing such equivalent amount, there shall be deducted from the gross income of the Association, with respect to such secondary market operations, all expenses and other deductions which would be authorized by the Federal income tax laws to be deducted if the Association were not exempt from such taxes with respect to such secondary market operations and any amounts paid to the Secretary of the Treasury as a return on his investment in the securities of the Association."

TITLE II-FEDERAL HOUSING ADMINISTRATION-MORTGAGE

INSURANCE

SEC. 201. (a) Section 203 of the National Housing Act, as amended, is hereby amended by changing paragraph (b) (2) to read as follows:

“(2) Involve a principal obligation (including such initial service charges, appraisal, inspection, and other fees as the Commissioner shall approve) in an amount not to exceed $20,000 in the case of property upon which there is located a dwelling designed principally (whether or not it may be intended to be rented temporarily for school purposes) for a one- or two-family residence; or $27,500 in the case of a three-family residence; or $35,000 in the case of a four-family residence; and not to exceed an amount equal to the sum of (i) 96 per centum (but, in any case where the dwelling is not approved for mortgage insurance prior to the begining of construction, unless the construction of the dwelling was completed more than one year prior to the application for mortgage insurance, 90 per centum) of $10,000 of the appraised value of the property, as of the date the mortgage is accepted for insurance, (ii) 85 per centum of such value in excess of $10,000 but not in excess of $16,000, and (iii) 70 per centum of such value in excess of $16,000.”.

(b) Said section 203 is further amended by adding the following paragraphs at the end of subsection (b):

"(8) In the case of a mortgagor who is not the occupant of the property, have a principal obligation not in excess of an amount equal to 5 per centum of the amount computed under the provisions of paragraph (2) of this subsection.

"(9) Be executed by a mortgagor who shall have paid on account of the property at least 4 per centum, or such larger amount as the Commissioner may determine, of the Commissioner's estimate of the cost of acquisition in cash or its equivalent: Provided, That with respect to a mortgage executed by a mortgagor who is sixty years of age or older as of the date the mortgage is endorsed for insurance or with respect to a mortgage meeting the requirements of subsection (i) of this section, the mortgagor's payment required by this subsection may be paid by a corporation or person other than the mortgagor under such terms and conditions as the Commissioner may prescribe.".

(c) Said section 203 is further amended by changing subsection (i) to read as follows:

"(i) The Commissioner is authorized to insure under section 203 any mortgage meeting the requirements of subsection (b) of this section, except as modified by this subsection, which involves a principal obligation not in excess of $6,750 and not in excess of 96 per centum of the appraised value of a property located in an area where the Commissioner finds it is not practicable to obtain conformity with many of the requirements essential to the insurance of mortgages on housing in built-up urban areas, upon which there is located a dwelling designed principally for a single family residence, and which is approved for mortgage insurance prior to the beginning of construction: Provided, That the Commissioner finds that the property with respect to which the mortgage is executed is an acceptable risk, giving consideration to the need for providing adequate housing for families of low and moderate income particularly in suburban and outlying areas or small communities.".

(d) The Federal Housing Commissioner, in establishing maximum loan-tovalue ratios for mortgages insured by him under the National Housing Act, as amended by sections 201, 203, and 204 of this Act, shall determine that such ratios are in the public interest after taking into consideration (1) the effect of such ratios on the national economy and on conditions in the building industry, and (2) the availability or unavailability of residential mortgage credit assisted under the Servicemen's Readjustment Act of 1944, as amended.

SEC. 202. Section 207 (c) of said Act is hereby amended by striking "$8,100 per family unit" in the second sentence and inserting in lieu thereof "$8,100 per family unit (or $8,400 per family unit as to projects to consist of elevator-type structures)" and by adding immediately before the period at the end of such second sentence: ": Provided further, That the Commissioner may permit single elderly persons to use and occupy such units".

SEC. 203. (a) Section 220 (d) of said Act is hereby amended by striking all of paragraph (3) that appears before clause (B) and inserting in lieu thereof the following:

"(3) The mortgage shall

"(A) (i) involve a principal obligation (including such initial service charges, appraisal, inspection, and other fees as the Commissioner shall approve) in an amount not to exceed $20,000 in the case of property upon which there is located a dwelling designed principally for a one- or twofamily residence; or $27,500 in the case of a three-family residence; or $35,000 in the case of a four-family residence; or in the case of a dwelling designed principally for residential use for more than four families (but not exceeding such additional number of family units as the Commissioner may prescribe) $35,000 plus not to exceed $7,000 for each additional family unit in excess of four located on such property; and not to exceed an amount equal to the sum of (1) 96 per centum (but, in any case where the dwelling is not approved for mortgage insurance prior to the beginning of construction, unless the construction of the dwelling was completed more than one year prior to the application for mortgage insurance, 90 per centum) of $10,000 of the Commissioner's estimate of replacement cost of the property, as of the date the mortgage is accepted for insurance, (2) 85 per centum of such replacement cost in excess of $10,000 but not in excess of $16,000, and (3) 70 per centum of such replacement cost in excess of $16,000: Provided, That in the case of properties other than new construction, the foregoing limitations upon the amount of the mortgage shall be based upon appraised value rather than upon the Commissioner's estimate of the replacement cost;

"(ii) in the case of a mortgagor who is not the occupant of the property, have a principal obligation not in excess of an amount equal to 85 per centum of the amount computed under the provisions of subsection (i); or". (b) Said paragraph (3) of section 220 (d) is hereby further amended by striking the phrase "not to exceed" at the first four places it appears in clause (B) and inserting in lieu thereof at each such place the phrase "not exceed". SEC. 204. Section 222 (b) of said Act is hereby amended to read as follows: "(b) To be eligible for insurance under this section a mortgage shall

"1. Meet the requirements of section 203 (b) of this title except as such requirements are modified by this section;

"2. Involve a principal obligation (including such initial service charges, appraisal, inspection, and other fees as the Commissioner shall approve) in an amount not to exceed $17,300;

"3. Have a principal obligation not in excess of 96 per centum of the appraised value of the property; and

"4. Be executed by a mortgagor who at the time of application for insurance is certified as a 'serviceman' and who at the time of insurance is the owner of the property and either occupies the property or certifies that his failure to do so is the result of his military assignment, or in the case of the United States Coast Guard, other assignment.".

SEC. 205. Section 223 (a) of said Act is hereby amended by striking the second proviso in paragraph (7) and inserting in lieu thereof the following: "Provided further, That a mortgage of the character described in paragraph 1, 2, 3, 4, 5, or 6 shall have a maturity, a principal obligation and an interest rate not in excess of the maxima applicable to loans under section 203, 207, or 213, as the case may be.".

SEC. 206. (a) Section 803 (a) of said Act is hereby amended by striking "June 30, 1958" and inserting in lieu thereof "June 30, 1959".

(b) Section 803 (b) of said Act is hereby amended by striking the first sentence of paragraph (3) and inserting in lieu thereof the following: "The mortgage shall involve a principal obligation in an amount

"(A) not to exceed an average of $16,500 per family unit for such part of such property or project (including ranges, refrigerators, shades, screens, and fixtures) as may be attributable to dwelling use, less the Commissioner's estimated value of any usable utilities within the boundaries of the property or project owned by the United States and not provided for out of the proceeds of the mortgage: Provided, That should the financing of housing to be constructed pursuant to a single invitation for bids be accomplished by two or more mortgages, the principal obligation of any single mortgage may exceed an average of $16,500 per family unit if the sum of the principal obligations of all mortgages for such housing does not exceed an average of $16,500 per family unit; and

"(B) not to exceed the bid of the eligible bidder with respect to the property or project under section 403 of the Housing Amendments of 1955, which bid shall bear a reasonable relation to the Commissioner's estimate of the replacement cost of the property or project when the proposed improvements are completed: Provided, That the Commissioner's estimate of replacement cost may include the cost of the land, the physical improvements, and the utilities within the boundaries of the property or project less the estimated value of any usable utilities within the boundaries of the property or project owned by the United States and not provided for out of the proceeds of the mortgage.".

OTHER PROVISIONS

SEC. 207. Section 2 of said act is hereby amended, effective as of January 1, 1958, by adding the following new paragraph after paragraph (f) and redesignating the present paragraph (g) as paragraph (h):

"(g) Any payment for loss made to an approved financial institution under this section shall be final and incontestable after two years from the date the claim was certified for payment by the Commissioner in the absence of fraud or misrepresentation on the part of the financial institution which received the payment.".

SEC. 208. Section 203 (d) of said Act is hereby repealed.

SEC. 209. Section 204 of said Act is hereby amended by adding the following new subsection:

"(k) Notwithstanding any other provisions of this section and sections 604 and 904 of this Act, with respect to any debentures issued pursuant to section 204, 604, or 904, the Commissioner may (1) include in the debentures reasonable payments made by the mortgagee, with the approval of the Commissioner, for the purpose of protecting, operating, or preserving the property and taxes imposed upon any deed or other instrument by which the property was acquired by the mortgagee and transferred or conveyed to the Commissioner, and (2) terminate the mortgagee's obligation to pay mortgage insurance premiums upon receipt of an application for debentures filed by the mortgagee.”.

SEC. 210. (a) Section 204 (d) of said Act is amended by striking, in the second sentence, the words "determined by the Commissioner, with the approval of the Secretary of the Treasury, at the time the mortgage was offered for insurance, but not to exceed 3 per centum per annum" and inserting in lieu thereof "established by the Commissioner pursuant to section 224 of this Act". (b) Section 207 (i) of said Act is amended by striking, in the second sentence, the words "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