1949, in sums aggregating not more than $500,000 per year (for 5 years) and additional commitments were authorized on and after July 1 of each of the years 1950 to 1953, respectively, which would require additional contributions of up to $1 million, $1.5 million, $2 million, and $2 million per annum, respectively. The bill provides a similar additional authorization of $2 million on and after July 1, 1954.

Appropriations were also authorized for the loans and grants for improvements and repairs. Appropriations of $2 million were authorized on and after July 1, 1949, and further amounts of $5 million, $8 million, $10 million, and $10 million on July 1 of each of the years 1950 to 1953, respectively. The bill provides an additional authorization of $10 million on or after July 1, 1954.

HOUSING DISPOSITION AND OTHER AMENDMENTS

Section 904.-Authorizes the Housing and Home Finance Administrator to acquire and purchase certain lands in which he holds a leasehold in order to assist him to dispose of Lanham Act housing in Richmond, Calif.

This section would also, in certain unusual types of situations, permit the waiver of the requirements in the Lanham Act for veterans' preference in the purchase of housing which is being disposed of. Your committee has given this provision careful consideration since it has no desire or intention to dilute or weaken the general policy of veterans' preferences in housing. It has been found, however, that the types of situations which would be covered by this provision are such that following the letter of the law requirements of the Lanham Act in extending veterans' preference in the disposal of the housing would not really accomplish the real intent and purpose of the veterans' preference provisions.

Section 905.-Provides for the disposition of housing under the Defense Housing Act of 1951.

Section 906.-Authorizes the head of each constituent agency of the Housing and Home Finance Agency to set up their own advisory committee, which power only the Housing and Home Finance Agency now possesses.

Section 907.-Authorizes the payment by a Federal agency to a local educational agency, fire insurance collected on a school facility after it had become eligible for transfer to the local educational agency but before the transfer had been completed.

Section 908.-Authorizes the Housing and Home Finance Administrator to sell to the University of California, at a fair market value, two projects known as Congress Crest Homes in Riverside, Calif.

Section 909.-Authorizes the Housing and Home Finance Administrator to sell at fair market value to the Wethersfield Housing Authority two war-housing projects, which would be used for moderate-rental housing.

Section 910.-Provides that all housing functions and programs of the Federal Government shall be carried out, consistent with the requirements of the functions and programs, in a manner that will facilitate progress in the reduction of vulnerability of congested urban areas to enemy attack.

Section 912-Repeals section 504 of the Housing Act of 1950, relating to the control of charges and fees imposed by builders and lenders in connection with the FHA and VA home loans.

Section 913 of the bill revises section 3491 of the Revised Statutes, as amended, in two respects: (1) it removes from the statute the requirement that the information on which the suit is based is not in the possession of the Federal Government at the time the suit is instituted, and (2) it provides that in those cases where the action is instituted by a private persor and later taken over by the Federal Government, an award to the private person up to the extent of 10 percent of the proceeds of the suit may be made in the discretion of the court "for the collection of any forfeiture and damages." The quoted language is substituted for the criterion contained in the statute as it now reads that the award up to 10 percent may be made "for disclosure of the information or evidence not in the possession of the United States when such suit was brought."

The present statute grants a private person the right to bring suit at his sole cost and charge in the name of the United States under certain limited circumstances prescribed in the statute.

Among these are included the situation where any civilian presents or causes to be presented for payment or approval to any United States employee any claim against the Federal Government knowing it to be false, fictitious, or fraudulent. It also includes a situation. where in order to obtain payment or approval of such claim, any person makes, uses, or causes to be made or used any false bill, receipt, voucher, roll, account, claim, certificate, affidavit or deposition knowing the same to contain any fraudulent or fictitious statement or entry. It also includes the situation where any person enters into any agreement, combination, or conspiracy to defraud the Federal Government by obtaining or aiding to obtain the payment or allowance of any false and fraudulent claim. The statute includes certain other situations involving persons in the military service of the United States and military property belonging to the United States. The statute permits the recovery of $2,000 forfeiture and double the amount of damages which the Federal Government may have sustained by reason of such acts, together with the costs of suit.

It also allows any person for himself and the Government, in the name of the United States, to bring such suit. If he does so, notice is given to the United States district attorney for the appropriate district, and the Attorney General is given a copy of the complaint and a disclosure in writing of substantially all evidence and information in the person's possession material to the suit. The Government has 60 days after such notice to take over the conduct of the litigation. But if it fails to carry on the suit within 6 months after its appearance in the case, the suit may be carried on by the private person who first brought it.

If the suit is carried on by the United States, the court may award the person who first brought it not more than 10 percent of the proceeds of the suit as compensation for disclosure of information or evidence not in possession of the Government when the suit was brought.

If the suit is not carried on by the United States, the court may award the person who brought it not in excess of 25 percent of the proceeds of the suit as compensation for collection of the forfeiture and damages. Such person is also entitled to receive reasonable expenses and court costs awarded against the defendant, but is liable.

for all costs he himself incurs and has no claim against the United States for recovery of such costs.

Title 31, United States Code, section 235, requires any such suit to be brought within 6 years after the commission of the act because of which the suit is brought.

Your committee is of the opinion that the proposed change in the language of the statute will assure better enforcement of the statute. If the Government has in its possession information constituting a valid basis for such a suit and for any reason fails to institute the appropriate action in court, the change made in the statute by section 913 of the bill will empower a private citizen to institute such action on behalf of the Government.

The statute contains certain built-in protection against frivolous litigation by private persons. First, it requires that the litigation be carried on at the sole cost and charge of the person instituting the suit. Second, it leaves the choice with the Government to take over the conduct of the suit from the private person if the Government so desires, and whether or not the person instituting the suit wishes it to do so. In general, your committee is of the opinion that the amendments made by section 913 of the bill will deter attempts to defraud the Government by the means proscribed by the statute. Sections 914 and 915.-Act controlling and separability provisions.

SECTION BY SECTION ANALYSIS

AMENDMENTS OF TITLE I OF NATIONAL HOUSING ACT

Section 101

This amends section 2 (a) of the National Housing Act, as amended, dealing with portfolio insurance of small home improvement, construction, and conversion loans.

Paragraph (1) provides that after the effective date of the Housing Act of 1954, the Federal Housing Commissioner can pay not in excess of 80 percent of each approved claim for loss.

Paragraph (2) places several additional restrictions on operation of section 2 programs after the effective date of the Housing Act of 1954. Subparagraph (i) prohibits the Federal Housing Commissioner from making insurance contracts under section 2 except with lending institutions subject to Government supervision or approved by the Federal Housing Commissioner on the basis of the institution's credit and experience or facilities to make and service loans, advances, or purchases.

Subparagraph (ii) restricts the eligibility of items for insurance under section 2 to those which substantially protect or improve the basic livability or utility of property, and directs the Commissioner periodically to declare ineligible for insurance any item which he determines does not meet this requirement. It also empowers the Commissioner to declare ineligible for insurance any item he determines is especially subject to selling abuses.

Subparagraph (iii) bars participation by any dealer in the section 2 programs unless he meets the requirements for approval laid down in this subsection. Each lending institution is directed to use due care in selecting dealers with whom it cooperates under the programs, and is required to maintain a dealer file containing a signed application by

the dealer for approval and a signed approval of the dealer by the lending institution. Such approval is to be supported by information in the file establishing the dealer's reliability, financial responsibility, workmanship ability, and equipment to extend services to the borrower. If such a file is not kept in the lending institution available for inspection by the Commissioner, its mere absence constitutes a violation of this provision.

Subparagraph (iv) requires that as a condition precedent to insurance under section 2, each lending institution must make a certificate to the Commissioner at the time it records each loan with him for insurance. This certificate must state (a) that the lender has the dealer's file; (b) that the borrower has signed a Commissioner-approved form of credit application; (c) that the lending institution has given the borrower written notice of approval of such application; (d) that at least 6 days have elapsed between the giving of such notice and the date of disbursement of the loan; and (e) that completion certificates on a form approved by the Commissioner have been obtained from both the borrower and the dealer. The borrower's completion certificate must state his satisfaction with the materials furnished and work performed and state that no cash payment or rebate has been given or promised to the borrower and that the loan proceeds will be entirely applied for the payment of materials and work for which the loan was made. The dealer's completion certificate must state that the materials and work for which the loan was made constitute the entire consideration for the loan, that a copy of the contract or sales agreement has been delivered to the borrower and the lending institution, containing the whole agreement with the borrower, that the borrower has been given or promised no cash payment or rebate, nor commission on future sales, that the materials and work are satisfactory, that the borrower signed his completion certificate after completion of the job, that the signatures on the borrower's and dealer's completion certificates and the note are genuine, that all bills for labor or material have been or will be paid and that if any of these representations on the dealer's certificate are incorrect the dealer agrees to repurchase the note evidencing the loan indebtedness. Subparagraph (v) directs the Commissioner to avoid the use of financial assistance under section 2 with reference to homes not completed and occupied for at least 6 months or which would, as to a particular structure, exceed the dollar limit for the particular type of loan involved under section 2.

The last paragraph of section 2 (a) empowers the Commissioner to insure lending institutions against losses (to the extent of not exceeding 75 percent of each loss) as a result of loans, advances of credit, and purchases made by them after the effective date of the Housing Act of 1954, in order to finance the acquisition of trailer coach mobile dwellings. The following restrictions are placed on the program: (1) the loan cannot exceed $6,000; (2) the borrower must have made at least a 20 percent downpayment in cash and certify that he is making the purchase for his own use or occupancy; (3) the loan must mature in not more than 6 years, 32 days; and (4) the loan must be secured by a first lien on the mobile dwelling.

Section 102

This amends section 2 (f) of the National Housing Act, as amended, by terminating the title I claims account as of June 30, 1954. Thereafter a new account will be established pursuant to subsection 2 (f) in which shall be placed the remaining assets of the title I claims account being terminated. Account moneys not needed for current operations may be invested in obligations guaranteed as to principal and interest by the United States, or in United States obligations. Section 103

Section 8 of the National Housing Act, as amended, is further amended to provide that no mortgage shall be insured thereunder after the effective date of the Housing Act of 1954, except pursuant to an insurance commitment issued on or before that date.

AMENDMENTS OF TITLE II OF NATIONAL HOUSING ACT

Section 104. Section 203 sales housing-Maximum mortgage amounts— Downpayments

This section would amend section 203 of the National Housing Act which provides for the major mortgage insurance program of the FHA with respect to sales housing. Section 203 authorizes the insurance by the FHA of mortgage loans made by approved lending institutions for the construction, purchase, and refinancing of 1- to 4-family dwellings.

Under section 203, as it would be amended by this section the maximum amounts of mortgages which could be insured by FHA would be $18,000 for a 1- or 2-family residence (instead of the present $16,000), $24,000 for a 3-family residence (instead of the present $20,500), or $30,000 in the case of a 4-family residence (instead of the present $25,000), and not to exceed the sum of 95 percent of $8,000 of appraised value and 75 percent of the appraised value in excess of $8,000. However, if the mortgage is on an existing home instead of a new home the maximum amount of the mortgage would be limited to 80 percent of appraised value of the property. The mortgagor would be required to have made at least a 5 percent downpayment in all cases.

Under section 104 of the bill the present subsections (b) (2) (A), (b) (2) (C), and (b) (2) (D) of section 203 of the National Housing Act would be consolidated to provide a simplified form of maximum ratio of loan to value and maximum dollar amount of mortgages. This would eliminate present statutory distinctions within specific programs related to dollar maximum mortgage amounts, and maximum ratio of loan to value as related to the number of bedrooms, whether the mortgagor was the owner and occupant of the house, and other similar unnecessarily complicating factors. It would provide maximum limits and leave specific mortgage amounts to be handled, within the statutory limits. by processing of individual applications under regulations to be prescribed by the Federal Housing Commissioner.

Section 104 would add a new provision to section 203 which would make clear that a dwelling, designed principally for a 1- or 2-family residence may be rented temporarily in appropriate cases for school purposes.