42 U.S.C. § 1594a — Acquisition of military housing financed

Page 4858 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1594a 1 See References in Text note below. instruments required by the Secretary of Hous- ing and Urban Development of such mortgagors; to make payments thereon; and to guarantee and indemnify the Armed Services Housing Mortgage Insurance Fund against loss in cases where so required. All housing facilities placed under the control of the Secretary of Defense pursuant to the provisions of this subchapter shall be deemed to be housing facilities under the jurisdiction of the military department to which they are assigned. (d) Opinion as to title to property; guarantee; title search and title insurance On request by the Secretary of Defense, the Attorney General shall furnish to the Secretary of Defense, or his designee, an opinion as to the sufficiency of title to any property on which it is proposed to construct housing, or on which housing has been constructed, under this sec- tion. If the opinion of the Attorney General is that the title to any such property is good and sufficient, the Secretary of Defense is author- ized to guarantee, or enter into a commitment to guarantee, the mortgagee, under a mortgage on such property which is insured under title VIII of the National Housing Act [12 U.S.C. 1748 et seq.], against any losses that may thereafter arise from adverse claims to title. None of the proceeds of any mortgage loan hereafter insured under such title VIII shall be used for title search and title insurance costs: Provided, That if the Secretary of Defense, or his designee, de- termines in the case of any housing project, that the financing of the construction of such project is impossible unless title insurance is provided, the Secretary of Defense may provide for the payment of the reasonable costs necessary for obtaining title search and title insurance. Any payments by the Secretary of Defense hereunder shall be made from the revolving fund estab- lished under section 1594a(g) 1 of this title. Any determination by the Secretary of Defense under the foregoing proviso shall be set forth in writing, together with the reasons therefor. The Committees on Armed Services of the Senate and House of Representatives shall be promptly notified of each such determination, and of the amount of any payment made by the Secretary of Defense for title search and title insurance costs. (Aug. 11, 1955, ch. 783, title IV, § 403, 69 Stat. 651; Aug. 7, 1956, ch. 1029, title V, §§ 506(b)–(d), 507, 70 Stat. 1110; Pub. L. 86–149, title IV, § 415, Aug. 10, 1959, 73 Stat. 323; Pub. L. 90–19, § 12(d), (h)(1)–(3), May 25, 1967, 81 Stat. 23, 24; Pub. L. 117–81, div. A, title XVII, § 1702(j)(2), Dec. 27, 2021, 135 Stat. 2159.) Editorial Notes REFERENCES IN TEXT The National Housing Act, referred to in subsecs. (c) and (d), is act June 27, 1934, ch. 847, 48 Stat. 1246. Title VIII of the National Housing Act is classified generally to subchapter VIII (§ 1748 et seq.) of chapter 13 of Title 12, Banks and Banking. For complete classification of this Act to the Code, see section 1701 of Title 12 and Ta- bles. Section 1594a(g) of this title, referred to in subsec. (d), was repealed by Pub. L. 87–554, title V, § 501(d), July 27, 1962, 76 Stat. 237. CODIFICATION In subsec. (a), ‘‘section 3131 of title 40’’ substituted for ‘‘section 1 of the Act of August 24, 1935 (49 Stat. 793)’’ on authority of Pub. L. 107–217, § 5(c), Aug. 21, 2002, 116 Stat. 1303, the first section of which enacted Title 40, Public Buildings, Property, and Works. AMENDMENTS 2021—Subsec. (a). Pub. L. 117–81 substituted ‘‘chapters 221 and 241 of title 10’’ for ‘‘section 2305 of title 10’’. 1967—Subsecs. (a) to (c). Pub. L. 90–19, § 12(d), sub- stituted ‘‘Secretary of Housing and Urban Develop- ment’’ for ‘‘Commissioner’’ wherever appearing. Subsec. (a). Pub. L. 90–19, § 12(h)(1), substituted ‘‘Sec- retary of Defense’’ for ‘‘Secretary’’ in fourth and sixth sentences. Subsec. (b). Pub. L. 90–19, § 12(h)(2), substituted ‘‘Sec- retary of Defense’’ for ‘‘Secretary’’. Subsec. (d). Pub. L. 90–19, § 12(h)(3), substituted ‘‘Sec- retary of Defense’’ for ‘‘Secretary’’ in last three sen- tences. 1959—Subsec. (d). Pub. L. 86–149 added subsec. (d). 1956—Subsec. (a). Act Aug. 7, 1956, §§ 506(b), (c), (d), 507, substituted ‘‘eligible bidder’’ for ‘‘eligible builder’’ in first sentence; substituted ‘‘the mortgagor’’ for ‘‘the builder’’ in two places in third sentence; inserted provi- sion before last sentence, relating to furnishing by con- tractor of a performance bond and a payment bond with surety satisfactory to Secretary; and struck out from last sentence ‘‘with any builder’’ after ‘‘Before the Sec- retary shall enter into any contract’’. Subsec. (b). Act Aug. 7, 1956, § 506(b), substituted ‘‘eli- gible bidder’’ for ‘‘eligible builder’’. § 1594a. Acquisition of military housing financed under Armed Services Housing Mortgage In- surance Fund and rental housing at military bases (a) Purchase price Whenever the Secretary of Defense or his des- ignee deems it necessary for the purpose of this subchapter, he may acquire, by purchase, dona- tion, condemnation, or other means of transfer, any land or (with the approval of the Secretary of Housing and Urban Development) (1) any housing financed with mortgages insured under title VIII of the National Housing Act [12 U.S.C. 1748 et seq.] as in effect prior to August 11, 1955, or (2) any housing situated adjacent to a mili- tary installation which was (A) completed prior to July 1, 1952, (B) certified by the Department of Defense, prior to construction, as being nec- essary to meet an existing military family hous- ing need and considered as military housing by the Secretary of Housing and Urban Develop- ment, and (C) financed with mortgages insured under section 207 of the National Housing Act [12 U.S.C. 1713], or (3) any housing situated on or adjacent to a military installation which was (A) completed prior to July 1, 1952, (B) consid- ered by the Department of Defense, prior to con- struction, as being necessary to meet an exist- ing military family housing need and considered as military housing by the Secretary of Housing and Urban Development, and (C) financed with mortgages insured under section 608 of the Na- tional Housing Act [12 U.S.C. 1743], including ad- jacent property constructed primarily to pro- vide commercial facilities for the occupants of such housing. The purchase price of any such Page 4859 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1594a housing shall not exceed the Secretary of Hous- ing and Urban Development’s estimate of the re- placement cost of such housing and related property (not including the value of any im- provements installed or constructed with appro- priated funds) as of the date of final endorse- ment for mortgage insurance reduced by an ap- propriate allowance representing the estimated cost of repairs and replacements necessary to re- store the property to sound physical condition, as determined by the Secretary of Defense or his designee upon the advice of the Secretary of Housing and Urban Development: Provided, That in any case where the Secretary of Defense or his designee acquires a project held by the Sec- retary of Housing and Urban Development, the price paid shall not exceed the face value of the debentures (plus accrued interest thereon) which the Secretary of Housing and Urban Develop- ment issued in acquiring such project. (b) Housing at or near a military installation Notwithstanding any provision of subsection (a) to the contrary, the Secretary of Defense or his designee shall, in the manner provided in subsection (a), acquire by purchase, donation, or other means of transfer or, if the parties cannot agree upon terms for acquisition by such means, by condemnation, any housing described in clause (1) or (2) of subsection (a) of this section which is located at or near a military installa- tion where the construction of housing under the Armed Services Housing Mortgage Insurance Program has been approved by the Secretary. (c) Condemnation; procedures; deposit; payment; interest (1) Condemnation proceedings instituted pur- suant to this section shall be conducted in ac- cordance with the provisions of section 3113 of title 40, or any other applicable Federal statute. Before any such condemnation proceedings are instituted, an effort shall be made to acquire the property involved by negotiation. In any such condemnation proceedings, and in the interests of expedition, the issue of just compensation may be determined by a commission of three qualified, disinterested persons to be appointed by the court. Any commission appointed here- under shall give full consideration to all ele- ments of value in accordance with existing law, and shall have the powers of a master provided in subdivision (c) of rule 53 of the Federal Rules of Civil Procedure and proceedings before it shall be governed by the provisions of para- graphs (1) and (2) of subdivision (d) of such rule. Its action and report shall be determined by a majority and its findings and report shall have the effect, and be dealt with by the court in ac- cordance with the practice prescribed in para- graph (2) of subdivision (e) of such rule. Trial of all issues, other than just compensation, shall be by the court. (2) In any condemnation proceedings insti- tuted to acquire any such housing, or interest therein, the court shall not order the party in possession to surrender possession in advance of final judgment unless a declaration of taking has been filed, and a deposit of the amount esti- mated to be just compensation has been made, under section 3114(a) to (d) of title 40. The amount of such deposit for the purpose of this section shall not in any case be less than an amount equal to the actual cost of the housing (not including the value of any improvements installed or constructed with appropriated funds) as certified by the sponsor or owner of the project to the Secretary of Housing and Urban Development pursuant to any statute or any regulations issued by the Secretary of Housing and Urban Development, reduced by the amount of the principal obligation of the mortgage out- standing at the time possession is surrendered, but any such deposit shall not include any ex- cess mortgage proceeds or ‘‘windfalls,’’ kick- backs and rebates received in connection with the construction of said housing as determined by the Department of Defense, or any other Fed- eral agency. The amount of such deposit in any case where the sponsor or owner has not cer- tified the cost of the project to the Secretary of Housing and Urban Development at August 10, 1959, shall be determined by the Secretary of De- fense, or his designee, in accordance with sec- tions 3114 to 3116 and 3118 of title 40, with a view toward accurately estimating the equity of the sponsor or owner: Provided, That in the event there is withdrawn from the registry of the court by the owner or sponsor a sum of money in excess of the final award of just compensa- tion, this excess shall be repaid to the United States plus a sum equal to 4 per centum per annum on such excess from the time such sum is deposited in the registry of the court: Provided further, That any court in which money is depos- ited as provided in this section shall require the furnishing of security by the owner to protect the United States from any loss by reason of a final award of just compensation of less than the amount deposited: And provided further, That the deposit required to be made by this section shall be without prejudice to any party in the deter- mination of just compensation. Unless title is in dispute, the court, upon application and subject to the foregoing provisions of this subsection, shall promptly pay to the owner at least 75 per centum of the amount so deposited, but such payment shall be made without prejudice to any party to the proceeding. In the event that con- demnation proceedings are instituted in accord- ance with procedures under sections 3114 to 3116 and 3118 of title 40, the court shall order that the amount deposited shall be paid in a lump sum or over a period not exceeding five years in accord- ance with stipulations executed by the parties in the proceedings. In connection with con- demnation proceedings which do not utilize the procedures under such sections, the Secretary of Defense or his designee, after final judgment of the court, may pay or agree to pay in a lump sum or, in accordance with stipulations exe- cuted by the parties to the proceedings, over a period not exceeding five years the difference between the outstanding principal obligation, plus accrued interest, and the price for the prop- erty fixed by the court. Unless such payment is made in a lump sum, the unpaid balance thereof shall bear interest at the rate of 4 per centum per annum. (d) Occupancy; use, or improvement of property before approval of title Property acquired under this section may be occupied, used, and improved for the purposes of Page 4860 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1594a this section prior to the approval of title by the Attorney General as required by sections 3111 and 3112 of title 40. (e) Release of accrual requirements for replace- ment, taxes, and hazard insurance reserves The Secretary of Defense or his designee may, in the case of any housing acquired or to be ac- quired under this section, make arrangements with the mortgage whereby such mortgage will agree to release and waive all requirements of accruals for reserves for replacement, taxes, and hazard insurance provided for under the cor- porate charter and indenture agreement with re- spect to such housing, upon the execution of a written agreement by the Secretary or his des- ignee that the purposes for which such reserves and other funds were accrued will be carried out. (f) Use as public quarters or lease of housing Any housing acquired under this section may be (1) assigned as public quarters to military personnel and their dependents; or (2) leased to military and civilian personnel for occupancy by them and their dependents, upon such terms and conditions as will in the judgment of the Sec- retary of Defense or his designee be in the best interest of the United States, without loss to military personnel of their basic allowance for quarters or appropriate allotments. (Aug. 11, 1955, ch. 783, title IV, § 404, 69 Stat. 652; Aug. 3, 1956, ch. 939, title IV, § 420, 70 Stat. 1019; Aug. 7, 1956, ch. 1029, title V, § 512, 70 Stat. 1111; Pub. L. 85–104, title V, § 504, July 12, 1957, 71 Stat. 303; Pub. L. 85–685, title V, § 513(d), Aug. 20, 1958, 72 Stat. 663; Pub. L. 86–149, title IV, § 418, Aug. 10, 1959, 73 Stat. 323; Pub. L. 86–372, title VII, §§ 702(a), (b), 703, Sept. 23, 1959, 73 Stat. 683; Pub. L. 87–554, title V, § 501(d), July 27, 1962, 76 Stat. 237; Pub. L. 88–560, title X, § 1003, Sept. 2, 1964, 78 Stat. 806; Pub. L. 90–19, § 12(e), (h)(4)–(6), May 25, 1967, 81 Stat. 23, 24.) Editorial Notes REFERENCES IN TEXT The National Housing Act, referred to in subsec. (a), is act June 27, 1934, ch. 847, 48 Stat. 1246. Title VIII of the National Housing Act is classified generally to sub- chapter VIII (§ 1748 et seq.) of chapter 13 of Title 12, Banks and Banking. For complete classification of this Act to the Code, see section 1701 of Title 12 and Tables. CODIFICATION In subsec. (c)(1), ‘‘section 3113 of title 40’’ substituted for ‘‘the Act of August 1, 1888 (25 Stat. 357; 40 U.S.C. 257), as amended’’, in subsec. (c)(2), ‘‘section 3114(a) to (d) of title 40’’ substituted for ‘‘the first section of the Act of February 26, 1931 (46 Stat. 1421)’’, ‘‘sections 3114 to 3116 and 3118 of title 40’’ substituted for ‘‘the Act of February 26, 1931 (46 Stat. 1421)’’ and for ‘‘such Act of February 26, 1931’’, and, in subsec. (d), ‘‘sections 3111 and 3112 of title 40’’ substituted for ‘‘section 355 of the Revised Statutes, as amended’’, on authority of Pub. L. 107–217, § 5(c), Aug. 21, 2002, 116 Stat. 1303, the first sec- tion of which enacted Title 40, Public Buildings, Prop- erty, and Works. AMENDMENTS 1967—Subsec. (a). Pub. L. 90–19, § 12(e)(1)–(3), (h)(4), substituted ‘‘Secretary of Housing and Urban Develop- ment’’ for ‘‘Federal Housing Commissioner’’ wherever appearing in first sentence, ‘‘Secretary of Housing and Urban Development’s’’ for ‘‘Federal Housing Commis- sioner’s’’, ‘‘Secretary of Housing and Urban Develop- ment’’ for ‘‘Commissioner’’ wherever appearing in sec- ond sentence, and ‘‘Secretary of Defense’’ for ‘‘Sec- retary’’ in proviso, respectively. Subsec. (c)(2). Pub. L. 90–19, § 12(e)(1), (h)(5), sub- stituted ‘‘Secretary of Housing and Urban Develop- ment’’ for ‘‘Federal Housing Commissioner’’ wherever appearing and ‘‘Secretary of Defense’’ for ‘‘Secretary’’ in penultimate sentence, respectively. Subsec. (e). Pub. L. 90–19, § 12(h)(6), substituted ‘‘Sec- retary of Defense’’ for ‘‘Secretary’’. 1964—Subsec. (a). Pub. L. 88–560 authorized acquisi- tion of housing on or adjacent to a military installa- tion completed prior to July 1, 1952, considered nec- essary to meet existing military family need, consid- ered military housing by the Federal Housing Commis- sioner, and financed with mortgages insured under sec- tion 608 of the National Housing Act, including adja- cent property constructed primarily to provide com- mercial facilities for the occupants of such housing. 1962—Subsec. (f). Pub. L. 87–554 struck out provision for deposit in the revolving fund of amounts equal to the quarters allowances or appropriate allotments of military personnel to whom housing is assigned as pub- lic quarters and rental charges for leasing of housing to military and civilian personnel. Subsec. (g). Pub. L. 87–554 repealed subsec. (g) cre- ating the revolving fund, enumerating uses of the fund and requiring the deposit in the fund of specified quar- ters allowances or allotments, rental charges and sav- ings realized in operation of housing. Subsec. (h). Pub. L. 87–554 repealed subsec. (h) requir- ing the establishment of the revolving fund on the books of the Treasury Department, limiting appropria- tion authorization for revolving fund capital to $50,000,000 and permitting the transfer of certain funds to provide adequate capital for the fund. 1959—Subsec. (a). Pub. L. 86–372, § 702(a), authorized acquisition of any housing situated adjacent to a mili- tary installation which was completed prior to July 1, 1952, certified by the Department of Defense, prior to construction, as being necessary to meet an existing military family housing need and considered as mili- tary housing by the Federal Housing Commissioner, and financed with mortgages insured under section 207 of the National Housing Act. Subsec. (b). Pub. L. 86–372, § 702(b), substituted ‘‘any housing described in clause (1) or (2) of subsection (a) of this section’’ for ‘‘any housing constructed under the mortgage insurance provisions of sections 1748 to 1748h of title 12 (as in effect prior to Aug. 11, 1955)’’. Subsec. (c)(2). Pub. L. 86–372, § 703, required the amount of the deposit in any case where the sponsor or owner has not certified the cost of the project to be de- termined with a view toward accurately estimating the equity of the sponsor or owner. Pub. L. 86–149 required the amount of the deposit to be not less than an amount equal to the actual cost of the housing as certified reduced by the amount of the principal obligation of the mortgage outstanding at the time possession is surrendered, provided for determina- tion of amount of deposit in cases where cost has not been certified, and required payment of 4 percent inter- est where money has been withdrawn in excess of final award of just compensation. 1958—Subsec. (c). Pub. L. 85–685 inserted provisions authorizing issue of just compensation to be deter- mined by a commission of three qualified, disinterested persons to be appointed by the court, prescribing its powers, relating to its action and report, and requiring trial of all issues, other than just compensation, to be by the court. 1957—Subsec. (a). Pub. L. 85–104 substituted ‘‘rep- resenting the estimated cost of repairs and replace- ments necessary to restore the property to sound phys- ical condition’’ for ‘‘for physical depreciation’’. 1956—Act Aug. 7, 1956, designated existing provisions as subsecs. (a), (c), and (d), and added subsecs. (b) and (e) to (h). Act Aug. 3, 1956, limited purchase price of housing to Commissioner’s estimate of replacement cost of such Page 4861 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1594c housing and related property as of date of final en- dorsement for mortgage insurance reduced by an appro- priate allowance for depreciation, and limited price of any project held by Commissioner to face value of de- bentures, plus accrued interest, which the Commis- sioner issued in acquiring the project. Statutory Notes and Related Subsidiaries REPEALS Pub. L. 87–554, title V, § 501(d), July 27, 1962, 76 Stat. 237, cited as a credit to this section, was repealed by Pub. L. 97–214, § 7(5), July 12, 1982, 96 Stat. 173. §§ 1594a–1, 1594a–2. Repealed. Pub. L. 97–214, § 7(5), July 12, 1982, 96 Stat. 173 Section 1594a–1, Pub. L. 87–554, title V, § 501(a)–(c), July 27, 1962, 76 Stat. 236; Pub. L. 90–110, title VI, § 606, Oct. 21, 1967, 81 Stat. 304; Pub. L. 91–142, title V, § 511, Dec. 5, 1969, 83 Stat. 312; Pub. L. 96–418, title V, § 511, Oct. 10, 1980, 94 Stat. 1767, related to Department of De- fense family housing management account. See section 2831 of Title 10, Armed Forces. Section 1594a–2, Pub. L. 87–554, title V, § 507, July 27, 1962, 76 Stat. 240, related to prior legislative approval for appropriations for family housing. See section 2821(a) of Title 10. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal effective Oct. 1, 1982, and applicable to mili- tary construction projects, and to construction and ac- quisition of military family housing before, on, or after such date, see section 12(a) of Pub. L. 97–214, set out as an Effective Date note under section 2801 of Title 10, Armed Forces. § 1594b. Maintenance and operation of housing; use of quarters; payment of principal, inter- est, and other obligations The Secretary of Defense or his designee is au- thorized to maintain and operate any housing acquired under this title and assign quarters therein to military and civilian personnel and their dependents. Appropriations for quarters al- lowances or appropriate allotments, and rental charges to civilian personnel, may be utilized by the military department concerned for the pay- ment of principal, interest, and other obliga- tions, except those of maintenance and oper- ation, of the mortgagor corporation with respect to such housing projects. Such payments shall not exceed an average of $90 a month per hous- ing unit and total payments for all housing so acquired shall not exceed $21,000,000 per month: Provided, That, in case of the United States Coast Guard, total payments for all housing so acquired shall not exceed $90,000 per month. (Aug. 11, 1955, ch. 783, title IV, § 405, 69 Stat. 652; Aug. 7, 1956, ch. 1029, title V, § 508, 70 Stat. 1110.) Editorial Notes REFERENCES IN TEXT This title, referred to in text, means title IV of act Aug. 11, 1955, ch. 783, 69 Stat. 646, which enacted sec- tions 1594 and 1594a, 1594b to 1594f of this title, amended sections 1720, 1748, and 1748a to 1748g of Title 12, Banks and Banking, and enacted provisions set out as a note under section 1748 of Title 12. For complete classifica- tion of this Act to the Code, see Tables. AMENDMENTS 1956—Act Aug. 7, 1956, substituted ‘‘$21,000,000’’ for ‘‘$9,000,000’’. Statutory Notes and Related Subsidiaries TRANSFER OF FUNCTIONS For transfer of authorities, functions, personnel, and assets of the Coast Guard, including the authorities and functions of the Secretary of Transportation relat- ing thereto, to the Department of Homeland Security, and for treatment of related references, see sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic Secu- rity, and the Department of Homeland Security Reor- ganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6. § 1594c. Services of architects and engineers; use of appropriations; acquisition of sites Whenever the Secretary of Defense or his des- ignee determines that it is desirable in order to effectuate the purposes of this title, the Sec- retary is authorized, without regard to the civil service and classification laws, to procure, by negotiation or otherwise, the services of archi- tects and engineers, or organizations thereof, under such arrangements as he deems desirable, but at an expense not in excess of that permis- sible under the schedule of fees allowed from time to time by the Secretary of Housing and Urban Development in connection with projects assisted under the United States Housing Act of 1937, as amended [42 U.S.C. 1437 et seq.]. Such services may include the development of plans, drawings and specifications for family housing under this title and other services in connection therewith: Provided, That such plans, drawings, and specifications may include the use of any project to be constructed under this subchapter of alternate materials or alternate types of con- struction, including prefabrication, that provide substantially equal value and conform to stand- ards established by the Secretary of Housing and Urban Development: Provided further, That such plans, drawings, and specifications, when developed pursuant to arrangements made under this section after August 7, 1956, shall follow the principle of modular measure, in order that the housing may be built by conventional construc- tion, on-site fabrication, factory precutting, fac- tory fabrication, or any combination of these construction methods: Provided further, That the Secretary of Defense may designate certain sites or parts thereof for family housing to be fur- nished from prefabricated houses or housing components. Such arrangements may include provision for advance or progress payments, for payment by third parties, for payment by the Government of any such compensation as it not paid for by third parties, and shall include provi- sion for reimbursement by third parties to the Government of any compensation or other ex- penses paid by the Government pursuant to this section, and may include other provisions for compensation. Any public works appropriations now or hereafter available to the Departments of the Army, Navy, or Air Force or the Coast Guard may be obligated by the respective de- partments or the Coast Guard for these pur- poses. Reimbursements to the Government on account of payments made pursuant to this sec- tion shall be made to appropriations against which such payments were charged. The Sec- retary of Defense is further authorized to ad- vance or pay to the Department of Housing and Urban Development its ‘‘Appraisal and Eligi-