42 U.S.C. § 1594 — Contracts for construction

Page 4857 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1594 ices, Office of the Assistant Secretary for Health, Mar. 30, 1987, 52 F.R. 11754. SUBCHAPTER X—DEVELOPMENT SITES FOR ISOLATED DEFENSE INSTALLATIONS Statutory Notes and Related Subsidiaries EXPIRATION DATE For expiration of authority of Housing and Home Ad- ministrator to act under this subchapter, see section 1591c of this title. §§ 1593 to 1593d. Repealed. June 30, 1953, ch. 170, § 19, 67 Stat. 126 Section 1593, acts Sept. 1, 1951, ch. 378, title IV, § 401, 65 Stat. 310; July 14, 1952, ch. 723, § 10(d), 66 Stat. 604, re- lated to acquisition of land for housing and community facilities. Section 1593a, act Sept. 1, 1951, ch. 378, title IV, § 402, 65 Stat. 310, related to acquisition of land for defense installations. Section 1593b, act Sept. 1, 1951, ch. 378, title IV, § 403, 65 Stat. 311, related to payment of annual sums to local authorities in lieu of taxes. Section 1593c, act Sept. 1, 1951, ch. 378, title IV, § 404, 65 Stat. 311, related to use of Treasury moneys. Section 1593d, act Sept. 1, 1951, ch. 378, title IV, § 405, 65 Stat. 311, related to acquisition of land for privately financed defense housing. § 1593e. Housing of persons displaced by acquisi- tion of property for defense installations or industries Upon a finding by the Secretary of Housing and Urban Development that the acquisition of any real property for a defense installation or industry has resulted, or will result, in the dis- placement of persons from their homes on such property, he may (notwithstanding any other provision of this or any other law) issue regula- tions pursuant to which such persons may be permitted to occupy or purchase housing for which credit restrictions established pursuant to the Defense Production Act of 1950 [50 U.S.C. 4501 et seq.] have been relaxed or housing which has been provided or assisted under the provi- sions of this Act (including amendments to other Acts provided herein), subject to any con- ditions or requirements that he determines nec- essary for purposes of national defense. (Sept. 1, 1951, ch. 378, title VI, § 611, 65 Stat. 316; Pub. L. 89–174, § 5(a), Sept. 9, 1965, 79 Stat. 669.) Editorial Notes REFERENCES IN TEXT The Defense Production Act of 1950, referred to in text, is act Sept. 8, 1950, ch. 932, 64 Stat. 798, which is classified to chapter 55 (§ 4501 et seq.) of Title 50, War and National Defense. For complete classification of this Act to the Code, see Tables. This Act and herein, referred to in text, mean act Sept. 1, 1951, ch. 378, 65 Stat. 293, known as the Defense Housing and Community Facilities and Services Act of 1951. For complete classification of this Act to the Code, see Short Title of 1951 Amendment note set out under section 1501 of this title and Tables. Statutory Notes and Related Subsidiaries TRANSFER OF FUNCTIONS For transfer of functions to Secretary of Housing and Urban Development, see note set out under section 1581 of this title. SUBCHAPTER XI—HOUSING FOR MILITARY PERSONNEL § 1594. Contracts for construction (a) Contract provisions; competitive bids The Secretary of Defense or his designee is au- thorized to enter into contracts with any eligi- ble bidder to provide for the construction of ur- gently needed housing on lands owned or leased by the United States and situated on or near a military reservation or installation for the pur- pose of providing suitable living accommoda- tions for military personnel of the armed serv- ices assigned to duty at the military installa- tion at or in the area where the housing is situ- ated. Any such contract shall provide that each housing unit in the project shall be placed under the control of the Secretary of Defense, or his designee, as soon as the unit is available for oc- cupancy as determined by the Secretary of Housing and Urban Development. Any such con- tract shall also provide that, except for stock held by the Secretary of Housing and Urban De- velopment, the capital stock of the mortgagor (where the mortgagor is a corporation) be trans- ferred to the Secretary of Defense, or his des- ignee, when the housing has been completed as determined by the Secretary of Housing and Urban Development. Any such contract shall contain such terms and conditions as the Sec- retary of Defense may determine to be necessary to protect the interests of the United States. Any such contract shall provide for the fur- nishing by the contractor of a performance bond and a payment bond with a surety or sureties satisfactory to the Secretary of Defense, or his designee, and the furnishing of such bonds shall be deemed a sufficient compliance with the pro- visions of section 3131 of title 40, and no addi- tional bonds shall be required under such sec- tion. Before the Secretary of Defense shall enter into any contract as authorized by this section for the construction of housing, he shall invite the submission of competitive bids after adver- tising in the manner prescribed in chapters 221 and 241 of title 10. (b) ‘‘Eligible bidder’’ defined For the purposes of this subchapter, the term ‘‘eligible bidder’’ means a person, partnership, firm, or corporation determined by the Sec- retary of Defense after consultation with the Secretary of Housing and Urban Development (1) to be qualified by experience and financial re- sponsibility to construct housing of the type de- scribed in subsection (a) of this section, and (2) to have submitted the lowest acceptable bid. (c) Acquisition of capital stock of property cov- ered by mortgage Notwithstanding any other provision of law, the Secretary of Defense or his designee is au- thorized to acquire the capital stock of mortga- gors holding property covered by a mortgage in- sured under title VIII of the National Housing Act as amended by the Housing Amendments of 1955 [12 U.S.C. 1748 et seq.], and to exercise the rights as holder of such capital stock during the life of such mortgage and, upon the termination of the mortgage, to dissolve the corporation; to guarantee the payment of notes or other legal 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