12 U.S.C. § 1715d — Insurance of mortgages on property in

Page 584 TITLE 12—BANKS AND BANKING § 1715d 1951—Subsec. (a). Act Sept. 1, 1951, inserted reference to section 1750g of this title after ‘‘subchapter VIII of this chapter,’’. 1950—Act Apr. 20, 1950, § 122, substituted ‘‘Commis- sioner’’ for ‘‘Administrator’’ wherever appearing. Subsec. (a). Act Apr. 20, 1950, § 113, substituted ‘‘or under section 213 of this title, or under title VII pursu- ant to any application filed subsequent to sixty days after the date of enactment of the Housing Act of 1950, or under title VIII, a mortgage or investment’’ for ‘‘or under subchapter VIII of this chapter’’. 1949—Subsec. (a). Act Aug. 8, 1949, inserted ‘‘, or under subchapter VIII of this chapter’’ after ‘‘effective date of this section’’. 1942—Subsec. (a). Act May 26, 1942, inserted reference to section 1743 of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1964 AMENDMENT Pub. L. 88–349, § 4, July 2, 1964, 78 Stat. 240, provided that: ‘‘The amendments made by this Act [amending this section, section 276a of former Title 40, Public Buildings, Property, and Works, and section 1114 of former Title 49, Transportation] shall take effect on the ninetieth day after the date of enactment of this Act [July 2, 1964], but shall not affect any contract in existence on such effective date or made thereafter pur- suant to invitations for bids outstanding on such effec- tive date and the rate of payments specified by section 1(b)(2) of the Act of March 3, 1931, as amended by this Act [now 40 U.S.C. 3141(2)(B)], shall, during a period of two hundred and seventy days after such effective date, become effective only in those cases and reasonable classes of cases as the Secretary of Labor, acting as rapidly as practicable to make such rates of payments fully effective, shall by rule of regulation provide.’’ ENFORCEMENT OF LABOR STANDARDS Labor standards under provisions of this section to be prescribed and enforced by Secretary of Labor, see Reorg. Plan No. 14 of 1950, eff. May 24, 1950, 15 F.R. 3176, 64 Stat. 1267, set out in the Appendix to Title 5, Govern- ment Organization and Employees. § 1715d. Insurance of mortgages on property in Alaska, Guam, Hawaii, and Virgin Islands If the Secretary of Housing and Urban Devel- opment finds that, because of higher costs pre- vailing in Alaska, Guam, Hawaii, or the Virgin Islands, it is not feasible to construct dwellings or manufactured home courts or parks on prop- erty located in Alaska, Guam, Hawaii, or the Virgin Islands without sacrifice of sound stand- ards of construction, design, or livability, with- in the limitations as to maximum or maxima mortgage amounts provided in this chapter, the Secretary may, by regulations or otherwise, pre- scribe, with respect to dollar amount, a higher maximum or maxima for the principal obliga- tion of mortgages insured under this chapter covering property located in Alaska, Guam, Ha- waii, or the Virgin Islands in such amounts as he shall find necessary to compensate for such higher costs but not to exceed, in any event, the maximum or maxima otherwise applicable (in- cluding increased mortgage amounts in geo- graphical areas where cost levels so require) by more than one-half thereof. No mortgage with respect to a project or property in Alaska, Guam, Hawaii, or the Virgin Islands shall be ac- cepted for insurance under this chapter unless the Secretary finds that the project or property is an acceptable risk giving consideration to the acute housing shortage in Alaska, Guam, Ha- waii, or the Virgin Islands: Provided, That any such mortgage may be insured or accepted for insurance without regard to any requirement in any other section of this chapter that the Sec- retary find the project or property to be eco- nomically sound or an acceptable risk. Notwith- standing any of the provisions of this chapter or any other law, the Alaska Housing Authority or the Government of Guam, the Virgin Islands, or Hawaii or any agency or instrumentality there- of shall be eligible as mortgagor or mortgagee, as the case may be, for any of the purposes of mortgage insurance under the provisions of this chapter. Upon application by the mortgagee (1) where the mortgagor is regulated or restricted pursuant to the last sentence of this section or (2) where the Alaska Housing Authority or the Government of Guam, the Virgin Islands, or Ha- waii or any agency or instrumentality thereof is the mortgagor or mortgagee, for the insurance of a mortgage under any provisions of this chap- ter, the Secretary is authorized to insure the mortgage (including advances thereon where otherwise authorized), and to make commit- ments for the insuring of any such mortgages prior to the date of their execution or disburse- ment thereon, under such provision (and this section) without regard to any requirement that the mortgagor shall have paid a prescribed amount on account of such property. Without limiting the authority of the Secretary under any other provision of law, the Secretary is au- thorized, with respect to any mortgagor in such case (except where the Alaska Housing Author- ity is the mortgagor or mortgagee), to require the mortgagor to be regulated or restricted as to rents or sales, charges, capital structure, rate of return, and methods of operation to such an ex- tent and in such manner as the Secretary deter- mines advisable to provide reasonable rentals and sales prices and a reasonable return on the investment. (June 27, 1934, ch. 847, title II, § 214, as added Apr. 23, 1949, ch. 89, § 2(a), 63 Stat. 57; amended Sept. 1, 1951, ch. 378, title VI, § 606, 65 Stat. 315; July 14, 1952, ch. 723, § 10(a)(3), 66 Stat. 603; June 30, 1953, ch. 170, § 25(a), (c), 67 Stat. 128; Pub. L. 86–70, § 10(c), June 25, 1959, 73 Stat. 142; Pub. L. 86–372, title I, § 106, Sept. 23, 1959, 73 Stat. 657; Pub. L. 90–19, § 1(a)(2), (3), May 25, 1967, 81 Stat. 17; Pub. L. 91–152, title IV, § 418(e), Dec. 24, 1969, 83 Stat. 402; Pub. L. 96–399, title III, § 308(c)(1), Oct. 8, 1980, 94 Stat. 1640; Pub. L. 98–479, title II, § 204(a)(4), Oct. 17, 1984, 98 Stat. 2232; Pub. L. 100–242, title IV, § 406(b)(7), Feb. 5, 1988, 101 Stat. 1901; Pub. L. 101–625, title III, § 333, Nov. 28, 1990, 104 Stat. 4141.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in text, was in the original ‘‘this Act’’, meaning act June 27, 1934, ch. 847, 48 Stat. 1246, which is classified principally to this chapter (§ 1701 et seq.). For complete classification of this Act to the Code, see Tables. CODIFICATION Section is comprised of section 214 of act June 27, 1934, as added by section 2(a) of act Apr. 23, 1949, which insofar as Alaska, Hawaii, and Guam individually are Page 585 TITLE 12—BANKS AND BANKING § 1715e concerned, was, formerly, also set out as sections 484d, 723, and 1425 of Title 48, Territories and Insular Posses- sions. Section 2(b) of act Apr. 23, 1949, which was for- merly classified to sections 484e, 724 and 1426 of Title 48, was repealed by act Aug. 2, 1954, ch. 649, title II, § 205, 68 Stat. 622. AMENDMENTS 1990—Pub. L. 101–625 amended section catchline gen- erally, inserting reference to Virgin Islands, sub- stituted ‘‘Alaska, Guam, Hawaii, or the Virgin Is- lands,’’ for ‘‘Alaska, Guam, or Hawaii,’’ after ‘‘costs prevailing in’’, ‘‘Alaska, Guam, Hawaii, or the Virgin Islands’’ for ‘‘Alaska or in Guam or Hawaii’’ wherever appearing, and inserted ‘‘, the Virgin Islands,’’ after ‘‘Government of Guam’’ wherever appearing. 1988—Pub. L. 100–242 struck out ‘‘shall be the owner and occupant of the property or’’ before ‘‘shall have paid a prescribed amount’’ in fourth sentence. 1984—Pub. L. 98–479 substituted ‘‘Insurance of mort- gages on property in Alaska, Guam, and Hawaii’’ for ‘‘Construction of dwellings or mobile home courts or parks in Alaska, Guam, and Hawaii; increased max- imum for mortgage insurance; conditions and limita- tions’’ in section catchline, and substituted ‘‘Notwith- standing’’ for ‘‘Nowithstanding’’ at beginning of third sentence. 1980—Pub. L. 96–399 substituted ‘‘manufactured’’ for ‘‘mobile’’. 1969—Pub. L. 91–152 extended to mobile home courts or parks the special provisions applicable to properties located in Alaska, Guam, or Hawaii. 1967—Pub. L. 90–19 substituted ‘‘Secretary of Housing and Urban Development’’ for ‘‘Federal Housing Com- missioner’’ and ‘‘Secretary’’ for ‘‘Commissioner’’, re- spectively, wherever appearing. 1959—Pub. L. 86–372 inserted ‘‘(including increased mortgage amounts in geographical areas where cost levels so require)’’ after ‘‘maximum or maxima other- wise applicable’’. Pub. L. 86–70 substituted ‘‘Alaska, Guam,’’ for ‘‘the Territory of Alaska or in Guam’’. 1953—Act June 30, 1953, § 25(a), inserted ‘‘or Hawaii’’ after ‘‘Guam’’ wherever appearing. Act June 30, 1953, § 25(c), substituted in fourth sen- tence ‘‘Upon application by the mortgagee (1) where the mortgagor is regulated or restricted pursuant to the last sentence of this section or (2)’’ for ‘‘Upon appli- cation by the mortgagee,’’; and inserted sentence be- ginning ‘‘Without limiting the authority’’. 1952—Act July 14, 1952, inserted ‘‘or in Guam’’ after ‘‘Alaska’’ wherever appearing, inserted ‘‘or maxima’’ after ‘‘maximum,’’ and inserted ‘‘or the Government of Guam or any agency or instrumentality thereof’’ after ‘‘Alaska Housing Authority’’ wherever appearing. 1951—Act Sept. 1, 1951, substituted ‘‘one-half’’ for ‘‘one-third’’ in first sentence. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1988 AMENDMENT Amendment by Pub. L. 100–242 applicable only with respect to mortgages insured pursuant to conditional commitment issued on or after Feb. 5, 1988, or in ac- cordance with direct endorsement program (24 CFR 200.163), if approved underwriter of mortgagee signs ap- praisal report for property on or after Feb. 5, 1988, see section 406(d) of Pub. L. 100–242, set out as a note under section 1709 of this title. STUDY AND REPORT RESPECTING UTILIZATION OF FAC- TORY-BUILT AND OTHER APPROPRIATE TYPES OF HOUSING FOR INDIAN, ETC., HOUSING PROGRAMS Pub. L. 96–399, title III, § 323, Oct. 8, 1980, 94 Stat. 1647, directed Secretary of Housing and Urban Development to study feasibility of utilizing factory-built and other appropriate types of housing (other than the tradi- tional type of site-built housing), to the extent prac- ticable, in carrying out housing programs for Indians and Alaskan Natives, and not later than eighteen months after Oct. 8, 1980, to transmit a report to Con- gress containing the findings and conclusions of such study, including a comparison of costs and benefits of utilizing the traditional type of site-built housing and of utilizing other types of housing in situations in which either type of housing could be used. TERMINATION OF PURCHASES OF OBLIGATIONS No additional notes or obligations to be purchased after June 24, 1954, from funds appropriated pursuant to the Alaska Housing Act, as amended, which is classi- fied, in part, to this section, see section 1701g–5 of this title, and References in Text note thereunder. REVOLVING FUND Establishment of revolving fund under which to ac- count for assets and liabilities in connection with notes and other obligations purchased pursuant to the Alaska Housing Act, as amended, which is classified, in part, to this section, see section 1701g–5 of this title, and Ref- erences in Text note thereunder. Executive Documents ADMISSION OF ALASKA AND HAWAII TO STATEHOOD Alaska was admitted into the Union on Jan. 3, 1959, on issuance of Proc. No. 3269, Jan. 3, 1959, 24 F.R. 81, 73 Stat. c16, and Hawaii was admitted into the Union on Aug. 21, 1959, on issuance of Proc. No. 3309, Aug. 21, 1959, 24 F.R. 6868. 73 Stat. c74. For Alaska Statehood Law, see Pub. L. 85–508, July 7, 1958, 72 Stat. 339, set out as a note preceding section 21 of Title 48, Territories and Insular Possessions. For Hawaii Statehood Law, see Pub. L. 86–3, Mar. 18, 1959, 73 Stat. 4, set out as a note preceding section 491 of Title 48. § 1715e. Cooperative housing insurance (a) Projects insurable In addition to mortgages insured under sec- tion 1713 of this title, the Secretary is author- ized to insure mortgages as defined in section 1713(a) of this title (including advances on such mortgages during construction), which cover property held by— (1) a nonprofit cooperative ownership hous- ing corporation or nonprofit cooperative own- ership housing trust, the permanent occu- pancy of the dwellings of which is restricted to members of such corporation or to bene- ficiaries of such trust; (2) a nonprofit corporation or nonprofit trust organized for the purpose of construction of homes for members of the corporation or for beneficiaries of the trust; or (3) a mortgagor, approved by the Secretary which (A) has certified to the Secretary, as a condition of obtaining the insurance of a mortgage under this section, that upon com- pletion of the property or project covered by such mortgage it intends to sell such property or project to a nonprofit corporation or non- profit trust of the character described in para- graph (1) of this subsection at the actual cost of such property or project as certified pursu- ant to section 1715r of this title and will faith- fully and diligently make and carry out all reasonable efforts to consummate such sale, and (B) shall be regulated or restricted by the Secretary as to rents, charges, capital struc- ture, rate of return, and methods of operation during any period while it holds the mort- gaged property or project; and for such pur-