12 U.S.C. § 1715j — Untitled legal text

Page 594 TITLE 12—BANKS AND BANKING § 1715j § 1715j. Repealed. Pub. L. 89–117, title XI, § 1108(aa), Aug. 10, 1965, 79 Stat. 507 Section, act June 27, 1934, ch. 847, title II, § 219, as added June 30, 1953, ch. 170, § 8, 67 Stat. 123; amended Aug. 2, 1954, ch. 649, title I, § 122, 68 Stat. 596; July 12, 1957, Pub. L. 85–104, title I, § 113, 71 Stat. 298; June 30, 1961, Pub. L. 87–70, title VI, § 612(f), 75 Stat. 181, author- ized the Commissioner to transfer funds from one or more to one or more of the following funds and ac- counts as he deems necessary to carry out programs for which such funds and accounts were established: Title I Insurance Account, Title I Housing Insurance Fund, Section 203 Home Improvement Account, Housing In- surance Fund, War Housing Insurance Fund, Housing Investment Insurance Fund, Armed Services Housing Mortgage Insurance Fund, National Defense Housing Insurance Fund, Section 220 Housing Insurance Fund, Section 220 Home Improvement Account, Section 221 Housing Insurance Fund, Experimental Housing Insur- ance Fund, Apartment Unit Insurance Fund, and the Servicemen’s Mortgage Insurance Fund. For establishment of the General Insurance Fund, see section 1735c of this title. § 1715k. Rehabilitation and neighborhood con- servation housing insurance (a) Purpose of section The purpose of this section is to aid in the elimination of slums and blighted conditions and the prevention of the deterioration of resi- dential property by supplementing the insur- ance of mortgages under sections 1709 and 1713 of this title with a system of loan and mortgage in- surance designed to assist the financing required for the rehabilitation of existing dwelling ac- commodations and the construction of new dwelling accommodations where such dwelling accommodations are located in an area referred to in paragraph (1) of subsection (d) of this sec- tion. (b) Authorization The Secretary is authorized, upon application by the mortgagee, to insure, as hereinafter pro- vided, any mortgage (including advances during construction on mortgages covering property of the character described in paragraph (3)(B) of subsection (d) of this section) which is eligible for insurance as hereinafter provided, and, upon such terms and conditions as he may prescribe, to make commitments for the insurance of such mortgages prior to the date of their execution or disbursement thereon. (c) Definitions As used in this section, the terms ‘‘mortgage’’, ‘‘first mortgage’’, ‘‘mortgagee’’, ‘‘mortgagor’’, ‘‘maturity date’’, and ‘‘State’’ shall have the same meaning as in section 1707 of this title. (d) Eligibility for insurance; conditions; limits To be eligible for insurance under this section a mortgage shall meet the following conditions: (1) The mortgaged property shall— (A) be located in (i) the area of a slum clearance and urban redevelopment project covered by a Federal-aid contract executed or a prior approval granted, pursuant to title I of the Housing Act of 1949 [42 U.S.C. 1450 et seq.] before August 2, 1954, or (ii) an urban renewal area (as defined in title I of the Housing Act of 1949, as amended), or (iii) the area of an urban renewal project assisted under section 111 of the Housing Act of 1949 [42 U.S.C. 1462], or (iv) an area in which a program of concentrated code enforcement activities is being carried out pursuant to section 117 of the Housing Act of 1949 [42 U.S.C. 1468], or (v) an area, designated by the Secretary, where concentrated housing, physical development, and public service ac- tivities are being or will be carried out in a coordinated manner, pursuant to a locally developed strategy for neighborhood im- provement, conservation, or preservation: Provided, That, in the case of an area within the purview of clause (i) or (ii) of this sub- paragraph, a redevelopment plan or an urban renewal plan (as defined in title I of the Housing Act of 1949, as amended), as the case may be, has been approved for such area by the governing body of the locality involved and by the Secretary of Housing and Urban Development, and the Secretary has deter- mined that such plan conforms to a general plan for the locality as a whole and that there exist the necessary authority and fi- nancial capacity to assure the completion of such redevelopment or urban renewal plan: And provided further, That, in the case of an area within the purview of clause (iii) of this subparagraph, an urban renewal plan (as re- quired for projects assisted under such sec- tion 111 [42 U.S.C. 1462]) has been approved for such area by such governing body and by the Secretary, and the Secretary has deter- mined that such plan conforms to definite local objectives respecting appropriate land uses, improved traffic, public transpor- tation, public utilities, recreational and community facilities, and other public im- provements, and that there exist the nec- essary authority and financial capacity to assure the completion of such urban renewal plan, and (B) meet such standards and conditions as the Secretary shall prescribe to establish the acceptability of such property for mort- gage insurance under this section. (2) The mortgaged property shall be held by— (A) a mortgagor approved by the Sec- retary, and the Secretary may in his discre- tion require such mortgagor to be regulated or restricted as to rents or sales, charges, capital structure, rate of return and meth- ods of operation, and for such purpose the Secretary may make such contracts with and acquire for not to exceed $100 stock or interest in any such mortgagor as the Sec- retary may deem necessary to render effec- tive such restriction or regulations. Such stock or interest shall be paid for out of the General Insurance Fund and shall be re- deemed by the mortgagor at par upon the termination of all obligations of the Sec- retary under the insurance; or (B) by Federal or State instrumentalities, municipal corporate instrumentalities of one or more States, or limited dividend or redevelopment or housing corporations or other legal entities restricted by or under Federal or State laws or regulations of State banking or insurance departments as to