in an area which the Commissioner determines to be a resort area, and the Commissioner finds that prior to May 28, 1954, a portion of the accommodations in the project had been made available for rent for transient or hotel purposes (in which case no accommodations in excess of the number which had been made available for such use shall be rented on such basis).

(c) Notwithstanding any other provisions of this Act, no mortgage with respect to multifamily housing shall be insured under this Act (except pursuant to a commitment to insure issued prior to the effective date of the Housing Act of 1954), and (except as to housing coming within the provisions of clause (1) or clause (2) of the preceding subsection) no mortgage with respect to multifamily housing shall be insured for an additional term, unless (1) the mortgagor certifies under oath that while such insurance remains outstanding he will not rent, or permit the rental of, such housing or any part thereof for transient or hotel purposes, and (2) the Commissioner has entered into such contract with, or purchased such stock of, the mortgagor as the Commissioner deems necessary to enable him to prevent or terminate any use of such property or project for transient or hotel purposes while the mortgage insurance remains outstanding.

(d) The Commissioner is hereby authorized and directed to enforce the provisions of this section by all appropriate means at his disposal, as to all existing multifamily housing with respect to which a mortgage was insured under this Act prior to the effective date of the Housing Act of 1954 as well as to all multifamily housing with respect to which a mortgage is hereafter insured under this Act: Provided, That no criminal penalty shall, by reason of enactment of this section, be applicable to the rental or operation of any such existing multifamily housing in violation of any provision of subsection (b) of this section at any time prior to the effective date of the Housing Act of 1954.

(e) As used in this section, (1) the term "rental for transient or hotel purposes" shall have such meaning as prescribed by the Commissioner but rental for any period less than thirty days shall in any event constitute rental for such purposes, and (2) the term "multifamily housing" shall mean (i) a property held by a mortgagor upon which there

are located five or more single family dwellings, or upon which there is located a two-, three-, or fourfamily dwelling, or (ii) a property or project covered by mortgage insured or to be insured under section 207, under section 213 with respect to any property or project of a corporation or trust of the character described in paragraph numbered (1) of subsection (a) thereof, under section 220 if the mortgage is within the provisions of paragraph (3) (B) of subsection (d) thereof, under section 221 if the mortgage is within the provisions of paragraph (3) of subsection (d) thereof, under section 608, under section 803, or under section 908, or (iii) a project with respect to which an insurance contract pursuant to title VII is outstanding.

(f) Promptly after receipt of written notice that any portion of any building is being rented or operated in violation of any provision of this section or of any rule or regulation lawfully issued thereunder, the Commissioner shall investigate the existence of the facts alleged in the written notice and shall order such violation, if found to exist, to cease forthwith.

(g) If such violation does not cease in accordance with such order, the Commissioner shall forward the complaint to the Attorney General of the United States for prosecution of such civil or criminal action, if any, which the Attorney General may find to be involved in such violation.

(h) Whenever he finds a violation of any provision of this section has occurred or is about to occur, the Attorney General shall petition the district court of the United States or the district court of any Territory or other place subject to United States jurisdiction within whose jurisdictional limits the person doing or commiting the acts or practices constituting the alleged violation of this section shall be found, for an order enjoining such acts or practices, and upon a showing by the Attorney General that such acts or practices constituting such violation have been engaged in or are about to be engaged in, a permanent or temporary injuction, restraining order, or other order, with or without such injunction or restraining order, shall be granted without bond.

(i) Any person owning or operating a hotel within a radius of fifty miles of a place where a violation of any provision of this section has occurred or is about to occur, or any group or association of hotel owners or operators within said § 513(i)

fifty-mile radius, or at his or their sole charge or cost, may petition any district court of the United States or the district court of any Territory or other place subject to United States jurisdiction within whose jurisdictional limits the person doing or commiting the acts or practices constituting the alleged violation of this section shall be found, for an order enjoining such acts or practices, and, upon a showing that such acts or practices constituing such violation have been engaged in or are about to be engaged in, a permanent or temporary injunction, restraining order, or other order, with or without such injunction or restraining order, shall be granted.

(j) The several district courts of the United States and the several district courts of the Territories of the United States or other place subject to United States jurisdiction, within whose jurisdictional limits the person doing or committing the acts or practices constituting the alleged violation shall be found, shall, wheresoever such acts or practices may have been done or committed, have full power and jurisdiction to hear, try and determine such matter under subsections (h) and (i) of this section.

SEPARABILITY PROVISION

SEC. 513.1 If any provision of this Act, or the application thereof to any person or circumstances, is held invalid, the remainder of the Act, and the application of such provision to other persons or circumstances, shall not be affected thereby.

APPLICABILITY OF OTHER ACTS

SEC. 514. The provisions of section 10 (a) 1 and 10b of the Federal Home Loan Bank Act, as amended (49 Stat. 294, 295); paragraph seventh of section 5136 of the Revised Statutes, as amended (49 Stat. 709); section 24 of the Federal Reserve Act, as amended (49 Stat. 706); subsection (n) of section 77B of the Bankruptcy Act, as amended (49 Stat. 664); section 5 (c) of the Act approved January 31, 1935, continuing and extending the functions of the Reconstruction Finance Corporation (49 Stat. 1); and all other provisions of law establishing rights under mortgages insured in accordance with the provisions of

1 Through error this section number 513 was duplicated by sec. 132 of the Housing Act of 1954, Public Law 560, 83d Congress, approved August 2, 1954, 68 Stat. 590, 610.

§ 513(i)

the National Housing Act, shall be held to apply to such Act, as amended.

SEC. 515. At any time prior to final endorsement for insurance, the Commissioner, in his discretion, may amend, extend, or increase the amount of any commitment, provided the mortgage, as finally endorsed for insurance is eligible for insurance under the provisions of this Act, and the rules and regulations thereunder, in effect at the time the original commitment to insure was issued.

SEC. 516. The following funds shall be deemed an indebtedness to the United States of the particular insurance fund involved, and the Commissioner is authorized and directed to pay the amount of such indebtedness to the Secretary of the Treasury, with simple interest thereon from the date the funds were advanced to the date of final payment at a rate determined by the Secretary of the Treasury, taking into consideration the average rate on outstanding marketable obligations of the United States from the date the funds were advanced until the date of final payment

(1) funds made available to the Commissioner pursuant to the provisions of sections 4 and 202, exclusive of amounts heretofore refunded, (a) for carrying out title II with respect to mortgages insured under section 203 where such funds were credited to the general reinsurance account in the Mutual Mortgage Insurance Fund, and (b) for the payment of salaries and expenses with respect to mortgage insurance under sections 207 and 210 where such funds were credited to the Housing Insurance Fund;

(2) funds made available to the Commissioner pursuant to sections 602 and 802; and

(3) funds made available to the Commissioner by the Secretary of the Treasury pursuant to section 710.

Payments to the Secretary of the Treasury under this section shall be made in such amounts and at such times as the Commissoiner determines, after consultations with the Secretary of the Treasury, that funds are available for that purpose, taking into consideration the continued solvency of the funds involved. All payments made pursuant to this section shall be covered into the Treasury as miscellaneous receipts.

2 Sec. 516 added by section 9 of the Housing Amendments of 1953, Public Law 94, 83d Congress, approved June 30, 1953, 67 Stat. 121, 123.

SEC. 601. As used in this title

(a) The term "mortgage" means a first mortgage on real estate, in fee simple, or on a leasehold (1) under a lease for not less than ninetynine years which is renewable; or (2) under a lease having a period of not less than fifty years to run from the date the mortgage was executed; and the term "first mortgage" means such classes of first liens as are commonly given to secure advances on, or the unpaid purchase price of, real estate, under the laws of the State in which the real estate is located. together with the credit instruments, if any, secured thereby.

(b) The term "mortgagee" includes the original lender under a mortgage, and his successors and assigns approved by the Commissioner; and the term "mortgagor" includes the original borrower under a mortgage and his successors and assigns.

(c) The term "maturity date" means the date on which the mortgage indebtedness would be extinguished if paid in accordance with periodic payments provided for in the mortgage.

(d) The term "State" includes the several States, and Alaska, Hawaii, Puerto Rico, the District of Columbia, Guam 2 and the Virgin Islands.

SEC. 602. There is hereby created a War Housing Insurance Fund 3 which shall be used by the Commissioner as a revolving fund for the carrying out of the provisions of this title, and mortgages insured under this title shall be known and referred to as "war housing insured mortgages." [For this purpose, the Reconstruction Finance Corporation shall make available to the Administrator such funds as he deem may necessary, not

4

1 Title VI was added to the National Housing Act by act approved March 28, 1941 (55 Stat. 55), and amended by acts approved Sept. 2, 1941 (55 Stat. 686); May 26, 1942 (56 Stat. 301); March 23, 1943 (57 Stat. 42); Oct. 14, 1943 (57 Stat. 570); Oct. 15, 1943 (57 Stat. 571); June 30, 1944 (58 Stat. 648); March 31, 1945 (59 Stat. 47): May 22, 1946 (60 Stat. 207); June 30, 1947 (61 Stat. 193); June 30, 1947 (61 Stat. 202); Aug. 5, 1947 (61 Stat. 777); Dec. 27, 1947 (61 Stat. 945); March 31, 1948 (62 Stat. 101); Aug. 10, 1948 (62 Stat. 1268); April 20, 1950 (64 Stat. 48); September 1, 1951 (65 Stat. 293); July 14, 1952 (66 Stat. 603); and August 11, 1955 (69 Stat. 635). 2 Guam added by Housing Act of 1952, approved July 14, 1952, Public Law 531, 82d Congress, 66 Stat. 601, 603.

The War Housing Insurance Fund was formerly designated as the "Defense Housing Insurance Fund" and the change to War Housing Insurance Fund was pursuant to Section 14 of act approved May 26, 1942 (56 Stat, 301).

So much of Section 602 as relates to the Reconstruction Finance Corporation was repealed by Section 206 of act approved June 30, 1947 (61 Stat. 202).

to exceed $10,000,000, and the amount of notes, debentures, bonds, or other such obligations which the Corporation is authorized to issue and have outstanding at any one time under existing law is hereby increased by an amount sufficient to provide such funds: Provided, That the Secretary of the Treasury is authorized and directed to cancel from time to time, upon the request of the Corporation, notes of the Corporation (which notes are hereby made available to the Secretary of the Treasury for purposes of this section), and to discharge its liability, as respects all sums due and unpaid upon or in connection with such notes at the time of such cancellation and discharge in a principal amount equal to the funds made available to the Commissioner by the Corporation under or by reason of this title together with interest paid to the Treasury thereon: Provided further, That any evidence of indebtedness with respect to funds so disbursed by the Corporation shall be transferred to the Secretary of the Treasury; that the Secretary and the Corporation are authorized and directed to make such adjustments on their books and records as may be necessary to carry out the purposes of this section; that the amount of notes, debentures, bonds, or other such obligations which the Corporation is authorized to issue and have outstanding at any one time under the provisions of this section shall be correspondingly reduced by the amount of notes so canceled by the Secretary, and that any sums at any time received by the Corporation, representing repayments or recoveries of funds so disbursed shall forthwith be covered into the general fund of the Treasury] And provided further, There shall be allocated immediately to the War Housing Insurance Fund the sum of $5,000,000 out of funds made available to the Commissioner for this purpose. General expenses of operation of the Federal Housing Administration under this title may be charged to the War Housing Insurance Fund.

SEC. 603 (a) 5 In order to assist in relieving the acute shortage of housing which now exists.

Section 603 (a) was amended by Section 10 of the Veteran's Emergency Housing Act of 1946 (60 Stat. 207) to show the need for continued insurance under Title VI to assist in relieving the acute shortage of housing and to increase the supply of housing accommodations available to veterans of World War II, rather than housing for war workers. The amendment also removed the requirement that the property be located in an area in which the President finds an acute shortage of housing.

§ 603(a)

and to increase the supply of housing accommodations available to veterans of World War II at prices within their reasonable ability to pay, the Commissioner is authorized, upon application by the mortgagee, to insure as hereinafter provided any mortgage which is eligible for insurance as hereinafter provided, and, upon such terms as the Commissioner may prescribe, to make commitments for the insuring of such mortgages prior to the date of their execution or disbursement thereon: Provided, That the aggregate amount of principal obligations of all mortgages insured under this title shall not exceed $6,150,000,000 except that with the approval of the President such aggregate amount may be increased to not to exceed $6,650,000,000: Provided further,3 That no mortgage shall be insured under section 603 of this title after April 30, 1948, except (A) pursuant to a commitment to insure issued on or before April 30, 1948, or (B) a mortgage given to refinance an existing mortgage insured under section 603 of this title and which does not exceed the original principal amount and unexpired term of such existing mortgage, and no mortgage shall be insured under section 608 of this title after March 1, 1950, except (i) pursuant to a commitment to insure issued on or before March 1, 1950, or (ii) a mortgage given to refinance an existing mortgage insured under section 608 of this title

1 The word "title" was substituted in place of the word "section" by act approved May 26, 1942 (56 Stat. 301).

The original authorization of $100,000,000 for mortgages in sured under this section and section 608 has been increased and decreased from time to time with Presidential approval and pursuant to statute. See Appendix.

a The expiration date of July 1, 1942 (or after such earlier date as the emergency declared by the President on Sept. 8, 1939 by his declaration ceased to exist) as contained in the original enactment of Section 603, was changed by act approved May 26, 1942 (56 Stat. 301) to July 1, 1943 (or such earlier date as the emergency declared by the President on May 27, 1941 to exist, by his declaration ceased to exist); act approved March 23, 1943 (57 Stat. 42) changed the date to July 1, 1944; act approved Oct. 15, 1943 (57 Stat. 571) changed the date to July 1, 1945; act approved Mar. 31, 1945 (59 Stat. 47) changed the date to July 1, 1946; act approved May 22, 1946 (60 Stat. 207) changed the date to June 30, 1947; by act approved June 30, 1947 (61 Stat. 193) expiration date was changed to March 31, 1948; by act approved March 31, 1948 (62 Stat. 101) expiration date was changed to April 30, 1948; by act approved August 10, 1948 (62 Stat. 1268) this proviso as appears in the text represented a complete revision of such provision and continued the expiration date of authority to insure under Section 603 after April 30, 1948, except pursuant to a commitment to insure issued on or before such date or a mortgage to refinance an existing mortgage insured under Section 603, and extended the authority to insure under Section 608 from April 30, 1948 to March 31, 1949.

§ 603 (a)

and which does not exceed the original principal amount and unexpired term of such existing mortgage: Provided further, That no mortgage shall be insured under section 608 of this title unless the mortgagor certifies under oath that in selecting tenants for the property covered by the mortgage he will not discriminate against any family by reason of the fact that there are children in the family, and that he will not sell the property while the insurance is in effect unless the purchaser so certifies, such certifications to be filed with the Commissioner; and violation of any such certification shall be a misdemeanor punishable by a fine of not to exceed $500: And provided further, That the Commissioner shall, in his discretion, have power to require the availability for rental purposes of properties covered by mortgages insured under this title, in such instances and for such periods of time as he may prescribe.

Notwithstanding the first provisio of this subsection mortgages may be insured under section 609 and section 611 of this title if the aggregate amounts of principal obligations of mortgages insured under said sections plus the aggregate amount of principal obligations of mortgages insured under section 610 of this title do not exceed the limitation contained in said section 610 upon the aggregate amount of principal obligations of mortgages insured pursuant to said section.

Notwithstanding the second proviso of this subsection, mortgages otherwise eligible for insurance under section 608 of this title may be hereafter insured thereunder if the application for such insurance was received in any field office of the Federal Housing Administration on or before March 1, 1950, and for such purpose the aggregate amount of principal obligations authorized to be insured under section 608 of this title is increased by not to exceed $500,000,000.7

(b) To be eligible for insurance under this section a mortgage shall

(1) have been made to, and be held by, a mortgagee approved by the Commissioner as responsible and able to service the mortgage properly;

This proviso was added by Section 101 (a) of act approved August 10, 1948 (62 Stat. 1268).

This provisio was added by act approved May 22, 1946 (60 Stat. 207).

See also National Housing Act, Section 908 (g).
Added by act approved April 20, 1950 (64 Stat. 48).

(2)1 involve a principal obligation (including such initial service charges, appraisal, inspection, and other fees as the Commissioner shall approve) in an amount not to exceed 90 per centum of the Commissioner's estimate of the value (as of the date the mortgage is accepted for insurance), except that as to applications received by the Commissioner on or before March 31, 1948, the mortgage may involve a principal obligation in an amount not to exceed 90 per centum of the Commissioner's estimate of the necessary current cost (including the land and such initial service charges and such appraisal, inspection, and other fees as the Commissioner shall approve); of a property, urban, suburban, or rural, upon which there is located a dwelling designed principally for residential use for not more than four families in the aggregate, which is approved for mortgage insurance prior to the beginning of construction. The principal obligation of such mortgage shall in no event, however, exceed-

(A) $5,400 if such dwelling is designed for a single-family residence, or

(B) $7,500 if such dwelling is designed for a two-family residence, or

(C) $9,500 if such dwelling is designed for a three-family residence, or

(D) $12,000 if such dwelling is designed for a four-family residence:

Provided, That the Commissioner may, if he finds that any time or in any particular geographical area it is not feasible, within such limitations of maximum mortgage amounts to construct dwellings without sacrifice of sound standards of construction, design, or livability, prescribe by regulation or otherwise higher maximum mortgage amounts not to exceed

This section was entirely rewritten in the amendments to Title VI contained in Public Law 388, approved May 22, 1946, to provide that the mortgage amount is to be based upon "the Administrator's estimate of the necessary current cost" rather than "the appraised value." The maximum mortgage amounts, $5,400 for single family residences, etc., were reenacted except that the Administrator was given the additional authority to approve higher mortgage amounts as specified in the proviso, if he found that at any time or in any particular geographical area it was not feasible within such limits of maximum mortgage amounts ($5,400 for single family residence, etc.) "to construct dwellings without sacrifice of sound standards of construction, design or livability. . .

This section was further amended by act approved March 31, 1948 (62 Stat. 101) by changing the basis upon which the maximum mortgage amount was to be determined from "necessary current cost" to "value" and added the exception as to applications received by the Commissioner on or before March 31, 1948, in which cases the maximum mortgage amount would be based upon "necessary current cost".

(A) $8,100 if such dwelling is designed for a single-family residence, or

(B) $12,500 if such dwelling is designed for a two-family residence, or

(C) $15,750 if such dwelling is designed for a three-family residence, or

(D) $18,000 if such dwelling is designed for a four-family residence.

(3) have a maturity satisfactory to the Commissioner but not to exceed twenty-five 2 years from the date of the insurance of the mortgage;

(4) contain complete amortization provisions satisfactory to the Commissioner;

(5) bear interest (exclusive of premium charges for insurance) at not to exceed 43 per centum per annum on the amount of the principal obligation outstanding at any time.

(6) provide, in a manner satisfactory to the Commissioner, for the application of the mortgagor's periodic payments (exclusive of the amount allocated to interest and to the premium charge which is required for mortgage insurance as herein provided) to amortization of the principal of the mortgage; and

(7) contain such terms and provisions with respect to insurance, repairs, alterations, payment of taxes, default reserves, delinquency charges, foreclosure proceedings, anticipation of maturity, additional and secondary liens, and other matters as the Commissioner may in his discretion prescribe.

(c) The Commissioner is authorized to fix a premium charge for the insurance of mortgages under this title but in the case of any mortgage such charge shall not be less than an amount equivalent to one-half of 1 per centum per annum nor more than an amount equivalent to 111⁄2 per centum per annum of the amount of the principal obligation of the mortgage outstanding at any time, without taking into account delinquent payments or prepayments. Such premium charges shall be payable by the mortgagee, either in cash, or in debentures issued by the Commissioner under this title at par plus accrued interest, in such manner as may be prescribed by the Commissioner: Provided, That the Commissioner may require the payment of one or more such premium charges at the time the mortgage is insured, at such discount. rate as he may prescribe not in excess of the in

2 Amended by act approved May 26, 1942 (56 Stat. 301), maturity changed from 20 to 25 years.

3 By act approved May 22, 1946 (60 Stat. 207), the maximum interest rate of 5%, was changed to 4%.

§ 603 (c)