12 U.s.c. 1715

Page 561

§ 1715

TITLE 12—BANKS AND BANKING

‘‘formed under and restricted by Federal or State housing laws’’.
Subsec. (c). Act Aug. 10, 1948, § 101(n)(1)–(3), amended
first sentence generally, inserted ‘‘except that with respect to mortgages insured under the provisions of the
second proviso of paragraph numbered (2) of this subsection, which mortgages are hereby authorized to have
a maturity of not exceeding forty years from the date
of the insurance of the mortgage, such interest rate
shall not exceed 4 per centum per annum’’ at end of second sentence, and inserted last sentence.
Act July 1, 1948, inserted proviso.
Subsec. (g). Act Aug. 10, 1948, § 101(o), substituted, in
cl. (ii), ‘‘(1)’’ for ‘‘(2)’’.
Subsec. (h). Act Aug. 10, 1948, § 101(p), substituted ‘‘retained by the Housing Administrator and credited to
the Housing Insurance Fund’’ for ‘‘paid to the mortgagor of such property’’.
Subsec. (q). Act Aug. 10, 1948, § 101(r), added subsec.
(q).
1941—Subsec. (a)(1). Act Mar. 28, 1941, § 4(b)(1), struck
out ‘‘district or territory’’.
Subsec. (a)(7). Act Mar. 28, 1941, § 4(b)(2), added par.
(7).
1939—Subsec. (c). Act June 3, 1939, amended first sentence generally.
1938—Act of Feb. 3, 1938, amended section generally.
1935—Act Aug. 23, 1935, inserted ‘‘property’’ before
‘‘project’’ in last sentence.
EFFECTIVE DATE OF 1983 AMENDMENT
Section 431(c) of Pub. L. 98–181 provided that: ‘‘The
amendments made in this section [amending this section and section 1715y of this title] shall not apply with
respect to mortgages insured by the Secretary of Housing and Urban Development before the date of the enactment of this Act [Nov. 30, 1983].’’
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by Pub. L. 97–35 effective Oct. 1, 1981, see
section 371 of Pub. L. 97–35, set out as an Effective Date
note under section 3701 of this title.

Act [Nov. 28, 1990], the Secretary of Housing and Urban
Development shall implement a system of mortgage insurance for mortgages insured under section 207, 221,
223, 232, or 241 of the National Housing Act [12 U.S.C.
1713, 1715l, 1715n, 1715w, 1715z–6] that delegates processing functions to selected approved mortgagees or other
individuals and entities expressly approved by the Department of Housing and Urban Development. Under
such system, the Secretary shall retain the authority
to approve rents, expenses, property appraisals, and
mortgage amounts and to execute a firm commitment.
‘‘(b) FULL INSURANCE PROGRAM.—Notwithstanding
subsection (a), the Secretary shall maintain a viable
system for full insurance programs under such Act
[this chapter] under which all processing functions are
performed by officers and employees of the Department
of Housing and Urban Development.’’
LIMITATION ON NUMBER OF DWELLING UNITS WITH
MORTGAGES NOT PROVIDING FOR COMPLETE AMORTIZATION

Section 446(f) of Pub. L. 98–181 provided that: ‘‘The
aggregate number of dwelling units included in properties covered by mortgages insured pursuant to the
authority granted in the amendments made by this section [amending sections 1713, 1715k, 1715l, and 1715v of
this title] in any fiscal year may not exceed 10,000.’’
AMENDMENTS TO PROVISIONS FOR FAMILY UNIT LIMITS
ON RENTAL HOUSING; EQUITABLE APPLICATION OF
SUCH AMENDMENTS OR PRE-AMENDMENT PROVISIONS
TO PROJECTS SUBMITTED FOR CONSIDERATION PRIOR
TO SEPTEMBER 2, 1964
Section 107(g) of Pub. L. 88–560, as amended by Pub.
L. 90–19, § 21(a), May 25, 1967, 81 Stat. 25, provided that
if the Secretary of Housing and Urban Development determined that it would be inequitable to apply the provisions of the National Housing Act as amended by section 107 [amending sections 1713, 1715e, 1715k, 1715l,
1715v, and 1748h–2 of this title] to a project which had
been submitted for his consideration prior to Sept. 2,
1964, such provisions could be applied to such project
without regard to the amendments made by section 107.

EFFECTIVE DATE OF 1954 AMENDMENT
Amendment by section 112(b) of act Aug. 2, 1954, as
not applicable in any case where the mortgage involved
was insured or the commitment for the insurance was
issued prior to Aug. 2, 1954, see section 112(e) of that
act, set out as a note under section 1710 of this title.
REPEALS
The directory language of, but not the amendment
made by, Pub. L. 90–301, § 3(b), May 7, 1968, 82 Stat. 114,
cited as a credit to this section, was repealed by Pub.
L. 98–181, title IV, § 404(a), Nov. 30, 1983, 97 Stat. 1208.

§ 1714. Taxation
Nothing in this subchapter shall be construed
to exempt any real property acquired and held
by the Secretary under this subchapter from
taxation by any State or political subdivision
thereof, to the same extent, according to its
value, as other real property is taxed.

REGULATIONS

(June 27, 1934, ch. 847, title II, § 208, 48 Stat. 1252;
Feb. 3, 1938, ch. 13, § 3, 52 Stat. 22; Apr. 20, 1950,
ch. 94, title I, § 122, 64 Stat. 59; Pub. L. 90–19,
§ 1(a)(3), May 25, 1967, 81 Stat. 17.)

Section 509(h) of Pub. L. 102–550 provided that: ‘‘The
Secretary of Housing and Urban Development shall
issue regulations necessary to carry out the amendments made by subsections (a) through (g) [amending
this section and sections 1715e, 1715k, 1715l, 1715v, and
1715y of this title], which shall take effect not later
than the expiration of the 1-year period beginning on
the date of the enactment of this Act [Oct. 28, 1992].’’

1967—Pub. L. 90–19 substituted ‘‘Secretary’’ for ‘‘Commissioner’’.
1950—Act Apr. 20, 1950, substituted ‘‘Commissioner’’
for ‘‘Administrator’’.
1938—Act Feb. 3, 1938, corrected error in spelling of
‘‘subdivision’’.

TERMINATION OF TRUST TERRITORY OF THE PACIFIC
ISLANDS
For termination of Trust Territory of the Pacific Islands, see note set out preceding section 1681 of Title
48, Territories and Insular Possessions.
DELEGATION OF PROCESSING OF MORTGAGE INSURANCE
Pub. L. 101–625, title III, § 328, Nov. 28, 1990, 104 Stat.
4138, as amended by Pub. L. 102–242, title II, § 226, Dec.
19, 1991, 105 Stat. 2307, provided that:
‘‘(a) AUTHORITY.—Not later than the expiration of the
60-day period beginning on the date of enactment this

AMENDMENTS

§ 1715. Statistical and economic surveys
The Secretary shall cause to be made in connection with the insurance programs such statistical surveys and legal and economic studies
as he shall deem useful to guide the development of housing and the creation of a sound
mortgage market in the United States, and shall
publish from time to time the results of such
surveys and studies. Expenses of such studies
and surveys, and expenses of publication and
distribution of the results of such studies and

§ 1715a

TITLE 12—BANKS AND BANKING

surveys, shall be charged as a general expense of
such insurance fund or funds, as the Secretary
shall determine.
(June 27, 1934, ch. 847, title II, § 209, 48 Stat. 1252;
Feb. 3, 1938, ch. 13, § 3, 52 Stat. 22; Mar. 28, 1941,
ch. 31, § 4(c), 55 Stat. 62; Apr. 20, 1950, ch. 94, title
I, § 122, 64 Stat. 59; Pub. L. 87–70, title VI, § 612(d),
June 30, 1961, 75 Stat. 181; Pub. L. 89–117, title XI,
§ 1108(f), Aug. 10, 1965, 79 Stat. 504; Pub. L. 90–19,
§ 1(a)(3), (f), May 25, 1967, 81 Stat. 17, 18.)
AMENDMENTS
1967—Pub. L. 90–19 substituted ‘‘Secretary’’ for ‘‘Commissioner’’ wherever appearing and inserted ‘‘in connection with the insurance programs’’ after ‘‘made’’.
1965—Pub. L. 89–117 struck out ‘‘or account or accounts,’’ after ‘‘fund or funds,’’.
1961—Pub. L. 87–70 substituted ‘‘shall be charged as a
general expense of such insurance fund or funds, or account or accounts, as the Commissioner shall determine’’ for ‘‘shall be charged as a general expense of the
Fund, the Housing Fund, and the Defense Housing Insurance Fund in such proportion as the Commissioner
shall determine’’.
1950—Act Apr. 20, 1950, substituted ‘‘Commissioner’’
for ‘‘Administrator’’ wherever appearing.
1941—Act Mar. 28, 1941, substituted ‘‘Fund, the Housing Fund, and the Defense Housing Insurance Fund’’ for
‘‘Fund and the Housing Fund’’.
1938—Act Feb. 3, 1938, inserted ‘‘and the Housing
Fund in such proportion as the Administrator shall determine’’ after ‘‘Fund’’.

§ 1715a. Repealed. June 3, 1939, ch. 175, § 13, 53
Stat. 807
Section, act June 27, 1934, ch. 847, title II, § 210, as
added by act Feb. 3, 1938, ch. 13, § 3, 52 Stat. 22, related
to additional housing insurance.
APPLICATIONS PRIOR TO REPEAL
Section 13 of act June 3, 1939, which repealed this section, also provided: ‘‘That the Administrator is authorized to insure under said section [this section] any
mortgage for the insurance of which an application has
been filed with him prior to the effective date of this
act.’’

§ 1715b. Rules and regulations
The Secretary is authorized and directed to
make such rules and regulations as may be necessary to carry out the provisions of this subchapter.
(June 27, 1934, ch. 847, title II, § 211, as added Feb.
3, 1938, ch. 13, § 3, 52 Stat. 23; amended Apr. 20,
1950, ch. 94, title I, § 122, 64 Stat. 59; Pub. L. 90–19,
§ 1(a)(3), May 25, 1967, 81 Stat. 17.)
AMENDMENTS
1967—Pub. L. 90–19 substituted ‘‘Secretary’’ for ‘‘Commissioner’’.
1950—Act Apr. 20, 1950, substituted ‘‘Commissioner’’
for ‘‘Administrator’’.
REGULATIONS
Pub. L. 98–479, title I, § 104(f), Oct. 17, 1984, 98 Stat.
2226, required Secretary of Housing and Urban Development, not later than Oct. 31, 1984, to issue regulations
to carry out amendments made to section 1715z–7 of
this title by section 436 of Housing and Urban-Rural Recovery Act of 1983, Pub. L. 98–181.

§ 1715c. Labor standards
(a) The Secretary shall not insure under section 1713 or section 1715a of this title or under

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section 1743 of this title pursuant to any application for insurance filed subsequent to the effective date of this section, or under section 1715e
of this title, or under subchapter VII of this
chapter pursuant to any application filed subsequent to sixty days after April 20, 1950, or under
section 1748b or 1748h–2 of this title, or under
section 1750g of this title, a mortgage or investment which covers property on which there is or
is to be located a dwelling or dwellings, or a
housing project, the construction of which was
or is to be commenced subsequent to such date,
unless the principal contractor files a certificate
or certificates (at such times, in course of construction or otherwise, as the Secretary may
prescribe) certifying that the laborers and mechanics employed in the construction of the
dwelling or dwellings or the housing project involved have been paid not less than the wages
prevailing in the locality in which the work was
performed for the corresponding classes of laborers and mechanics employed on construction of
a similar character, as determined by the Secretary of Labor, in accordance with sections
3141–3144, 3146, and 3147 of title 40, prior to the
beginning of construction and after the date of
the filing of the application for insurance. The
provisions of this section shall also apply to the
insurance of any loan or mortgage under section
1715k or section 1715x of this title which covers
property on which there is located a dwelling or
dwellings designed principally for residential
use for twelve or more families. The provisions
of this section shall apply to the insurance
under section 1715l of this title of any mortgage
described in subsection (d)(3) or (d)(4) and (deeming the term ‘‘construction’’ as used in the first
sentence of this subsection to mean rehabilitation) of any mortgage described in subsection
(h)(1) or section 1715z(j)(1) of this title which
covers property on which there is located a
dwelling or dwellings designed principally for
residential use for more than eight families; except that compliance with such provisions may
be waived by the Secretary—
(1) with respect to mortgages described in
such subsection (d)(3) or (d)(4), in cases or
classes of cases where laborers or mechanics
(not otherwise employed at any time in the
construction of the project) voluntarily donate their services without compensation for
the purpose of lowering their housing costs in
a cooperative housing project and the Secretary determines that any amounts saved
thereby are fully credited to the cooperative
undertaking the construction, and
(2) with respect to mortgages described in
such subsection (h)(1) or section 1715z(j)(1) of
this title, in cases or classes of cases where
prospective owners of such dwellings, voluntarily donate their services without compensation, or other persons (not otherwise employed
at any time in the rehabilitation of the property) voluntarily donate their services without compensation, and the Secretary determines that any amounts saved thereby are
fully credited to the nonprofit organization
undertaking the rehabilitation.
The provisions of this section shall also apply to
the insurance of any mortgage under sections
1715v, 1715w, or 1715z–1 of this title except that