48 Stat. 1246

PUBLIC LAWS-CH. 94-APR. 20, 1950

[64 STAT.

[CHAPTER 94]
AN ACT
To amend the National Housing Act, as amended, and for other purposes.

April 20, 1950
[S. 2246]
[Public Law 476]
Housing Act of 1I50.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That this Act may
be cited as the "Housing Act of 1950".
TITLE I-AMENDMENTS OF NATIONAL HOUSING ACT
AMENDMENTS OF TITLE I OF NATIONAL HOUSING ACT

48 Stat. 1246.
12 U. S. C. § 1703;
Sup. III, § 1703.
63 Stat. 905.
12U. S.C., Sup. III,
1703 (a).

SEC. 101. (a) Section 2 of the National Housing Act, as amended,
is hereby amended(1) by striking out of the first sentence of subsection (a)
thereof "March 1, 1950", and inserting in lieu thereof "July 1,

49 Stat. 1187.
12 U.S. ., Sup. I,
5 1703 (a).

(2) by striking out the last sentence of subsection (a) and
inserting in lieu thereof the following: "The aggregate amount
of principal obligations of all loans, advances of credit, and obligations purchased with respect to which insurance may be heretofore or hereafter granted under this section and outstanding at
any one time shall not exceed $1,250,000,000."
(3) by striking out of clause numbered (1) in subsection (b)
"$4,500" and inserting in lieu thereof "$3,000";
(4) by striking out of clause numbered (2) in subsection (b)
the words "residential or"; and
(5) by striking out of subsection (f) the word "title" in each
place it appears therein and inserting in lieu thereof the word
"section".
(b) This section shall take effect as of March 1, 1950.
SEC. 102. Title I of said Act, as amended, is hereby amended by
adding at the end thereof the following new section:

62 Stat. 1275.
12 U. S. C., Sup.
11703 (b).

,

53 Stat. 805.
12U.S.C.,Sup.III,
i1703 (b).

53 Stat. 806.
12 U. S. C. 1703 (f).
Effective date.
48 Stat. 1246.
12 U. S. C. S§ 17021706b; Sup. III, § 1702

et seq.

"INSURANCE OF MORTGAGES
Suburban

housing.

48 Stat. 1246i.
12U. S.C. 1701 and
note; Sup. Ill, § 1701c
et seq.
Post, pp. 51-54, 57-

59, 80, 81, 258, 259, 894.

48 Stat. 1247.
12 U. . C. 1707 (a).

Aggregate principal
obligations.

"SEc. 8. (a) To assist in providing adequate housing for families
of low and moderate income, particularly in suburban and outlying
areas, this section is designed to supplement systems of mortgage
insurance under other provisions of the National Housing Act by
making feasible the insurance of mortgages covering properties in
areas where it is not practicable to obtain conformity with many of the
requirements essential to the insurance of mortgages on housing in
built-up urban areas. The Commissioner is authorized, upon application by the mortgagee, to insure, as hereinafter provided, any mortgage (as defined in section 201 of this Act) offered to him 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 section and outstanding at any one time shall not exceed $100,000,000, except that with the
approval of the President such aggregate amount may be increased
at any time or times by additional amounts aggregating not more
than $150,000,000 upon a determination by the President, taking into
account the general effect of any such increase upon conditions in the
building industry and upon the national economy, that such increase
is in the public interest.

64 STAT.]

SIST CONG., 2D SESS.-CH. 94-APR. 20, 1950

"(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;
"(2) 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 $4,750, except
that the Commissioner may by regulation increase this amount
to not to exceed $5,600 in any geographical area where he finds
that cost levels so require, and not to exceed 95 per centum of the
appraised value, as of the date the mortgage is accepted for insurance, of a property, urban, suburban, or rural upon which there
is located a dwelling designed principally for a single-family
residence, the construction of which is begun after the date of
enactment of the Housing Act of 1950, and which is approved for
mortgage insurance prior to the beginning of construction: Provided, That the mortgagor shall be the owner and occupant of
the property at the time of insurance and shall have paid on
account of the property at least 5 per centum of the appraised
value in cash or its equivalent, or shall be the builder constructing
the dwelling, in which case the principal obligation shall not
exceed $4,250, except that the Commissioner may by regulation
increase this amount to not to exceed $5,000 in any geographical
area where he finds that cost levels so require, and shall not exceed
85 per centum of the appraised value of the property: And provided further, That the Commissioner finds that the project with
respect to which the mortgage is executed is an acceptable risk,
giving consideration to the need for providing adequate housing
for families of low and moderate income particularly in suburban
and outlying areas;
"(3) have a maturity satisfactory to the Commissioner but not
to exceed thirty years from the (late of insurance of the mortgage;
"(4) contain complete amortization provisions satisfactory to
the Commissioner requirilg periodic payments by the mortgagor
not in excess of his reasonable ability to pay as determined by the
Commissioner;
"(5) bear interest (exclusive of premium charges for insurance
and service charges, if any) at not to exceed 5 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 hereinafter provided
and to the service charge, if any) to amortization of the principal
of the mortgage; and
"(7) contain such terms and provisions with respect to insurance, repairs, alterations, payment of taxes, service charges,
default reserves, delinquency charges, foreclosure proceedings,
anticipation of maturity, 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 section, 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 1 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. Luch premium charges
98352'--1-PT.

-- 4

49
mEig1ility require-

*"s.

Premium charge.
Payment.

PUBLIC LAWS-CH. 94-APR. 20, 1950

Release from liability.

Evidence of eligibility.

Benefits to niortgagee. pOll foreclosure.

Post, p. 52.

Applicable provi-

sions.

52 Stat. 1:.
12 U. S. C. § 1710;

Sup. Il,

§ 1710 (f).

Paost, p. 51.

Title I Housing Insurance Fund.

Ante, p. 48.

Deposits or investments.

[64 STAT.

shall be payable by the mortgagee, either in cash or in debentures issued
by the Commissioner under this section 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 interest rate specified in
the mortgage. If the Commissioner finds, upon the presentation of
a mortgage for insurance and the tender of the initial premium charge
or charges so required, that the mortgage complies with the provisions
of this section, such mortgage may be accepted for insurance by
endorsement or otherwise as the Commissioner may prescribe. In the
event that the principal obligation of any mortgage accepted for insurance under this section is paid in full prior to the maturity date, the
Commissioner is further authorized, in his discretion, to require the
payment by the mortgagee of an adjusted premium charge in such
amount as the Commissioner determines to be equitable, but not in
excess of the aggregate amount of the premium charges that the mortgagee would otherwise have been required to pay if the mortgage had
continued to be insured until such maturity date; and in the event
that the principal obligation is paid in full as herein set forth, the
Commissioner is authorized to refund to the mortgagee for the account
of the mortgagor all, or such portion as he shall determine to be
equitable, of the current unearned premium charges theretofore paid.
"(d) The Commissioner may, at any time under such terms and
conditions as he may prescribe, consent to the release of the mortgagor
from his liability under the mortgage or the credit instrument secured
thereby, or consent to the release of parts of the mortgaged property
from the lien of the mortgage.
" (e) Any contract of insurance executed by the Commissioner under
this section shall be conclusive evidence of the eligibility of the mortgage for insurance, and the validity of any contract of insurance so
executed shall be incontestable in the hands of an approved mortgagee
from the date of the execution of such contract, except for fraud or
misrepresentation on the part of such approved mortgagee.
"(f) In any case in which the mortgagee under a mortgage insured
under this section shall have foreclosed and taken possession of the
mortgaged property in accordance with the regulations of, and within
a period to be determined by, the Commissioner, or shall, with the consent of the Commissioner, have otherwise acquired such property from
the mortgagor after default, the mortgagee shall be entitled to receive
the benefits of the insurance as provided in section 204 (a) of this Act
with respect to mortgages insured under section 203 (b) (2) (D) of
this Act.
"(g) Subsections (c), (d), (e), (f), (g), and (h) of section 204 of
this Act shall be applicable to mortgages insured under this section
except that all references therein to the Mutual Mortgage Insurance
Fund or the Fund shall be construed to refer to the Title I Housing
Insurance Fund, and all references therein to section 203 shall be construed to refer to this section: Provided, That debentures issued in
connection with mortgages insured under this section 8 shall have the
same tax exemption as debentures issued in connection with mortgages
insured under section 203 of this Act.
"(h) There is hereby created a Title I Housing Insurance Fund
which shall be used by the Commissioner as a revolving fund for carrying out the provisions of this section, and the Commissioner is hereby
directed to transfer immediately to such Fund the sum of $1,000,000
from the account in the Treasury of the United States established pursuant to the provisions of section 2 (f) of this title.
"(i) (1) Moneys in the Title I Housing Insurance Fund not needed
for the current operations of the Federal Housing Administration

64 STAT.]

81ST CONG., 2D SESS.-CH. 94-AIPR. 20, 1950

under this section shall be deposited with the Treasurer of the United
States to the credit of the Title I Housing Insurance Fund, or invested
in bonds or other obligations of, or in bonds or other obligations guaranteed as to principal and interest by, the United States. The Commissioner may, with the approval of the Secretary of the Treasury,
purchase in the open market debentures issued under the provisions of
this section. Such purchases shall be made at a price which will provide an investment yield of not less than the yield obtainable from
other investments authorized by this section. Debentures so purchased
shall be canceled and not reissued.
"(2) Premium charges, adjusted premium charges, and appraisal

and other fees received on account of the insurance of any mortgage
accepted for insurance under this section, the receipts derived from the
property covered by such mortgage and claims assigned to the Commissioner in connection therewith shall be credited to the Title I
Housing Insurance Fund. The principal of, and interest paid and to
be paid on debentures issued under this section, cash adjustments, and

Credits to and
charges against Fund.

expenses incurred in the handling, management, renovation, and dis-

posal of properties acquired under this section shall be charged to the
Title I Housing Insurance Fund."
AMENDMENTS OF TITLE II OF NATIONAL HOUSING ACT

SEC. 103. Section 203 (a) of said Act, as amended, is hereby amended
by striking out the proviso and inserting the following: "Provided,
That the aggregate amount of principal obligations of all mortgages
insured under this title and outstanding at any one time shall not exceed
$7,750,000,000, except that with the approval of the President such
aggregate amount may be increased at any time or times by additional
amounts aggregating not more than $1,250,000,000 upon a determination by the President, taking into account the general effect of any
such increase upon conditions in the building industry and upon the
national economy, that such increase is in the public interest."
SEC. 104. (a) Section 203 (b) (2) of said Act, as amended, is hereby
amended to read as follows:
"(2) Involve a principal obligation (including such initial service charges, appraisal, inspection, and other fees as the Commissioner shall approve) in an amount"(A) not to exceed $16,000 and not to exceed 80 per centum
of the appraised value (as of the date the mortgage is accepted
for insurance) of a property upon which there is located a
dwelling or dwellings designed principally for residential use
for not more than four families in the aggregate, irrespective
of whether such dwelling or dwellings have a party wall or
are otherwise physically connected with another dwelling or
dwellings: Provided, That the Commissioner may increase
such dollar amount limitation by not exceeding $4,500 for
each additional family dwelling unit in excess of two located
on such property, or

"((B) Repealed.)
"(C) not to exceed $9,450 and not to exceed the sum of (i)
95 per centum of $7,000 of the appraised value (as of the date
the mortgage is accepted for insurance) and (ii) 70 per
centum of such value in excess of $7,000 and not in excess of
$11,000, of a property, urban, suburban, or rural, upon which
there is located a dwelling designed principally for a singlefamily residence and which is approved for mortgage insurance prior to the beginning of construction: Provided, That
with respect to mortgages insured under this paragraph the
mortgagor shall be the owner and occupant of the property

48 Stat. 1248.
12U.S.C.,Sup.III,
§ 1709 (a).

Aggregate principal
obligations.

48 Stat. 1248.

()

12 U. S. C. § 1709
(2); Sup. III, § 17

(b) (2).
Eligibility

require-

ments.

Provision repealed.

52

Right of Commissioner to insure.
Ante, p. 51.

48 Stat. 1246.
12 U.S.C. §1701
and note; Sup. III,
§ 1701c et seq.
Ante, p. 51; pot,
pp. 53. 54, 57-59, 80, 81,

258, 259, 894.
62 Stat. 1273.
12 U. S. C., Sup. iII,
1710 (a).
Post, p. 54.
52 Stat. 17.
12 U. . C. § 1713 (b);
Sup. III, §1713 (b).
Rental projects for
family living.

PUBLIC LAWS-CH. 94--APR. 20, 1950

[64 STAT.

and shall have paid on account of the property at least 5 per
centum of the appraised value, or such larger amount as the
Commissioner may determine, in cash or its equivalent, or
"(D) not to exceed $6,650, except that the Commissioner
may by regulation increase this amount to not to exceed $7,600
in any geographical area where he finds that cost levels so
require, and not to exceed 95 per centum of the appraised value
(as of the date the mortgage is accepted for insurance) of a
property, urban, suburban, or rural, upon which there is
located a dwelling designed principally for a single-family
residence and which is approved for mortgage insurance prior
to the beginning of construction: Provided,That if the Commissioner finds that it is not feasible, within the aforesaid
dollar amount limitation, to construct dwellings containing
three or four bedrooms without sacrifice of sound standards of
construction, design, and livability, he may increase such
dollar amount limitation by not exceeding $950 for each additional bedroom (as defined by the Commissioner) in excess
of two contained in such dwelling if he finds that such dwelling meets sound standards of design and livability as a threebedroom unit or a four-bedroom unit, as the case may be: Provided further, That with respect to mortgages insured under
this paragraph the mortgagor shall be the owner and occupant of the property and shall have paid on account of the
property at least 5 per centum of the appraised value in cash
or its equivalent, or shall be the builder constructing the
dwelling in which case the principal obligation shall not
exceed $5,950 for a one-bedroom unit or a two-bedroom unit,
$6,800 for a three-bedroom unit, or $7,650 for a unit having
four or more bedrooms, except that the Commissioner may by
regulation increase each of the maximum dollar amount limitations contained in this proviso by not to exceed $850 in any
geographical area where he finds that cost levels so require,
and shall not exceed 85 per centum of the appraised value of
the property: And pro'idledfurther, That the Commissioner
may by regulation provide that the maximum dollar amount
limitations in this paragraph (D) shall be fixed at lesser
amounts where he finds, for any section or locality or for the
country as a whole or at any time, that it is feasible, within
such lesser dollar amount limitations, to construct dwellings
for families of lower income without sacrifice of sound standards of construction, design, and livability."
(b) The repeal of section 203 (b) (2) (B) of said Act, as provided
by subsection (a) of this section, shall not affect the right of the Commissioner to insure under said section any mortgage (1) for the
insurance of which application has been filed prior to the effective date
of this Act, or (2) with respect to a property covered by a mortgage
insured under any section of the National Housing Act, as amended.
SEC. 10. Section 204 (a) of said Act, as amended, is hereby amended
by inserting in the second proviso in the last sentence after the words
"of this Act." the following: "or under section 213 of this Act."
SEC. 106. Section 207 (b) of said Act, as amended, is hereby amended
by adding the following new paragraphs at the end thereof:
"Theinsurance of mortgages under this section is intended
facilitate particularly the production of rental accommodations, attoreasonable rents, of design and size suitable for family living. The Com-

missioner is, therefore, authorized and directed in the administration
of this section to take action, by regulation or otherwise, which will
direct the benefits of mortgage insurance hereunder primarily to those
projects which make adequate provision for families with children,

64 STAT.]

81ST CONG., 2D SESS.-CH. 94-APR. 20, 1950

and in which every effort has been made to achieve moderate rental
charges.
"Notwithstanding any other provisions of this section, no mortgage
shall be insured hereunder 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 certification to be filed with the Commissioner. Violation of any such certification shall be a misdemeanor
punishable by a fine of not to exceed $500."
SEC. 107. Section 207 (c) of said Act, as amended, is hereby
amended(1) by amending paragraph numbered (2) to read as follows:
"(2) not to exceed the sum of (i) 90 per centum of that portion
of the estimated value of the property or project (when the proposed improvements are completed) which does not exceed $7,000
per family unit and (ii) 60 per centum of such estimated value
in excess of $7,000 and not in excess of $10,000 per family unit:
Provided, That except with respect to a mortgage executed by
a mortgagor coming within the provisions of paragraph numbered (b) (1) of this section, such mortgage shall not exceed
the amount which the Commissioner estimates will be the cost
of the completed physical improvements on the property or
project exclusive of public utilities and streets and organization
and legal expenses: And provided frther, That the above limitations in this paragraph (2) shall not apply to mortgages on
housing in the Territory of Alaska, but such a mortgage may
involve a principal obligation in an amount not to exceed 90 per
centum of the amount which the Commissioner estimates will be
the replacement cost of the property or project when the proposed improvements are completed (the value of the property
or project as such term is used in this paragraph may include the
land, the proposed physical improvements, utilities within the
boundaries of the property or project, architect's fees, taxes, and
interest accruing during constrluction, and other miscellaneous charges incident to construction and approved by the
Commissioner) ; andl";
(2) by anending paragraph numbered (3) to read as follows:
"(3) not to exceed $8,100 per family unit (or $7,200 per family
unit if the number of rooms in such property or project does not
equal or exceed four and one-half per family unit) for such part
of such property or project as may be attributable to dwelling
use."; and
(3) by striking out of the first sentence of the last paragraphl
the words ", 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 insurance of the mortgage, such interest rate shall not exceed 4 per
centum per annum"
SEC. 108. Section 207 (d) of said Act, as amended, is hereby
amended by striking out of the proviso the words "one-half of"
SEC. 109. Section 207 (f) of said Act, as amended, is hereby
amended by striking out "section 210" wherever appearing therein
and inserting in lieu thereof "section 210 and section 213".
SEC. 110. Section 207 (g) of said Act, as amended, is hereby
amended(1) by striking out of clause (C) in the second sentence the
words "preservation of the property" and inserting in lieu thereof

53

Certification
oath.

under

f,2 Stat. 1273.
12 U.S.C., Sup. II.
5 1713 (c).

52 Stat. 18.
12 U.S. C. 1713 (d).
52 Stat. 18.
121 . SC. 1713(fb.

52 Stat. 19.
12U.S. C.. Sup. Ill,
1713 (g).

54

PUBLIC LAWS-CH. 94-APR. 20, 1950

52 Stat. 19.
12U. S.C., Sup. II,
1713 (h) and note.

52 Stat. 20.
12U. S.C. § 1713 (i).

A.*li1e,p.

i3.

C, SlLt.a

576.

12 U.S. CS..,Sup. III,
71.5 (a).
lnfra.

48 Stat. 1247.
12 U. S. C. §§ 17071715c; Sup. III, § 1709
et seq.

[64 STAT.

"preservation of the property and any mortgage insurance
premiums paid after default"; and
(2) by striking out the proviso in the last sentence thereof
inserting the following: "Provided, That the mortgagee in and
event of a default under the mortgage may, at its option andthe
in
accordance with regulations of, and in a period to be determined
by, the Commissioner, proceed to foreclose on and obtain possession of or otherwise acquire such property from the mortgagor
after default, and receive the benefits of the insurance as herein
provided, upon (1) the prompt conveyance to the Commissioner
of title to the property which meets the requirements of the rules
and regulations of the Commissioner in force at the time
mortgage was insured and which is evidenced in the manner the
prescribed by such rules and regulations, and (2) the assignment
to him of all claims of the mortgagee against the mortgagor or
others, arising out of the mortgage transaction or foreclosure
proceedings, except such claims that may have been released with
the consent of the Commissioner. Upon such conveyance and
assignment, the obligation of the mortgagee to pay the premium
charges for insurance shall cease and the mortgagee shall
be
entitled to receive the benefits of the insurance as provided
in this
subsection, except that in such event the 1 per centum deduction,
set out in (ii) hereof, shall not apply."
SEC. 111. Section 207 (h) of said Act, as amended,
is hereby
amended by striking out of the first sentence the words
missioner to any mortgagee upon the assignment of the"by the Comthe Commissioner" and inserting in lieu thereof "under mortgage to
this section".
SEC. 112. Section 207 (i) of said Act, as amended, is hereby
amended
by striking out the first sentence and inserting the
thereof: "Debentures issued under this section shallfollowing in lieu
the name of the Housing Insurance Fund as obligor, be executed in
shall
by the Commissioner, by either his written or engraved be signed
signature,
shall be negotiable, and shall be dated as of the date of default
as determined in subsection (g) of this section and shall bear
interest
from
such date."
SEc. 1 13. Section 212 (a) of said Act, as amended, is hereby
nmen(le(
by deleting the words "or under title VIII, a mortgage"
imme(liately
after the words "effective date of this section,"
by inserting in
lieu of the words deleted the following: "or underand
section 213 of this
title, or under title VII pursuant 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".
SEC. 114. Title II of said Act, as amended, is hereby
amended by
inserting a new section reading as follows:
'"COOPERATIVE HOUSING INSURANCE

Ante,
supra.

pp.

52,

53;

52 Stat. 16.
12.
S. C. §1713 (a).

"SEC. 213. (a) In addition to mortgages insured under
section 207
of this title, the Commissioner is authorized to insure
mortgages as
defined in section 207 (a) of this title (including advances
mortgages during construction), which cover property held byon such
"(1) a nonprofit cooperative ownership housing corporation
or
nonprofit cooperative ownershllip housing trust, the
occupancy of the dwellings of which is restricted to permanent
members of
such corporation or to beneficiaries of such trust; or
"(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;

64 STAT.]

81ST CONG.,

2

D SESS.-CH. 94-APR. 20, 1950

which corporations or trusts are regulated or restricted for the purposes and in the manner provided in paragraphs numbered (1) and
(2) of subsection (b) of section 207 of this title.
"(b) To be eligible for insurance under this section a mortgage on
any property or project of a corporation or trust of the character described in paragraph numbered (1) of subsection (a) of this section
shall involve a principal obligation in an amount"(1) not to exceed $5,000,000;
"(2) not to exceed $8,100 per family unit for such part of such
property or project as may be attributable to dwelling use, except
that if the Commissioner finds that the needs of individual members of the corporation or of individual beneficiaries of the trust
could more adequately be met by per room limitations, the mort-

55

Ante, p. 52.
Eligibility requirements.
Ante, p. 54.

gage may involve a principal obligation in an amount not to exceed

$1,800 per room for such part of such project to be occupied by
such members or beneficiaries; and not to exceed 90 per centum of
the amount which the Commissioner estimates will be the replacement cost of the property or project when the proposed improvements are completed: Provided, That (i) such maximum dollar
amount shall be increased by $4.50 per family unit or $1 per room,

as the case may be, for each 1 per centum of the membership of the
corporation or number of beneficiaries of the trust which consists
of veterans of World War II and such maximum ratio of loan to
cost shall be increased by one-twentieth of 1 per centum for each 1
per centum of the membership of the corporation or number of
beneficiaries of the trust which consists of veterans of World War
II, if evidence satisfactory to the Commissioner is furnished to
establish that the benefits of such increase will accrue to the members of the corporation or beneficiaries of the trust who are veterans of World War II in the form of the elimination of the down
payment which the corporation or trust would otherwise require
in order to supply the difference between the amount of the mort-

gage loan and the estimated replacement cost of the property or
project, or (ii) if at least 65 per centumr of the membership of the
corporation or number of beneficiaries of the trust consists of
veterans of World War II, the mortgage may involve a principal
obligation not to exceed $8,550 per family unit or $1,900 per room
as the case may be and not to exceed 95 per centum of the amount
which the Commissioner estimates as the replacement cost of the
property or project when the proposed improvements are
completed.
"(c) To be eligible for insurance under this section a mortgage on
any property or project of a corporation or trust of the character
described in paragraph numbered (2) of subsection (a) of this section
shall involve a principal obligation in an amount not to exceed $5,000,000 and not to exceed the greater of the following amounts:
"(1) A sum computed on the basis of a separate mortgage for
each single family dwelling (irrespective of whether such dwelling has a party wall or is otherwise physically connected with
another dwelling or dwellings) comprising the property or project, equal to the total of each of the maximum principal obligations of such mortgages which would meet the requirements of
paragraph (A), paragraph (C), or paragraph (D) of section 203
(b) (2) of this Act if the mortgagor were the owner and occupant
who had made any required payment on account of the property
prescribed in such paragraph.
"(2) A sum equal to the maximum amount which does not
exceed either of the limitations on the amount of the principal

Ante, p. 54.

Ante, pp. 51, 52.

56

PUBLIC LAWS-CH. 94-APR. 20, 1950

Ante, p. 55.
Mortgage
sions.

provi-

Arite, p. 54.

4 nte, p. 54.

Applicable provisions.
52 Stat. 16.
12 t. S. C. § 1713;
Sup. III, § 1713.
Ante, pp. 53, 54.

Supra.

52 Stat. 12.
12 U. . C. § 1710;
Sup. III, § 1710.
Ante, p. 52.

Ante, p. 54.

Family units; single
person occupancy.

45 Stat. 1247.
12 U. S. C. §§ 1707171.5c; Sup. III, J 1719y
el seq.

obligation of the mortgage prescribed by paragraph numbered
(2) of subsection (b) of this section.
"(d) Any mortgage insured under this section shall provide for
complete amortization by periodic payments within such terms as the
Commissioner may prescribe but not to exceed forty years from the
beginning of amortization of the mortgage, and shall bear interest
(exclusive of premium charges for insurance) at not to exceed 4 per
centum per annum on the amount of the principal obligation outstanding at any time. The Commissioner may consent to the release of a
part or parts of the mortgaged property from the lien of the mortgage
upon such terms and conditions as he may prescribe and the mortgage
may provide for such release, and a mortgage on any project of a corporation or trust of the character described in paragraph numbered
(2) of subsection (a) of this section may provide that, at any time after
the completion of the construction of the project, such mortgage may
be replaced, in whole or in part, by individual mortgages covering each
individual dwelling in the project in amounts not to exceed the unpaid
balance of the blanket mortgage allocable to the individual property.
Each such individual mortgage may be insured under this section.
Property covered by a mortgage, insured under this section, on a property or project of a corporation or trust of the character described in
paragraph numbered (1) of subsection (a) of this section may include
such commercial and community facilities as the Commissioner deems
adequate to serve the occupants.
"(e) The provisions of subsections (d), (e), (g), (h), (i), (j), (k),
(1), (m), (n), and (p) of section 207 of this title shall be applicable
to mortgages insured under this section except individual mortgages
insured pursuant to subsection (d) of this section covering the individual dwellings in the project, and as to such individual mortgages
the provisions of subsections (a), (c), (d), (e), (f), (g), and (h) of
section 204 shall be applicable.
"(f) The Commissioner is authorized, with respect to mortgages
insured or to be insured under this section, to furnish technical advice
and assistance in the organization of corporations or trusts of the character described in subsection (a) of this section and in the planning,
development, construction, and operation of their housing projects.
In the performance of, and with respect to. the functions, powers, and
lduties vested in him by this section, the Commissioner, notwithstanding the provisions of any other law, shall appoint an Assistant Commissioner to administer the provisions of this section under the direction and supervision of the Commissioner.
"(g) Nothing in this Act shall be construed to prevent the insurance
of a mortgage under this section covering a housing project designed
for occupancy by single persons, and dwelling units in such a project
shall constitute family units within the meaning of this section."
SEC. 115. The National Housing Act, as amended. is hereby amended
by adding the following section under title II thereof after section
214:
"ISSUANCE

A.nte, p. 48.
48 Stat. 1247: 55 Stat.
55: 63 Stat. 571.
12 U. S. C. § 1707171Sc, 1736-1743; Sup.
III, §§ 1709 et seq., 1736
et seq., 1748-1748g.

Ante, pp. 51-54;post,
pp. 57, 58, 97, 259.

[64 STAT.

OF COMMITMENTS

"SEC. 215. The Commissioner is hereby authorized to process applications and issue commitments with respect to insurance of mortgages
under section 8 of title I, title II, title VI, or title VIII of this Act,
even though the permanent mortgage financing may not be insured
under this Act, and in the event the mortgage is not so insured the
Commissioner is authorized to charge an additional application fee
determined by him to be reasonable. The Commissioner is authorized
to make such rules and regulations as may be necessary to carry out
the provisions of this section."

04 STAT.]

S1ST CONG., 2D SESS.-CH. 94-AIPR. 20. 1950

t

AMENI)MEN-TS OF TITLE III OF N'ATION-AL IIOUSING ACT

SEC. 116. Section 301 (a)
amended-

of said Act, as amended, is hereby

(1) by striking out of paragraph (1) the words "title VIII of"
and inserting in lieu thereof the words "title VIII, or section 8 of
title I of";
(2) by striking out of paragraph (1) the words "Provided,
lo tccer," and inserting in lieu thereof the following: "Provided,
That no deposit or fee required or charged by the Association for
the purchase of a mortgage hereunder shall exceed 1 per centum
of the original principal obligation of such mortgage: And provided further,";
(3) by striking out the proviso at the end of paragraph (1)
(E) and inserting the following: ": Provided, That this clause
(2) shall not apply to (nor shall any terms therein include) any
mortgage which is (i) guaranteed after October 25, 1949, under
section 501, or guaranteed after the effective date of the Housing
Act of 1950 under section 502 of the Servicemen's Readjustment
Act of 1944, as amended, and made for the construction or purchase of a family dwelling or dwellings in an original principal
amount or amounts which does not exceed $10,000 per dwelling
unit, or (ii) insured under section 803 of this Act; and";
(4) by amending paragraph (1) (F) to read: "(F) no loan
guaranteed under section 501 or section 502 of the Servicemen's
Readjustment Act of 1944, as amended, which is made to finance
all or part of the purchase price or construction cost of a dwelling,
shall be purchased by the Association (except pursuant to a commitment made or issued prior to the effective date of this paragraph) unless the Administrator of Veterans' Affairs certifies
that such dwelling conforms with minimum construction requirements prescribed by him: Provided. That this clause (4) shall
become effective ninety days after the date of enactment of the
Housing Act of 1950."; and
(5) by adding the following new subparagraph at the endl
thereof: "(G) The Association after the effective date of this
subparagraph may contract to purchase only those eligible mort-

gages which are guaranteed or insured at the time of the contract."
SEC. 117. Section 302 of the National Housing Act, as amended, is
hereby amended by striking out "$2.500,000,000" and inserting in lieu

62 Stat. 1207;63 Sta.
576, 906.

12 U. S.C., Sup. III,
1716 (a).

58 Stat. 292.
38 U. S. C. § 694a.

Post, p. 75.

58 Stat. 292.
38 U. S. C. § 694b.

Post, p. 75.

63 Stat. 571.

12 U. S. C., Sup. III,
1748b.

Post, p. 75.

I'urchas,

r sI ric-

t ion.

63 Stat. 9005.
12 1. S. C., Sup. III,
§ 1717.

thereof "$2,750,000,000".

SEC. 118. Section 305 of said Act, as amended. is hereby amended
by adding the words "or credit, or otherwise dispose of" immediately
after the word "cash".

4s Stat. 1254.
12 '. S. C., Sup. III,
§1720.

AMENI)MENTS OF TITLE VI OF NATIONAL 1tOUSING ACT

SEC. 119. Section 603 (a) of the National Housing Act. as amended.
is hereby amended by adding the following new paragraphs at the end
thereof:
"Notwithstanding the first proviso 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

55, S;lat. 56.
12 . S. C., Sup. III.
§ 173S (a).

Mortgage insurance.
61 Stat. 193.

12 U.S. C., Sup. III,
§ 1744.

Post, p. 58.

56 Stat. .l3.
12 I'. S. '. § 1743;
Sup. 111, i 1743.

58

56 Stat. 303.
12 U. S. C. § 1743;
Sup. III, § 1743.
61 Stat. 777.
12 U. S. C., Sup. III,
§1745.

Further authorization.

54 Stat. tl1.
42 . S. C. §§ 15011505; Sup. 111,
15011505
t6lots.

62 Stat. 1271.
12 U. S.C., Sup. II ,
1746.

PUBLIC LAWS-CH. 94-APR. 20, 1950

[64 STAT.

received in any field office of the Federal Housing Administration on
or before March 1, 1950, and for such purpose the aggregrate amount
of principal obligations authorized to be insured under section 608
of this title is increased by not to exceed $500,000,000."
SEC. 120. Section 610 of said Act, as amended, is hereby amended(1) by inserting in paragraph (4) of the first sentence, immediately after the words "section 603 (b) (2)", the words "or section
603 (b) (5)";
(2) by striking out in the proviso the word "and" after the
words "date of insurance" and by striking out the period at the end
of the proviso and inserting a comma and the following: "and (4)
bear interest (exclusive of premium charges) at not to exceed 5 per
centum per annum on the amount of the principal obligation outstanding at any time if such mortgage covers property on which
there is located a dwelling designed principally for residential use
for not more than four families in the aggregate, irrespective of
whether such dwelling or dwellings have a party wall or are otherwise physically connected with another dwelling or dwellings, or
bear interest at not to exceed 41/ per centum per annum on the
amount of the principal obligation outstanding at any time if such
mortgage covers property upon which there is located a dwelling
or dwellings designed principally for residential use for more than
four families.";
(3) by inserting before the last paragraph thereof the following
new paragraph:
"The Commissioner is further authorized to insure or to make
commitments to insure in accordance with the provisions of this
section any mortgage executed in connection with the sale by the
Public Housing Administration, or by any public housing agency
with the approval of the said Administration, of any housing
(including any property acquired, held, or constructed in connection with such housing or to serve the inhabitants thereof) owned
or financially assistedpursuant to the provisions of Public Law
671, Seventy-sixth Congress."; and
(4) by striking out of the last sentence thereof the words "which
is the security for a mortgage insured pursuant to the provisions
of this section." and inserting the words 'of the character described
in this section.".
SEC. 121. Section 611 of said Act, as amended, is hereby amended-

(1) by striking out in clause (A) of subsection (b) (3) the
figure "80" and inserting in lieu thereof the figure "85", and by
amending clause (B) of said subsection to read as follows: "not to
exceed a sum computed on the individual dwellings comprising the
total project as follows: $5,950 or 85 per centum of the valuation,
whichever is the lower amount, with respect to each single-family
dwelling: Provided,That if the Commissioner finds that it is not
feasible, within the dollar amount limitation in clause (B) on the
principal obligation of the mortgage, to construct dwellings containing three or four bedrooms without sacrifice of sound standards of construction, design, and livability, he may increase such
dollar amount limitation by not exceeding $850 for each additional
bedroom (as defined by the Commissioner) in excess of two contained in each such dwelling if he finds that such dwelling meets
sound standards of design and livability as a three-bedroom unit
or a four-bedroom unit, as the case may be, but the amount
computed under clause (B) for each such dwelling shall not
exceed, in any event, $7,650.";
(2) by striking the period at the end of subsection (b) (4) and
inserting the following: ", and the mortgage may provide that,

64 STAT.]

81ST CONG., 2D SESS.-CH. 94-APR. 20, 1950

upon the completion of the construction of the project, such mortgage may be replaced by individual mortgages covering each
individual dwelling in the project. Each such individual mortgage may be insured under this section with the mortgagor being
either the builder who constructed the dwellings or the owner and
occupant of the dwelling at the time, and where the mortgagor
is the owner and occupant, may involve a principal obligation in
such amount and have such maturity and interest rate as a mortgage eligible for insurance under section 203 (b) (2) (D) of this
Act."; and
(3) by striking out the period at the end of subsection (d) and
inserting the following: i covering a project described in subsection (b) of this section, and the provisions of subsections (a), (b),
(c), (d), (e), (f), and (h) of section 604 shall be applicable to the
individual mortgages insured pursuant to subsection (b) (4) of
this section covering individual dwellings in the project.".
SEC. 122. The National Housing Act, as amended, is hereby
amended by inserting a period after the word "Senate" in the first
sentence of section 1 and striking out the balance of said first sentence,
and by striking out the word "Administrator" wherever it appears in
said Act, as amended, and substituting in lieu thereof the word "Com-

59

Ante, p. 52.

55 Stat. 58.
12 U.S. C. § 1739;
Sup. III, § 1739.
48 Stat. 1246.
12 U. . C. § 1701
and note; Sup. III,
§ 1701c et seq.
Ante, pp. 51-54, 57,
58; post, pp. 80, 81, 258,
259, 894.

missioner".

TITLE II-DISPOSAL OF WAR AND VETERANS' HOUSING
SEC. 201. Public Law 796, Eightieth Congress, approved June 28,
1948, is hereby amended by adding at the end thereof the following
new section:
"SEC. 7. The Act entitled 'An Act to expedite the provision of housing in connection with national defense, and for other purposes', approved October 14, 1940, as amended, is hereby amended by adding at
the end thereof the following new title:

62 Stat. 1062.
42U. S.C., Sup.11,
§§ 1506,1524,1553,1575
and note.
54 Stat. 1125.
42 U. 8. C. ch. 9
note; 8S 1521-1574;
Sup. III, 8 1521 et seq.
Post, pp. 72, 73.

"'TITLE VI
"

IIOUSING DISPOSITION

"'SEC. 601. (a) Upon the filing of a request therefor as herein prescribed, the Administrator shall (subject to the provisions of this section) relinquish and transfer, without monetary consideration, to any
State or political subdivision thereof, local housing authority, local
public agency, nonprofit organization, or educational institution, all
contractual rights (including the right to revenues and other proceeds)
and all property right, title, and interest of the United States in and

Transfer of rights in
temporary housing
and housing materials.

with respect to (1) any temporary housing located on land owned or

controlled by such transferee and in which the United States has no
leasehold or other property interest, and (2) housing materials which
have been made available to the transferee by the Administrator pursuant to section 502 of this Act.
" ' (b) Upon the filing of a request therefor as herein prescribed, the
Administrator may (subject to the provisions of this section) relinquish and transfer, without monetary consideration other than that
specifically required by this subsection, to any State, county, municipality, or local housing authority, or to any educational institution
where the housing involved is being operated for its student veterans
or where the land underlying the housing is in the ownership of two
or more educational institutions, or to any other local public agency
or nonprofit organization where the housing involved has been made
available by the United States to such agency or organization pursuant to section 502 of this Act or where the Administrator determines

59 Stat. 260.
42 U. S. C. § 1572:
Sui. III, § 1572.
Post, p. 73.

Snpra,

60

Po.t, p. 61.

Request for transfer.
Ante, p. 59; post,
p. 63.

PUBLIC LAWS-CH. 94-APR. 20, 1950

F64 STAT.

that the housing involved is urgently needed by parents of persons who
served in the armed forces during World War II and died of serviceconnected illness or injury (in which case the preferences in section
601 (d) (1) shall not apply), all right, title, and interest of the United
States in and with respect to any temporary housing (excluding commercial facilities which the Administrator determines are suitable for
separate disposal and community facilities which the Administrator
determines should be disposed of separately) located on land in which
the United States has a property interest through ownership, lease, or
otherwise, under the following conditions:
"'(1) If the land is owned by the United States and under the
jurisdiction of the Administrator, the transferee shall have purchased such land from the Administrator at a price substantially
equal to the cost to the United States of the land (including survey,
title examination, and other similar expenses incident to acquisition but excluding the cost or value of all improvements thereto
by the United States other than extraordinary fill), or, if the
Administrator determines the amount of such cost to be nominal
or not readily ascertainable, at a price which the Administrator
determines to be fair and reasonable. Payment for such land shall
be made in full at the time of sale or in not more than ten equal
annual installments (the first of which shall be paid within one
year from the date of conveyance) all of which shall be secured as
determined by the Administrator with interest from the date
of conveyance at the going Federal rate of interest at the time of
conveyance.
" '(2) If the land is owned by the United States and not under
the jurisdiction of the Administrator, the transferee shall have
purchased such land from the Federal agency having jurisdiction
thereof. The Federal agency having jurisdiction of any such land
is hereby authorized to sell and convey the same to any such transferee on the terms authorized herein except that the determinations required to be made by the Administrator shall be made by
the agency having jurisdiction of such land.
"'(3) If the IUnited States does not own the land but has an
interest therein through lease or otherwise, the tra nsferee shall (i)
where it is not the landowner, obtain the right to possession of such
land for a term satisfactory to the Adminiistrator, (ii) obtain fron
the landowner a release (or, if the transferee is the landowner,
furnish a release) of the United States from all liability in connection therewith, including any liability for removal of structures or
restoration of the land, except for any rental or use payment due at
the time of transfer, and (iii) reimburse the United States for the
proportionate amount of any payments made by the United States
for the right to use the land and for taxes or payments in lieu of
taxes for any period extending beyond the time of the transfer, and
(iv) if the interest of the United States is not under the jurisdiction of the Administrator, the transferee shall obtain a transfer
or release of the interest of the United States from the Federal
agency having jurisdiction, which transfers and releases by such
Federal agencies are hereby authorized on such terms as the head
of the respective agency determines to be in the public interest.
"'(c) The ing of a request under subsection (a), (b), (g),or (h)
of this section must be made on or before December 31, 1950. unless the
Administrator shall, in any specific case, authorize the filing of a
request subsequent to such date but on or before June 30, 1951, and, in
any such case, the Administrator may extend, for a specified period
not beyond Iecember 31,1951, the time hereinafter prescribed for complying with all conditions to the relinquishment or transfer. Such

64 STAT.]

81ST CONG.,

2

61

D SESS.-CH. 94-APR. 20, 1950

request shall be in the form of a resolution adopted by the governing
body of the applicant, except that, in the case of a State, such request
may be in the form of a written request from the governor, and, in the
case of a local housing authority (other than the Alaska Housing
Authority), or a local public agency organized specifically and solely
for the purpose of slum clearance and community redevelopment, shall
be accompanied by a resolution of the governing body of the municipality or county approving the request for transfer. Such request
shall be accompanied by either (1) a final opinion of the chief law
officer or legal counsel of the applicant to the effect that it has legal
authority to make the request, to accept the transfer of and operate
any property involved, and to perform its obligations under this title,
or (2) a preliminary opinion of such officer or counsel concerning the
legal authority of the applicant with respect to the proposed relinquishment or transfer including a statement of the reasons for not furnishing the final opinion with the request and the time required to
furnish such opinion. If a request has been submitted as herein provided, the applicant shall comply with all conditions to the relinquishment or transfer (including the furnishing of the final legal opinion)
on or before June 30, 1951: Provided, That, in any case where the
applicant is unable to comply with all conditions to the relinquishment or transfer because of the need for the enactment of State legislation or charter amendment, such date shall be June 30, 1952, and
may be extended by the Administrator, upon request in a particular
case, to December 31, 1952. The Administrator shall act as promptly
as practicable on any request which complies with the provisions of
this section and is supported as herein required, and shall as promptly
as practicable arrange for the making of any survey or the performance of other work necessary to the transfer: Provided, That, notwithstanding the provisions of this section, the Administrator may
at any time, except with respect to housing for which a request has
been or may be submitted under subsection (a) of this section, remove,
dispose of, or retain any temporary housing, or part thereof, in
accordance with any provision of this Act.
"'(d) No relinquishment or transfer with respect to temporary
housing shall be made under this section unless the transferee represents inl its request thlerefor that it proposes, to the extent )erlitted
by law:
"'(1) As among eligible applicants for occupancy in dwellings
of given sizes and at specified rents, to extend the following preferences in the selection of tenants:
"'First, to families which are to be displaced by any low-rent
housing project or by any public slum-clearance or redevelopment
project initiated after January 1. 1947, or which were so displaced
within three years prior to making application for admission to
such housing; and as among such families first preference shall be
given to families of disabled veterans whose disability has been
determined by the Veterans' Administration to be service-connected, and second preference shall be given to families of deceased
veterans and servicemen whose death has been determined by the
Veterans' Administration to be service-connected, and third preference shall be given to families of other veterans and servicemen:
"'Second, to families of other veterans and servicemen; and
as among such families first preference shall be given to families
of disabled veterans whose disability has been determined by the
Veterans' Administration to be service-connected, and second
preference shall be given to families of deceased veterans and servicemen whose death has been determined by the Veterans' Administration to be service-connected: Provided, That if the transferee

Power of disposal or
retention of temporary housing.
Ante, p. 59.

Restrictions

on re-

1 i n (I u ish ments and

t l.nlsfrs.

Preferences in selection of tenants.

62

Ante, p. 69.

Waiver of requirements.
Post, pp. 72, 73.

Accrual of proceeds
to U. S.

PUBLIC LAWS-CH. 94-APR. 20, 1950

[64

STAT.

is an educational institution it may limit such preferences to
student veterans and servicemen, and their families, and may, in
lieu of such preferences, make available to veterans or servicemen
and their families accommodations in any housing of the institution equal in number to the accommodations relinquished or
transferred to it: And provided further, That, notwithstanding
such preferences, if the transferee is a State, political subdivision,
local housing authority, or local public agency, it will, in filling
vacancies in housing transferred under subsection 601 (b) hereof,
give such preferences to military personnel and persons engaged
in national defense or mobilization activities as the Secretary
of Defense or his designee prescribes to such transferee.
"'(2) Not to dispose of any right, title, or interest in the property (by sale, transfer, grant, exchange, mortgage, lease, release,
termination of the leasehold, or any other relinquishment of interest) either (i) for housing use on the present site or on any other
site except to a State or political subdivision thereof, local housing
authority, a local public agency, or an educational or eleemosynary institution, or (ii) for any other use unless the governing
body of the municipality or county shall have adopted a resolution determining that, on the basis of local need and acceptability,
the structures involved are satisfactory for such use and need not
be removed: Provided,That this representation will not apply to
any disposal through demolition for salvage, lease to tenants for
residential occupancy, or lease of nondwelling facilities for the
continuance of a use existing on the date of transfer, or where such
disposal is the result of a bona fide foreclosure or other proceeding
to enforce rights given as security for a loan to pay for land under
this section: And provided further, That nothing contained in
this paragraph shall be construed as applicable to the disposition
of any land or interest therein after the removal of the structures
therefrom.
"'(3) To manage and operate the property involved in accordance with sound business practices, including the establishment
of adequate reserves.
"'(4) Whenever the structures involved, or a substantial
portion thereof, are terminated for housing use and are not to be
used for a specific nonhousing use, to promptly demolish such
structures terminated for housing use and clear the site thereof.
"'(e) Any relinquishment or transfer by the Administrator under
this section shall constitute a waiver of the requirements of section 313
of this Act (and any contractual obligations pursuant thereto) for
removing the housing involved if the request for such relinquishment
or transfer was made, as authorized herein, by the governing body of
the municipality or county, or by the local housing authority, or, in
other cases, if, prior to or within six months after the date of the relinquishment or transfer, there is filed with the Administrator a resolution
of such governing body specifically approving (1) the unconditional
waiver of such requirements or (2) the waiver of such requirements
subject to conditions specified in the resolution. Any such conditions
shall not affect the waiver of removal requirements hereunder, and the
United States shall assume no responsibility for compliance therewith.
"'(f) In any relinquishment or transfer under this section, the net
revenues and other proceeds from such housing to which the United
States is entitled on the basis of periodic settlements shall continue to
accrue to the United States until the end of the month in which the
relinquishment or transfer is made, and the obligation of the transferee to pay such accrued amounts shall not be affected by this section.
The Administrator may charge to the transferee the cost to the United

64 STAT.]

81ST CONG., 2D SESS.-CH. 94-APR. 20, 1950

States of any survey, title information, or other item incidental to the
transfer.
" ' (g) Upon the filing of a request therefor as herein prescribed, the
Administrator may (subject to the provisions of this section) relinquish and transfer, without monetary consideration other than payment for land involved as specifically required by subsection (b)
hereof, to any local public agency organized specifically and solely for
the purpose of slum clearance and community redevelopment in a
municipality in which the total number of persons, who on December
31, 1948, were living in temporary family accommodations provided
by the United States or any agency thereof since September 8, 1939,
exceeded the total population of such municipality as shown by the
1940 census, all right, title, and interest of the United States in and
with respect to any temporary housing located in such municipality
under the conditions set forth in said subsection (b). Notwithstanding the provisions of subsection (b) of this section, the Administrator
shall not relinquish or transfer any right, title, or interest of the
United States in and with respect to any temporary housing situated
in such a municipality except as set forth in this subsection.
"'(h) Upon the filing of a request therefor as herein prescribed,
the Administrator may (subject to the provisions of this section except
the provisions of subsection (d) hereof) relinquish and transfer to
any municipality, without monetary consideration other than payment for the land involved as specifically required by subsection (b)
hereof, all right, title, and interest of the United States in and with
respect to unoccupied temporary housing of masonry construction
located in such municipality: Provided, That such housing has been
wholly or partially stripped of trim and fixtures prior to the enactment of this title and the municipality adopts a resolution determining that the structures, with proposed improvements, will be suitable
for long-term housing use.
"'SEC. 602. The requirements of section 313 of this Act shall not
apply to any temporary housing"'(a) for which such requirements have been waived pursuant
to section 505 or section 601 of this Act;
"'(b) transferred by the Administrator to the jurisdiction of
the Department of the Army, the Navy, or the Air Force pursuant to section 4 of this Act;
"' (c) disposed of by the Administrator under title I or title III
of this Act for long-term housing or nonhousing use without any
requirement for removal where the governing body of the municipality or county has adopted a resolution determining that, on the
basis of local need and acceptability, the structures involved are
(1) satisfactory for such long-term use or (2) satisfactory for suclh
long-term use if conditions prescribed in such resolution, affecting
the physical characteristics of the project, are met: Provided.
That any such conditions shall not affect the disposal of any
temporary housing hereunder, and the United States shall assume
no responsibility for compliance with such conditions: And provided fwrther, That any housing disposed of for housing use in
accordance with this subsection (c) shall thereafter be deemed to
be housing accommodations, the construction of which was completed after June 30, 1947, within the meaning of section 4 of the
Housing and Rent Act of 1947, as amended, relating to preference
or priority to veterans of World War II or their families; or
"'(d) disposed of or relinquished by the Administrator prior
to the enactment of this section subject to such requirements or
contractual obligations pursuant thereto, where the governing
body of the municipality or county on or before December 31,

63

Transfer of rights to
certain local public
agencies.
Ante, p. 59.

Transfer of rights to
unoccupied temporary housing.
Ante, p. 61.
Ante, p. 59.

Nonapplibhility.
Post, pp. 72, 73.

fi2 Stlat. IX0i.

42 UT. . ('., Supll.111,
§ 1575.
Ante, p. 59; post,
p. 73.

5RStat. 12.
421 J.. C., Sup. II,
§ 1524.
55 Stat. 361, 3c3.
42 tr. S. . § 15211524, 1541-1.,3; Sup.
III, § 1521 et seq., 1541
et seq.
Poat, pp. 72, 73.

61 Stat. 195.
50 U. S. C., Sup. Iu,
app. § 1884.
Post, p. 255.

64

Demountable housi'Ig.

Temporary housing
remaining under jurisdiction of Administrator.

Ante, p. 69.

Ante, p. 63.
Ante, p. 69.

Ante, p. 61.

61 Stat. 193.
50 U. S. C., Sup. III,
app. § 1881 notes.
Post, p. 256.

PUBLIC LAWS-CH. 94-APR. 20, 1950

[64 STAT.

1950, adopts a resolution as provided in (c) above; and any contract obligations to the Federal Government for the removal of
such housing shall be relinquished upon the filing of such a
resolution with the Administrator.
"'SEC. 603. With respect to any housing classified, prior to the
enactment of this section, by the Administrator as demountable, the
Administrator shall, as soon as practicable but not later in any event
than December 31, 1950, and after consultation with the communities
affected, redetermine (taking into consideration local standards and
conditions) whether such housing is of a temporary or permanent
character, and after such redetermination shall dispose of such housing
in accordance with the provisions of this title.
"'SEC. 604. With respect to temporary housing remaining under the
jurisdiction of the Administrator on land under his control, the
Administrator shall (1) permit vacancies, occurring or continuing
after July 1, 1951, to be filled only by transfer of tenants of other
accommodations in the same locality being removed as required by this
Act; (2) notify, on or before March 31, 1952, all tenants to vacate the
premises prior to July 1, 1952; (3) promptly after July 1, 1952, cause
actions to be instituted to evict any tenants still remaining; and (4)
remove (by demolition or otherwise) all dwelling structures as soon
as practicable after they become vacant: Provided, That in any case
where a request for relinquishment or transfer has been filed pursuant
to section 601 hereof and where under the provisions of section 601 (c)
hereof the date for compliance with all conditions to the relinquishment or transfer shall have been extended, each of the foregoing dates
shall be extended for a period of time equal to the period of the extension under section 601 (c): And provided further, That nothing
heretofore in this section shall apply (1) to any temporary housing in
any municipality in which the total number of persons, who on December 31, 1948, were living in temporary family accommodations provided by the United States or any agency thereof since September 8,
1939, exceeds 30 per centull of the total population of such municipality as shown by the 1940 census, nor (2) to any temporary housing
as to which the local governing body has adol)ted a resolution as
provided in section 602 (c) hereof, nor (3) to any temporary housing
for which a request has been submitted in accordance with section (i6l
(b) of this Act, but which has not been relinquished or transferred
solely because the apiplicant has been unable to obtain from the landowner the right to possession of the land on reasonable terms as
determined by the Administrator: Provided, That, in filling vacancies
in such housing, the preferences set forth in section 601 (d) (1) shall
be applicable and that families within such preference classes shall be
eligible for admission to such housing, nor (4) to any temporary
housing in which accommodations have been reserved, prior to the
enactment of this section, for veterans attending an educational institution if (i) such institution certifies that the accommodations are
urgently needed for such veterans and submits facts showing, to the
satisfaction of the Administrator, that all reasonable efforts have
been made by the institution to find other accommodations for them
and (ii) such institution agrees to reimburse the Housing and Home
Finance Agency for any financial loss to the Agency in the operation
of the accommodations after June 30, 1951: And provided further.
That with respect to any temporary housing under the jurisdiction of
the Administrator the maximum rental shall be that in effect on April
1, 1949, unless the Housing Expediter shall approve a petition for an
increase in accordance with the fair net operating income formula in
effect from time to time under the Housing and Rent Act of 1947, as
amended, on grounds of hardship to the landlord: Provided, That, if

64 STAT.]

65

81ST CONG., 2D SESS.-CH. 94-APR. 20, 1950

such housing is not in an area where rent control is in effect at the time
pursuant to that Act, an increase may be granted by the Administrator
on the basis of such formula.
"'SEC. 605. (a) The Administrator may continue by lease or condemnation any interest less than a fee simple in lands heretofore
acquired by the Administrator for national defense or war housing
or for veterans' housing (whether of permanent or temporary character), or held by any Federal agency in connection therewith, and
may acquire, by purchase or condemnation, a fee simple title to or
lesser interest in any such lands if the Administrator determines that
the acquisition of such fee simple or lesser interest is necessary to protect the Government's investment or to maintain the improvements
constructed thereon, or that the cost of fulfilling the Government's
obligation to restore the property to its original condition would
equal or exceed the cost of acquiring the title thereto.
"'(b) In any case in which the Administrator holds, on or after
April 1, 1950, an interest in land acquired by the Federal Government
for national defense, war housing, or veterans' housing and where
(1) the term of such interest (as prescribed in the taking or in the
lease or other instruments) is for the "duration of the emergency"
or "duration of the war", or "duration of the emergency" or "duration of the war" plus a specific period thereafter, or for some similarly
prescribed term, and (2) the rental, award, or other consideration
which the Federal Government is obligated to pay or furnish for such
interest gives the owner of the land less than an annual return, after
payment of real estate taxes, of 6 per centum of the lowest value
placed on such land by an independent appraiser, hired by the Government to make such appraisal based on the value of the land before
the acquisition of the Government's interest therein, the Administrator
is authorized, upon request of the owner of the land and, notwithstanding any existing contractual or other rights or obligations, to
increase the amount of future payments for such interest in order to
give the owner of the land a return for the Government's use thereof
not exceeding the 6 per centum annual return described in (2) of
this subsection: Provided, That this subsection shall not affect any
payment heretofore made or any future payment accepted by an
obligee, nor shall this subsection limit the consideration which may
be paid for the use of any land beyond the existing term of the
Government's interest therein.
"'(c) Notwithstanding any other provisions of law unless hereafter
enacted expressly in limitation hereof, moneys shall be deposited in
the reserve account established pursuant to subsection (a) and subsection (b) of section 303 of this Act (which account is hereby continued subject to the limitation as to amount specified in subsection
(c) thereof) and all moneys deposited in such reserve account shall
be and remain available for any or all of the purposes specified in
said subsections (a) or (b) or in this section 605 without regard to
the time prescribed in subsection (c) of section 303 with respect to
covering moneys in such account into miscellaneous receipts. Moneys
in such reserve accounts shall also be available for the payment of
necessary expenses (which shall be considered nonadministrative
expenses) in connection with administering (1) transfers pursuant to
section 601, (2) redeterminations of the temporary or permanent
character of demountable housing pursuant to section 603, (3) changes
in land tenure and revisions in the consideration payable to landowners pursuant to subsection 605 (a) and 605 (b), and (4) transfers
of permanent war housing for low-rent use pursuant to section 606.
Moneys in such reserve account shall also be available for the purpose
of making improvements to, or alterations of, any permanent housing
98352 *-51-PT.I--

Lands acquired for
national defense, war
housing, etc.

Authority to Increase payments.

Deposits; availability of moueys.

fi Stat. 9.
42 U. S. C. § 1543;
Sup. III, § 1543.
Post, p. 73.

.Ante, p. 59.
Ante, p. 64.

Post, p. 6&

66

PUBLIC LAWS-CH. 94-APR. 20, 1950

Conveyance of certain housing projects.

[64 STAT.

or part thereof if (1) the dwelling structures therein are designed for
occupancy by not more than four families and are to be sold separately
and (2) such improvement or alteration is requested by the local
governing body as a condition to the acceptance of the dedication of
streets or utilities or is necessary for compliance with local law or
regulation relating to the continued operation or occupancy of the
housing by a purchaser.
"'SEC. 606. (a) The Administrator is hereby specifically authorized to convey the following housing projects to the following local
public housing agencies respectively, if"'(1) on or before December 31, 1950, (i) the conveyance is

requested by the governing body of the municipality or county and
(ii) the public housing agency has demonstrated to the satisfaction of the Administrator that there is a need for low-rent housing (as such term is defined in the United States Housing Act of
1937) within the area of operation of such public housing agency
which is not being met by private enterprise;
" '(2) the Administrator determines that the project requested
will meet such need in whole or in part, and is suitable for low-rent
housing use; and
"'(3) on or before June 30, 1951, the governing body of the
municipality or county enters into an agreement with the public
housing agency (satisfactory to the Public Housing Administration, hereinafter referred to as "Administration") providing for
local cooperation and payments in lieu of taxes not in excess of
the amount permitted by subsection (c) (5) of this section, and
the public housing agency enters into an agreement with the
Administration (in accordance with subsection (c) of this section) for the administration of the project:

50 Stat. 888.
42 U. S. C. §§ 14011430; Sup. III, 1401
et seq.
Post, p. 73.

Post,

p. 69.

Post, p. 69.

Project
number

State

Alabama----.----

-_-

1041
1061
1062
1031
1033
1034
1035
1036
1101
1102
1072
1076
1073
Arkansas-------------3023
California------------4031
4161
4141
4103
4104
4108
4121
4171
4174
Connecticut-------- -6091
6024
6031
6032
6101
6041
6213
District of Columbia--- 49012
49017
49044

Local public housing agency

Housing Authority of District of Birmingham.
Housing Authority of Greater Gadsden.
Housing Authority of Greater Gadsden.
Housing Board of Mobile.
Housing Board of Mobile.
Housing Board of Mobile.
Housing Board of Mobile.
Housing Board of Mobile.
Housing Board of Mobile.
Housing Board of Mobile.
Housing Authority of Sylacauga.
Housing Authority of Sylacauga.
Housing Authority of City of Talladega.
Housing Authority of City of Conway.
Housing Authority of City of Fresno.
Housing Authority of County of Kern.
Housing Authority of County of Kern.
Housing Authority of City of Los Angeles.
Housing Authority of City of Los Angeles.
Housing Authority of City of Los Angeles.
Housing Authority of City of Paso Robles.
Housing Authority of City of Richmond.
Housing Authority of City of Richmond.
Housing Authority of City of Bristol.
Housing Authority of Town of East Hartford.
Housing Authority of City of New Britain.
Housing Authority of City of New Britain.
Housing Authority of City of New Haven.
Housing Authority of City of Waterbury.
Housing Authority of City of Waterbury.
National Capital Housing Authority.
National Capital Housing Authority.
National Capital Housing Authority.

64 STAT.]

81ST CONG.. 2D SESS.-CH. 94-APR. 20, 1950
Project
,number

Sta tc

Florida------------ -

-

Georgia-------- ------

Illinois---------------

Indiana--------------.
Louisiana------------Maryland-------------

Massachusetts---------.

Michigan-------------Nevada---------------New Hampshire -----New Jersey-----------

New York-------------.

North Carolina-------Ohio-----------------.--

Oregon----------------:
Pennsylvania---------

81)52
8121
8062
8011
8082
8084
8085
8131
8041
9071
9061
9063
9041
9042
9043
11081
11082
11111
11112
12071
12021
16051
18095
18096
18097
18098
19051
19021
19022
19061
19023
290042
26021
27021
28044
2S021
28072
28111
30)31
30032
30042
30033
30039
30034
3()071
30082
31023
31024
33031
33033
33021
33071
33074
33075
33112
33261
33262
33041
33043
35021
36051
36058
36041
36042
36044
36151
36152
36061

Local public housing agency

Housing Authority of City of Jacksonville.
Housing Authority of City of Lakelnnd.
Housing Authority of City of Miami.
Housing Authority of City of Orlando.
Housing Authority of City of Pensacola.
Housing Authority of City of Pensacola.
Housing Authority of City of Pensacola.
Housing Authority of City of Sehring.
Housing Authority of City of West Palm
Beach.
Housing Authority of City of Albany.
Housing Authority of Macon.
Housing Authority of Macon.
Housing Authority of Savannah.
Housing Authority of Savannah.
Housing Authority of Savannah.
Madison County Housing Authority.
Madison County Housing Authority.
Winnebago County Housing Authority.
Winnebago County Housing Authority.
Housing Authority of City of Fort Wayne.
Housing Authority of City of South Bend.
Housing Authority of Parish of East Baton
Rouge.
Housing Authority of Baltimore City.
Housing Authority of Baltimore City.
Housing Authority of Baltimore City.
Housing Authority of Baltimore City.
Boston Housing Authority.
Chicopee Housing Authority.
Chicopee Housing Authority.
Pittsfield Housing Authority.
Springfield Housing Authority.
Housing Commission of Detroit.
Housing Authority of City of Las Vegas.
Housing Authority of City of Manchester.
Housing Authority of City of Camden.
Housing Authority of City of Long Branch.
Housing Authority of City of Newark.
Housing Authority of Town of P'lillipsburg.
Buffalo Municipal Housing Authority.
Buftfalo Munllicilpl Housing Authority.
Elmira Housing Authority.
Lackawanna Municipal Housing Authority.
Lnckawannrn Mlnicipanl Housing Autlority.
Niagara Falls Housing Authority.
Niagara Falls Housing Authority.
Massena Housing Authority.
Housing Authority of City of Wilmington.
Housing Authority of City of Wilmington.
Canton Metropolitan Housing Authority.
Canton Metropolitan Housing Authority.
Cincinnati Metropolitan Housing Authority.
Cleveland Metropolitan Housing Authority.
Cleveland Metropolitan Housing Authority.
Cleveland Metropolitan Housing Authority.
Lorain Metropolitan Housing Authority.
Lorain Metropolitan Housing Authority.
Lorain Metropolitan Housing Authority.
Warren Metropolitan Housing Authority.
Warren Metropolitan Housing Authority.
Housing Authority of Portland.
Housing Authority of County of Beaver.
Housing Authority of County of Beaver.
Housing Authority of Bethlehem.
Housing Authority of Bethlehem.
Housing Authority of Bethlehem.
Allegheny County Housing Authority.
Allegheny County Housing Authority.
Housing Authority of County of Lawrence.

67

68

PUBLIC LAWS-CH. 94-APR. 20, 1950
State

Project
number

Pennsylvania----------

:3(021
36031
36011
36012
36014
36015
36016
36101
36212
36295
Rhode Island----------. 37013
South Carolina-- ---38023
38061
38041
38042
Tennessee -------..
40022
40023
40011
40025
Texas-----------------. 41064
41065
41133
41031
41131
41101
41103
41072
41032
41141
41121
Virginia-------------- 44131
44132
44133
44135
44136
44065
44074
44086
Washington-----------

Conveyance of 1 ;manent war hotisirln
projects.

45043
45277N
45315N
45133
45052
45053
45054
45055
4505)f
45122

[(14 STAT.

Local public housing agency

Housing Authority of City of Erie.
Housing Authority of (ounty

oif Ly(colllng.

Housing Authority of Philuadlphliai.
Housing Authority of Philadelplhia.
Iousing Authority of 'lhiladelplhia.
Housing Authority of Philadelphia.
Housing Authority of Philadelphia.
Housing Authority of City of Pittsburgh.
Allegheny County Housing Authority.
Housing Authority of 'ity of York.
Housing Authority of City of Newport.
Housing Authority of City of Charleston.
Housing Authority of City of Charleston.
Housing Authority of City of Spartanburg.
Housing Authority of City of Spartanburg.
Jackson Housing Authority.
Milan Housing Authority.
Nashville Housing Authority.
Trenton Housing Authority.
Housing Authority of City of Corpus Christi.
Housing Authority of City of Corpus Christi.
Housing Authority of City of Freeport.
Housing Authority of City of Houston.
Housing Authority of City of Lake Jackson.
Housing Authority of City of Mineral Wells.
Housing Authority of City of Mineral Wells.
Housing Authority of City of Orange.
Housing Authority of City of Pasadena.
Housing Authority of City of Texarkana.
Housing Authority of City of Wichita Falls.
Alexandria Redevelopment
and
Housing
Authority.
Alexandria Redevelopment
and Housing
Authority.
Alexandria Redevelopment
and Housing
Authority.
Alexandria Redevelopment
and Housing
Authority.
Alexandria Redevelopment
and Housing
Authority.
Newport News Redevelopment and Housing
Authority.
Norfolk Redevelopment and Housing Authority.
Portsmouth Redevelopment and Housing
Authority.
Housing Authority of City of Bremerton.
Housing Authority of County of Clallam.
Housing Authority of County of Clallam.
Housing Authority of County of King.
Housing Authority of City of Seattle.
Housing Authority of City of Seattle.
Housing Authority of City of Seattle.
Housing Authority of City of Seattle.
Housing Authority of City of Seattle.
Housing Authority of City of Vancouver.

In addition to the authority of the Administrator under the first sentence of this subsection, the Administrator is hereby specifically authorized to convey any permanent war housing project to a local public
housing agency if requested in writing, within sixty days after the
enactment of the Housing Act of 1950, by such agency or the executive
head of the municipality (or of the county or parish if such project
is not in a municipality) within which the project is located, or by the
Governor of the State where an agency of the State has authority to
operate the project: Provided,That any conveyance by the Administrator pursuant to this sentence shall be subject to the same conditions
and requirements as provided in this section with respect to a project
specifically designated herein.

64 STAT.]

69

S1ST CONG., 2D SESS.-CH. 94-APR. 20, 1950

"'(b) Upon the conveyance by the Administrator of any such
project pursuant to the provisions of this section, such project shall
constitute and be deemed to be "low-rent housing" as that term is used
and defined in the United States Housing Act of 1937 (and to be a lowrent housing project assisted pursuant to that Act, within the meaning
of subsection 502 (b) of the Housing Act of 1948), except that no
capital grant or annual contribution shall be made by the Federal Government with respect to such project. Any instrument of conveyance
by the Administrator stating that it is executed under this Act shall be
conclusive evidence of compliance therewith insofar as any title or
other interest in the property is concerned.
"'(c) The agreement between the public housing agency and the
Administration required by subsection (a) of this section shall contain
the following conditions and requirements, and may contain such further conditions, requirements, and provisions as the Administration
determines" '(1) during a period of forty years following the conveyance
the project shall be administered as low-rent housing in accordance
with subsections 2 (1) and 2 (2) of the United States Housing Act
of 1937: Provided,That if at any time during such period the public housing agency and the Administration agree that the project,
or any part thereof, is no longer suitable for use as low-rent housing, the project, or part thereof, shall with the approval of the
Administration be sold by the public housing agency after which
the agreement shall be deemed to have terminated with respect to
such project or part thereof except that the proceeds from such
sale, after payment of the reasonable expense thereof, shall be paid
to the Administration;
"'(2) the public housing agency shall, within six months following the conveyance, initiate a program for the removal of all
families residing in the project on the date of conveyance who are
ineligible under the provisions of the United States Housing Act
of 1937 for continued occupancy therein, and shall have required
such ineligible tenants to vacate their dwellings within eighteen
months after the initiation of such program: Provided, That military personnel as designated by the Secretary of Defense or his
designee shall not be subject to such removal nItil eighteen months
after the date of conveyance;
"'(3) annually during the term of such agreement, the public
housing agency shall pay to the Administration all income from
the project remaining after deducting the amounts necessary (as
determined pursuant to regulations of the Administration) for
(i) the payment of reasonable and proper costs of operating,
maintaining, and improving such project, (ii) the payments in lieu
of taxes authorized hereunder, (iii) the establishment and maintenance of reasonable and proper reserves as approved by the
Administration, and (iv) the payment of currently maturing
installments of principal of and interest on any indebtedness
incurred by such public housing agency with the approval of the
Administration;
"'(4) during the term of such agreement, the project shall be
exempt from all real and personal property taxes levied or imposed
by the State, city, county, or other political subdivisions;
"'(5) for the tax year in which the conveyance is made and the
next succeeding tax year annual payments in lieu of taxes may be
made to the State, city, county, or other political subdivisions in
amounts not in excess of the real property taxes which would be
paid to such State, city, county, or other political subdivisions if
the project were not exempt from taxation; and thereafter, during

"Low-rent housing."

50 Stat. 888.
42 U. S. C. §§ 14011430; Sup. II, § 1401
el seq.

Post, p. 73.
62 Stat. 1284.
42 U. S. C., Sup. III,
§ 1404a.

Terms of agreement.
.nte, p. 66.

50 Stat. 888.
42 U..S. C. § 1402;
Sup. III, §1402.

50 Stat. 888.
42 U. S. C. §§ 140114:0; Sup. II. § 1401
et seq.

Post, p. 71r.

70

PUBLIC LAWS-CH. 94-APR. 20, 1950

[64 STAT.

the term of such agreement, payments in lieu of taxes with respect
to the project may be made in annual amounts which do not exceed
10 per centum of the annual shelter rents charged in such project;
"'(6) in selecting tenants for such project, the public housing
42 U.S. .,

m1410
(g).

sup. I,

50 Stat.
.40
1430; Sup. III,
1401
et *eq.

Pct, p. 73.

agency shall give such preferences as are prescribed by subsection
10 (g) of the United States Housing Act of 1937, except that for

one year after the date of conveyance of a project, the public hous-

ing agency shall, to the extent permitted by law, give such preferences, by allocation or otherwise, to military personnel as the
Secretary of Defense or his designee prescribes to the public
housing agency; and
"'(7) upon the occurrence of a substantial default in respect to
the requirements and conditions to which the public housing
agency is subject (as such substantial default shall be defined in
such agreement), the public housing agency shall be obligated at
the option of the Administration, either to convey title in any case
where, in the determination of the Administration (which determination shall be final and conclusive), such conveyance of title
is necessary to achieve the purposes of this title and the United
States Housing Act of 1937, or to deliver possession to the Administration of the project, as then constituted, to which such agreement relates: Provided, That in the event of such conveyance of
title or delivery of possession, the Administration may improve
and administer such project as low-rent housing, and otherwise
deal with such housing or parts thereof, subject, however, to the
limitations contained in the applicable provisions of the United
States Housing Act of 1937. The Administration shall be obligated to reconvey or to redeliver possession of the project, as
constituted at the time of reconveyance or redelivery, to such public housing agency or to its successor (if such public housing
agency or a successor exists) upon such terms as shall be prescribed in such agreement and as soon as practicable after the
Administration shall be satisfied that all defaults with respect to
the project have been cured, and that the project will, in order to
flllfill tle purposes of this title and the United States Housing Act
of 1,.937, thereafter be operated in accordance with the terms of
such agreement. Any prior conveyances and reconveyances,
deliveries and redeliveries of possession shall not exhaust the right
to require a conveyance or delivery of possession of the project to
the Administration pursuant to this paragraph upon the subseue
ent occurrence of a substantial default.

iscellaneos

.et,.
Disposal of permaDneiwal houingmaAnep..

Order of preference
Order of preferee
nated dwellings.

(d) At the end of each fiscal year, the total amount of payments
during such year to the Administration in accordance with subsection

(c) of this section shall be covered into the Treasury as miscellaneous
receipts.
ipts.
"'SEC. 607. (a) The Administrator shall, subject to the provisions
of this
section, dispose of permanent war housing, other than housing
conveyed pursuant to section 606 of this Act, as promptly as practicable

and
in theo public interest.
4&
' (b) Preference
in the purchase of any dwelling structure designed

for occupancy by not morethan four families and offered for separate
sale shall be granted to occupants and to veterans over other prospective
purchasers for such period as the Administrator may determine and
in the following order:
"'(1)
a veteran who occupies a unit in the dwelling structure
to be sold and who intends to continue to occupy such unit;
"'(2) a nonveteran who occupies a unit in the dwelling structure to be sold and who intends to continue to occupy such unit;

64 STAT.]

71

81sT CONG., 2D SESS.-CH. 94-APR. 20, 1950

"'(3) a veteran who intends to occupy a unit in the dwelling
structure to be sold.
"'Subject to the above order of preference, the Administrator may
establish subordinate preferences for any such dwelling structure.
As used in this section 607 (b), the term "veteran" shall include a
veteran, a serviceman, or the family of a veteran or a serviceman, or the
family of a deceased veteran or serviceman whose death has been determined by the Veterans' Administration to be service-connected.
" '(c) In the case of any housing project required by this section to
be disposed of, which is not offered for separate sale of separate dwelling structures designed for occupancy by not more than four families,
such project may be sold as a whole or in such portions as the Administrator may determine. On such sales of an entire project or portions
thereof consisting of more than one dwelling structure or of an individual dwelling structure designed for occupancy by more than four
families, first preference shall be given for such period not less than
ninety days nor more than six months from the date of the initial offering of such project or portions thereof as the Administrator may
determine, to groups of veterans organized on a mutual ownership or
cooperative basis (provided that any such group shall accept as a member of its organization, on the same terms, subject to the same conditions, and with the same privileges and responsibilities, required of,
and extended to other members of the group any tenant occupying
a dwelling unit in such project, portion thereof or building, at any
time during such period as the Administrator shall deem appropriate,
starting on the date of the announcement by the Administrator of the
availability of such project, portion thereof or building for sale), except that a first preference for said period of not less than ninety days
nor more than six months shall be given to any group organized on a
mutual or cooperative basis, which, with respect to its proposed purchase of a specific housing project or portions thereof, has, prior to
August 1, 1949, been granted an exception by the Administrator from
the sales preference provisions of Public Regulation 1 of the Housing
and Home Finance Agency and has been designated as a preferred

Subordinate preferences.
"Veteran."

Sale of entire project, etc.

purchaser.

"'(d) The Administrator shall provide an equitable method of
selecting the purchasers to apply when preferred purchasers (or
groups of preferred purchasers) in the same preference class or containing members in the same preference class compete with each other.
"' (e) Any housing disposed of in accordance with this section shall
after such disposal be deemed to be housing accommodations the construction of which was completed after June 30, 1947, within the meaning of section 4 of the Housing and Rent Act of 1947, as amended,
relating to preference or priority to veterans of World War II or
their families.
"'(f) Sales pursuant to this section shall be upon such terms as the
Administrator shall determine: Provided, That full payment to the
Government for the property sold shall be required within a period
not exceeding twenty-five years with interest on unpaid balances at
not less than 4 per centum per annum, except that in the case of projects initially programmed as mutual housing communities under the
defense housing program, the terms of sale shall not require a down
payment and shall provide for full payment to the United States over
a period of forty-five years with interest on unpaid balances at not
more than 3 per centum per annum.
"'SEC. 608. Notwithstanding any other provision of law, any land
acquired under this or any other Act in connection with war or veterans' housing, but upon which no dwellings are located at the time

61 Stat. 195.
50 U. S.C. app.
§1884.
Post, p. 255.
Terms of sale.

Sales of land.

72

PUBLIC LAWS-CH. 94-APR. 20, 1950

eyuards for
Ntional
poses.

Definition of terms.

54 Stat. 872; 55 Stat.
14, 197, 810.
42 U. S. C. §1552
note; Sup. 1, § 1524
notel.
Pat. 1). 73.

42 Stat. 1063.

§

p575.

0 Stat.

"'

888.

U.
S. C.
1430
1430;
Sup.
III, §5 14011401

p.

Ct

S

p.

7Statu.
388.

1&55.
Rmoval f

raryhousing.

STAT.

of sale, may be sold at fair value, as determined by the Administrator,
to any agency organized for slum clearance or to provide subsidized
housing for persons of low income.
"'SEC. 609. Notwithstanding any other provision of law, the Administrator is authorized to convey by quit claim deed, without consideration, to any State for National Guard purposes any land, together
with any nondwelling structures thereon, held under this or any
other Act in connection with war or veterans' housing: Provided,That
the United States shall be saved harmless from or reimbursed for such
costs incidental to the conveyance as the Administrator may deem
proper: Providedfurther, That the conveyance of such land shall contain the express condition that if the grantee shall fail or cease to use
such land for such purposes, or shall alienate (or attempt to alienate)
such land, title thereto shall, at the option of the United States, revert
to the United States.
"' SEC. 610. As used in this title, the following terms shall have the
meanings ascribed to them below, unless the context clearly indicates
otherwise:
"'(a) The term "governing body of the municipality or county"
means the governing body of the city, village, or other municipality
having general governmental authority over the area in which the
housing involved is located or, if the housing is not located in such a
municipality, the term means the governing body of the county or
parish in which the housing is located, or if the housing is located in
the District of Columbia the term means the Board of Commissioners
of said District.
"'(b) The term "housing" means any housing under the jurisdiction of the Administrator (including trailers and other mobile or portable housing) constructed, acquired, or made available under this Act
or Public Law 781, Seventy-sixth Congress, approved September 9,
1940, or Public Laws 9, 73, or 353 Seventy-seventh Congress,
approved, respectively, March 1, 1941, May 24, 1941, and December 17,
1941, or any other law, and includes in addition to dwellings any structiures, appurtenances, and other property, real or personal, acquired
for or held in connection therewith.
"'(c) The term "temporary housing" means any housing (as defined
in (b)) which the Administrator has determined to be "of a temporary
character" pursuant to this Act and shall also include any such housing
after rights thereto have been relinquished or transferred under this
title or section 505 of this Act.
44 (d) The terms "veteran" and "serviceman" mean "veteran" and
"serviceman" as those terms are defined in the United States Housing
Act of 1937.
"7.
'(e) The term "State" means any State, Territory, dependency, or

possession of the United States, or the District of Columbia.

"'(f) The term "going Federal rate of interest" means "going Federal rate" as that term is defined in the United States Housing Act
of 1937.
"'(!)
The term "United States Housing Act of 1937" means the
provisions of that Act, including all amendments thereto, now or
hereafter adopted, except provisions relating to the initial construction
of a project or dwelling units.'"
SEC. 202. Section 313 of the Act entitled "An Act to expedite the
provision of housing in connection with national defense, and for other
purposes", approved October 14, 1940, as amended, is hereby amended
to read as follows:
tempo"SEC. 313. Except as otherwise provided in this Act, the Administrator shall, as promptly as may be practicable and in the public
interest, remove (by demolition or otherwise) all housing under his

50 tat. sss.
42 U. S. C. §§14011430; Sup. i1, § 1401
et

[G64

(i4 STAT.]

73

81ST CONG., 2D SESS.-CH. 94--APR. 20, 1950

jurisdiction which is of a temporary character, as determined by him,
and constructed under the provisions of this Act, Public Law 781,
Seventy-sixth Congress, and Public Laws 9, 73, 353, Seventy-seventh
Congress. Such removal shall, in any event, be accomplished not later
than December 31.1952 orby such later date as may be required because
of extensions of time in accordance with section 604 hereof, with the
exception only of such housing as the Administrator, after consultation with local communities, finds is still urgently needed because of a

54 Stat. 872; .5 Stat.
14, 197, 810.
42 U. S. C. j 1552
note; Sup. 111,§ 1524
note.
Infra.
Ante, p. 64.

particularly acute housing shortage in the area: Provided, That all
such exceptions shall be reexamined annually by the Administrator
and that all such exceptions and reexaminations shall be reported to
the Congress. Notwithstanding any other provisions of law except

provisions of law hereafter enacted expressly in limitation hereof, no
Federal statute, or regulation thereunder, shall prohibit or restrict any
action or proceeding to recover possession of any housing accommodations for the purpose of carrying out the provisions of this section or
section 604 of this Act."
SEC. 203. Section 2 of Public Law 385, Seventy-ninth Congress, is
hereby repealed.
SEC. 204. The Act entitled "An Act to expedite the provision of
housing in connection with national defense, and for other purposes",

approved October 14, 1940, as amended, is hereby amended by striking
out the words "National Housing Administrator" and "National Housing Agency" wherever they appear in said Act and inserting in lieu
thereof the words "Housing and Home Finance Administrator" and
"Housing and Home Finance Agency", respectively.
SEC. 205. (a) Section 2 (d) of the Farmers' Home Administration
Act of 1946, as amended; section 43 (f) of the Bankhead-Jones Farm
Tenant Act, as amended; and Public Law 298, approved July 31, 1947,
as amended, are repealed effective as of the date of the transfer of the
property and funds authorized hereunder.
(b) The United States Housing Act of 1937, as amended, is hereby
amended by adding the following new subsection (f) to section 12:
"(f) There is hereby transferred to the Authority, effective not
later than sixty days after the effective date of the Housl ng Act of 1950,
all right, title, and interest, including contractual rights and reversionary interests, held by the Federal Government in and with respect to
all labor supply centers, labor homes, labor camps, and facilities held
in connection therewith and heretofore administered by the Secretary
of Agriculture, for use as low-rent housing projects for families and
persons of low income. Such projects when so transferred shall (notwithstanding any other provision of law) be low-rent housing projects
subject to the provisions of this Act, except as otherwise provided in
this subsection. Such projects shall be operated for the principal
purpose of housing persons engaged in agricultural work, and preference for occupancy in such projects shall be given to agricultural
workers and their families; the rents in such projects shall not be
higher than the rents which such tenants can afford; and the provisions of the second, third, and fourth sentences of subsection 2 (1) of
this Act shall not be applicable to such projects. The Authority is
authorized to enter into contracts for disposal of said projects by any
of the methods provided in this Act, including disposal of any such
project to a public housing agency for a consideration consisting of
the payment by the public housing agency to the Authority during a
term of not less than twenty years of all income therefrom after deduction of the amounts necessary for (i) reasonable and proper costs of
management, operation, maintenance, and improvement of such project; (ii) payments in lieu of taxes not in excess of 10 per centum of
shelter rents; (iii) establishment and maintenance of reasonable and

Repeal.
60 Stat. 203.

54 Stat. 1125.
42 U. S. C. ch. 9
note; §§ 1521-1574;
Sup. III, § 1521 et seq.
Ante, p. 59.

60 Stat. 1064.
7U. S.C., Sup. 11[,
1001 note.
60 Stat. 1068.
7 U. S. C. § 1017 (f)
61 Stat. 694.
7U.S.C., Sutl. ItI,
1017 note.
50 Stat. 894.
42 I. S. C. § 1112.
Transfer of l.lor
catups, etc.

63 Stat. 429.
42 U. S. C., Sup. IIL,
' 1402 (1).

74

Appropriations authorized.

Transfer of funds.
61 Stat. 109.

50 Stat. 888.
42 U. S. C. §§ 14011430; Sup. IIl, § 1401
t seq.
Ante, p. 73.

58 Stat. 284.
38 T. .S
.
9C
693697g; Sup. III, § 693 et
.¢q.
Post, p. 214.
58 Stat. 291.
38 U. S. C. 694 (a).

58 Stat. 291.
38 U. S. C. §694 (c).

59 Stat. 627.
38 U. S. C., Sup. III,

§694 C(b).

59 Stat. 627.
38U. S. C. 694 (d).

PUBLIC LAWS-CH. 94-APR, 20, 1950

[64 STAT.

proper reserves; and (iv) the payment of currently maturing installments of principal and interest on any indebtedness incurred in connection with such project by the public housing agency with the
approval of the Authority. Pending sale or lease of said projects to
public housing agencies, the Authority may continue present leases
and permits, or may enter into new leases with public bodies or nonprofit organizations for the operation of such projects. Pending sale
of such projects the Authority may make any necessary improvements
thereto and may pay any deficits incurred in their improvement and
administration out of any of the funds available to it under this Act.
Appropriations to reimburse the Authority for any amounts expended
pursuant to this subsection, in excess of the funds transferred with
such projects, are hereby authorized."
(c) All unexpended receipts (notwithstanding any limitations in
the second proviso of title I of Public Law 76, Eightieth Congress,
under the heading of "Farm Labor Supply Program") derived from
the sales of labor supply centers, labor homes, labor camps, and facilities, and all other unexpended balances of funds available for the
maintenance, operation, and liquidation of the properties transferred
hereunder and for administrative expenses in connection therewith
shall be transferred, upon the transfer of such properties, to the Public
Housing Administration to be available, until expended, in accordance
with the provisions of the United States Housing Act of 1937, as
amended.
TITLE III-AMENDMENTS OF SERVICEMEN'S
READJUSTMENT ACT OF 1944
SEC. 301. The Servicemen's Readjustment Act of 1944, as amended,
is amended(a) By inserting after the first sentence of section 500 (a) the
following new sentence: "The unremarried widow of any person who
met the service requirements for benefits under this title and who died,
either in service or after separation from service under conditions other
than dishonoralle, as a result of injury or disease incurred in or aggravated by such service in line of duty (other than any such widow who
by reason of her own service is eligible for the benefits of this title),
shall also be eligible for the benefits of this title; and the term 'veteran'
as used in this title shall include any such unremarried widow."; and
by adding the following new sentence at the end of section 500 (a) : "In
computing the aggregate amount of guaranty or insurance entitlement
available to a veteran under this title, the Administrator may in his
discretion exclude the initial use of the guaranty or insurance entitlement used for any loan with respect to which the security (1) has been
taken (by condemnation or otherwise) by the United States, any State,
or a local government agency for public use, or (2) has been destroyed
by fire or other natural hazard, or (3) has been disposed of because of
other compelling reasons devoid of fault on the part of the veteran:
Provided, That any amount paid by the Administrator under section
500 (c) of this part shall be deducted from the amount payable on the
succeeding loan under that section."
(b) By striking out "twenty-five years" in the second proviso of
section 500 (b) and inserting in lieu thereof "thirty years".
(c) By amending the first sentence of section 500 (d) to read as
follows: "Loans guaranteed hereunder may be made (1) by any Federal land bank, national bank, State bank, private bank, building and
loan association, insurance company, credit union, or mortgage and
loan company, that is subject to examination and supervision by an

64 STAT.]

81ST CONG., 2D SESS.-CHI.

75

94-APR. 20, 1950

agency of the United States or of any State or Territory, including the
District of Columbia, or (2) by any State."
(d) By inserting "(a)" after "SEc. 501.' and before the word "Any",
and by inserting at the end of section 501 the following new subsection:
"(b) Any loan made under this title to a veteran who has not previously availed himself of its benefits the proceeds of which loan are
to be used for purchasing residential property or constructing a
dwelling to be occupied as his home may, notwithstanding the provisions of subsection (a) of section 500 of this title relating to the percentage or aggregate amount of loan to be guaranteed, be guaranteed,
if otherwise made pursuant to the provisions of this title, in an amount
not exceeding sixty per centum of the loan: Provided,That the amount
of any such guaranty shall not exceed $7,500, nor shall the gratuity
payable under subsection (c) of section 500 of this title exceed that
which is payable on loans guaranteed in accordance with the maxima
provided for in subsection (a) of section 500 of this title."
(e) By inserting "(a)" after "SEC. 502.", and by inserting at the end
of section 502 the following new subsection:
"(b) For the purpose of encouraging the construction and improvement of farm housing the Administrator is authorized to guarantee a
loan for the construction or improvement of a farmhouse which loan is
secured by a first lien on a portion of the farm suitable in size and location as an independent home site, and to permit payment out of the
proceeds of such loan any sum required to obtain the release of such site
from existing indebtedness: Provided, That the Administrator may,
in his discretion, except any loan for the construction or improvement
of a farmhouse from the first lien requirement imposed by subsection
500 (b) of this title."
(f) By redesignating section 504 as section 504 (a) and by adding to
that section a new subsection (b) reading:
"(b) No loan for the purchase or construction of residential property on Which construction is begun subsequent to sixty days after the
date of enactment of the Housing Act of 1950, shall be financed through
the assistance of the provisions of this title unless the property conforms to minimum construction requirements prescribed by the

58 Stat. 292:59 Stat.
628.
38 U. S. C. § 694a.
Loans to veterans.

58 Stat. 291.
38 U. S. C. §694 (a).
Aide, p. 74.

58 Stat. 291.
38 U.S.C. §694 (c).

58 Stat. 292.
38 U. S. C. § 694b.
Loans
houses.

for

farm-

Ante, p. 74.
,58 Stat. 293.
38 U. S. C. § 604d.
Restriction on loans.

Administrator."

(g) By striking out all of subsection (a) of section 505 and by redesignating subsection (b) of said section 505 as "SEC. 505.": Provided,
That this subsection shall become effective December 31, 1950, or at
such earlier time as the Administrator of Veterans' Affairs shall determine, taking into consideration the interests of veterans and existing
plans, of both veterans and the home building industry, for the construction of homes: And provided further, That this subsection shall
not affect any guarantee made, or for which a certificate of commitment
has been issued by said Administrator, under section 505 (a) of the
Servicemen's Readjustment Act of 1944, as amended, prior to the
effective date of this subsection.
(h) By the addition of two new sections reading as follows:
"SUPPLEMENTAL DIRECT LOANS TO VETERANS

"SEC. 512. (a) Upon application by a veteran eligible for the benefits of this title who has not previously availed himself of his guaranty
entitlement, the Administrator is authorized and directed to make, or
enter into a commitment to make, the veteran a loan to finance the purchase or construction of a dwelling to be owned and occupied by him
as a home, or to finance the construction or improvement of a farmhouse, if (1) the Administrator has found, after the effective date of

58 Stat. 293.
38 U1. S. C. § 69.
Effective date.

76

PUBLIC LAWS-CH. 94-APR. 20, 1950

[64 STAT.

this section, that in the area in which the dwelling or farmhouse is
located or is to be constructed private capital is not available for the
financing of the purchase or construction of dwellings, or the construction or improvement of farmhouses, as the case may be, by veterans
under this title, and (2) the veteran shows to the satisfaction of the
Administrator"(A) that he is a satisfactory credit risk,
"(B) that the monthly payments to be required under the proposed loan bear a proper relation to the veteran's present and
anticipated income and expenses,
"(C) that he is unable to obtain from private lending sources
in such area at an interest rate not in excess of 4 per centum per
annum a loan for such purpose for which he is qualified under
Ante. p. 76.
section 501 or section 502 of this title, and
"(D) that he is unable to obtain a loan for such purpose from
50 Stat. 522; 63 Stat.
the
Secretary of Agriculture under the Bankhead-Jones Farm
413.
7 U. S. c. O 1000Tenant Act, as amended, or the Housing Act of 1949.
up0,II§
10071 et sq.;
f9 (b) Loans made under this section shall bear interest at the rate
42 U. S..,
Sup. III, of 4 per centum per annum and shall be subject to such requirements
1441 note.
Ante, pp. 73. 48, 1, or limitations prescribed for loans guaranteed under this title as
57,

9.

may be applicable: Provided, That-

" (A) the original principal amount of any such loan shall not
exceed $10,000;
"(B) the guaranty entitlement of the veteran shall be charged
with the same amount that would be deducted if the loan had been
Ante,
guaranteed to the maxima permitted under section 500 (a) of
this title;
"(C) the amount of loans made under this section shall not
exceed $150,000,000, and
"(D) the authority to make loans under this section shall expire
June 30, 1951.
"(c) In connection with any loan under this section, the Administrator is authorized to make advances in cash to pay the taxes and
assessments on the real estate, to provide for the purpose of making
repairs, alterations, and improvements, and to meet the incidental
expenses of the transaction, and shall credit to the principal of the
loan an amount equal to that which would have been payable under
.utaS.
291
(c). section 500 (c) of this title had the loan been made by a private institution.
"(d) The Administrator is authorized to sell, and shall offer for
sale, to any private lending institution evidencing ability to service
loans, any loan made under this section at a price not less than par;
that is, the unpaid balance plus accrued interest, and may guarantee
any loan thus sold subject to the same conditions, terms, and limitations
which would be applicable were the purchaser entitled to an automatic
Ane, p. 74.
guaranty under section 500 (a) of this title.
Effeetive date.
"(e) This section shall take effect ninety days after the date of
enactment of the Housing Act of 1950.
fdunvilbilit
of
"SEC. 513. (a) For the purposes of section 512 of this title, the
Ante, p. 75.
Secretary of the Treasury is hereby authorized and directed to make
available to the Administrator such sums, not in excess of $150,000,000
as the Administrator shall request from time to time except that no
sums may be made available after June 30, 1951. After the last day
on which the Administrator may make loans under that section, he
shall cause to be deposited with the Treasurer of the United States,
to the credit of miscellaneous receipts, that part of all sums in the
special deposit account referred to in subsection (c) of this section,
and all moneys received thereafter, representing unexpended advances
or the repayment or recovery of the principal of loans made pursuant

64 STAT.]

to section 312 of this title. Interest collected by the Administrator
on loans made under section 512 in excess of the amount payable by
him to the Treasurer of the United States under subsection (b) of this
section. together with any miscellaneous income or credits, shall constitute a reserve for payment of losses, if any, and expenses incurred
in the liquidation of said obligations. The Administrator shall have
power to invest such reserves, or any unexpended part thereof, from
time to time in obligations of the Government of the United States.
"(b) On advances by the Secretary of the Treasury under subsection (a) of this section, less those amounts deposited in miscellaneous
receipts under subsections (a) and (c) hereof the Administrator shall
pay semiannually to the Treasurer of the United States interest at the
rate or rates determined by the Secretary of the Treasury, taking into
consideration the current average rate on outstanding marketable obligations of the United States as of the last day of the month preceding
the advance.
"(c) In order to make available the sums payable under subsection
(a) of this section and to effectuate the purposes and functions authorized in section 512 of this title, the Secretary of the Treasury is hereby
authorized to use, as a public debt transaction, the proceeds of the
sale of any securities issued under the Second Liberty Bond Act as
now in force or as hereafter amended, and the purposes for which
securities may be issued under the Second Liberty Bond Act as now
in force or as hereafter amended, are hereby extended to include such
purposes.

77

81ST CONG.. 2D SESS.-CH. 94-APR. 20, 1950

Such sums, together with all receipts hereunder, shall be

deposited with the Treasurer of the United States, in a special deposit
account, and shall be available, respectively, for disbursement for the
purposes of section 512 of this title. Except as otherwise provided
in subsection (a) of this section, the Administrator shall from time to
time cause to be deposited into the Treasury of the United States, to
the credit of miscellaneous receipts, such of the funds in said account
as in his judgment are not needed for the purposes for which they were
provided, including the proceeds of the sale of any loans, and not later

than June 30, 1952, le shall cause to be so deposited all sunms in said
account and all moneys received thereafter in repayment of outstanding obligations, or otherwise, except so much thereof as le may determine to be necessary for purposes of liquidation. Without regard
to any other provisions of this title, said Administrator shall have
authority to take or cause to be taken such action as in his judgment
may be necessary or appropriate for or in connection with the custody.

management, protection, and realization or sale of such investments.
to determine his necessary expenses and expenditures, and the manner
in which the same shall be incurred, allowed and paid, to make such
rules, regulations, and orders as he may deem necessary or appropriate
for the carrying out of the functions hereby or hereunder authorized
and, except as otherwise expressly provided in this title, to employ.
utilize, compensate, and delegate any of his functions hereunder to.
such persons and such corporate or other agencies, including agencies
of the United States, as he may designate."
TITLE IV-HOUSING FOR EDUCATIONAL INSTITUTIONS
FEDERAL LOANS

SEC. 401. (a) To assist educational institutions in providing housing

for their students and faculties the Administrator may make loans of
funds to such institutions for the construction of such housing: Provided, That no such loan shall be made unless the educational institution shows that it is unable to secure the necessary funds for such

Ante, p. 75.

Availability
funds.

of

Ante, p. 75.

40 Stat. 28S.
31 U. S. C.

Sup. III, § 771.

771 (2);

78

PUBLIC LAWS-CH. 94-APR. 20, 1950

[64 STAT.

housing from other sources upon terms and conditions generally comparable to the terms and conditions applicable to loans under this title:
And provided further, That no such loan shall be made unless the
Administrator finds that the housing will be undertaken in such a
manner that economy will be promoted in its construction, and that
it will not be of elaborate or extravagant design or materials. Any
educational institution which, prior to the date of enactment of this
Act, has contracted for housing may, in connection therewith, receive
loans authorized under this title, as the Administrator may determine:
Provided further, That no such loan shall be made for any housing,
the construction of which was begun prior to the effective date of this
Act. A loan to an educational institution may be in an amount not
exceeding the total development cost, as determined by the Administrator, of the housing; shall bear interest at the annual rate of interest
(or, if there shall be two or more such rates of interest, the highest
thereof) specified in the most recently issued bonds of the Federal
Government having maturity of ten years or more, determined at the
date the contract for the loan is made, plus one-fourth of 1 per centum
per annum; and shall be secured in such manner and be repaid within
such period, not exceeding forty years, as may be determined by the
Administrator.
(b) To obtain funds for loans under this title, the Administrator
Funds for loans.
may issue and have outstanding at any one time notes and obligations
for purchase by the Secretary of the Treasury in an amount not to
exceed $300,000,000.
(C) Notes or other obligations issued by the Administrator under
lssuace of notesetc.
this title shall be in such forms and denominations, have such maturities, and be subject to such terms and conditions as may be prescribed by
the Administrator, with the approval of the Secretary of the Treasury.
Such notes or other obligations shall bear interest at a rate determined
by the Secretary of the Treasury, taking into consideration the current
average rate on outstanding marketable obligations of the United
States as of the last day of the month preceding the issuance of such
notes or other obligations. The Secretary of the Treasury is authorized and directed to purchlse any notes and other obligations of the
Administrator issued under this title and for such purpose is authorized to use as a public debt transaction the proceeds from the sale of
any securities issued under the Second Liberty Bond Act, as amended,
40 stat. 288.
S3uii 1.. 7 4 (; and the purposes for which securities may be issued under such Act,
as amended, are extended to include any purchases of such notes and
other obligations. The Secretary of the Treasury may at any time
sell any of the notes or other obligations acquired by him under this
section. All redemptions, purchases, and sales by the Secretary of
the Treasury of such notes or other obligations shall be treated as
public debt transactions of the United States.
thAppropriation

(d)

There are hereby authorized to be appropriated to the Adminis-

trator such sums as may be necessary, together with loan principal and
interest payments made by educational institutions assisted hereunder, for payments on notes or other obligations issued by the
Administrator under this section.
GEFXfAL PROVISIONS

SEC. 402. (a) In the performance of, and with respect to, the functions, powers, and duties vested in him by this title, the Administrator,
notwithstanding the provisions of any other law, shall(1) prepare annually and submit a budget program as provided
Budget program.
for wholly owned Government corporations by the Government
35 tt. 5Y. 841Corporation Control Act, as amended; and
8w; s. i. sS A
4.
Ptt . P
Post. p. 834.

64 STAT.]

79

81ST CONG., 2D SESS.-CH. 94-APR. 20, 1950

(2) maintain an integral set of accounts which shall be audited
annually by the General Accounting Office in accordance with the
principles and procedures applicable to commercial transactions
as provided by the Government Corporation Control Act, as
amended, and no other audit shall be required: Provided, That
such financial transactions of the Administrator as the making
of loans and vouchers approved by the Administrator in connection with such financial transactions shall be final and conclusive
upon all officers of the Government.
(b) Funds made available to the Administrator pursuant to the
provisions of this title shall be deposited in a checking account or
accounts with the Treasurer of the United States. Receipts and assets
obtained or held by the Administrator in connection with the performance of his functions under this title, and all funds available for
carrying out the functions of the Administrator under this title (including appropriations therefor, which are hereby authorized), shall
be available, in such amounts as may from year to year be authorized
by the Congress, for the administrative expenses of the Administrator
in connection with the performance of such functions.
(c) In the performance of, and with respect to, the functions,
powers, and duties vested in him by this title, the Administrator, notwithstanding the provisions of any other law, may(1) prescribe such rules and regulations as may be necessary to
carry out the purposes of this title;
(2) consult with and secure the advice and recommendations of
the Office of Education in the Federal Security Agency;
(3) sue and be sued;
4) foreclose on any property or commence any action to protect or enforce any right conferred upon him by any law, contract,
or other agreement, and bid for and purchase at any foreclosure
or any other sale any property in connection with which he has
made a loan pursuant to this title. In the event of any such acquisition, the Administrator may, notwithstanding any other provision of law relating to the acquisition, handling, or disposal of
real property by the United States, complete, administer, remodel
and convert, dispose of, lease and otherwise deal with, such property: Provided, That any such acquisition of real property shall
not deprive any State or political subdivision thereof of its civil
or criminal jurisdiction in and over such property or impair the
civil rights under the State or local laws of the inhabitants on
such property;
(5) enter into agreements to pay annual sums in lieu of taxes
to any State or local taxing authority with respect to any real
property so acquired or owned;
(6) sell or exchange at public or private sale, or lease, real or
personal property, and sell or exchange any securities or obligations, upon such terms as he may fix;
(7) obtain insurance against loss in connection with property
and other assets held;
(8) subject to the specific limitations in this title, consent to the
modification, with respect to rate of interest, time of payment of
any installment of principal or interest, security, or any other
term of any contract or agreement to which he is a party or which
has been transferred to him pursuant to this title; and
(9) include in any contract or instrument made pursuant to
this title such other covenants, conditions, or provisions as he may
deem necessary to assure that the purposes of this title will be
achieved.

Maintenance of ac-

counts.

59 Stat. 597.
31 U. S. C. §s 841869; Sup. III, j 846
et seq.
Post, p. 834.

Deposit of funds.
Funds for administrative expenses.

Functions, powers,
duties of Administrator.

80
41

§5.

PUBLIC LAWS-CH. 94-APR. 20, 1950
. S.C., Sup. III,

[64 STAT.

(d) Section 3709 of the Revised Statutes shall not apply to any
contract for services or supplies on account of any property acquired
pursuant to this title if the amount of such contract does not exceed
$1,000.
APPORTIONMENT

SEC. 403. Not more than 10 per centum of the funds provided for in
this title in the form of loans shall be made available to educational
institutions within any one State.
DEFINITIONS

SEC. 404. For the purposes of this title, the following terms shall
have the meanings, respectively, ascribed to them below:
(a) "Housing" means (1) new structures suitable for dwelling use,
including single-room dormitories and apartments, and (2) dwelling
facilities provided by rehabilitation, alteration, conversion, or
improvement of existing structures which are otherwise inadequate
for the proposed dwelling use.
(b) "Educational institution" means educational institutions of
higher learning, including (a) any public educational institution or
(b) any private educational institution, no part of the net earnings of
which shall inure to the benefit of any private shareholder or individual.
(c) "Development cost" means costs of the construction of the
housing and the land on which it is located, including necessary site
improvements to permit its use for housing purposes.
(d) "Faculties" means members of the faculty and their families.
(e) "State" shall include the several States, the District of Columbia, and the Territories and possessions of the United States.
(f) "Administrator" means the Housing and Home Finance Administrator.

(g) "Construction" means erection of new structures, or rehabilitation, alteration, conversion, or improvement of existing structures.
TITLE V-MIS(CELLANEOUS PROVISIONS
47 Slat. 731: 55 Stat.
62.
12 17. S. ('. § 1430;
Sup. {11. § 1430.

48 Stat. 1246.
12 U. S. C. § 1701
and note; Sup. II[,
i701c et seq.
Ani!e, pp. 48. 51-54,
57-59, 74: post, pp. 258,
259, 894; infra.
63 Stat. 906.
12 U. S. C. § 371:
Sup. III, §371.

62 Stat. 1283.
12 . S. C., Sup. III,
§ 170Ic(a).

SEc. 501. Section 10 of the Federal Home Loan Bank Act, as

amended, is hereby amended(1) by striking out of subsection (a) (1) the words "titles II
and VI' and inserting in lieu thereof the words "title I, title II.
title VI, or title VIII ; and
(2) by inserting the following after the word "maturity," in the
first sentence of subsection (b): "unless such home mortgage is
insured under the National Housing Act, as amended, or insured
or guaranteed under the Servicemen's Readjustment Act of 1944,
as amended,".
SEC. 502. Section 24 of the Federal Reserve Act, as amended, is
hereby amended by striking out of the third sentence "or title VIII"
and inserting in lieu thereof the words "title VIII. or section 8 of
title I".
SEC. 503. The Housing Act of 1948 is hereby amended(1) by amending the third sentence of section 502 (a) thereof to
read as follows:
"The Administrator, without in any way relieving himself from
final responsibility, may delegate any of his functions and powers to
such officers, agents, or employees as he may designate, may authorize
such successive redelegations of such functions and powers, as he may
deem desirable. and may make such rules and regulations as may be
necessary to carry out his functions, powers, and duties.";

64 STAT.]

81

S1ST CONG., 2n SESS.-CH. 94-APR. 20, 1950

words "or
(2) by amending subsection 502 (c) (2) by inserting· the
,
pav" after the word "reimburse" in said subsection.

62
'. S.1281.('.,
12 Stt.
ll,§1701 (h).

SEC. 504. With respect to housing built or sold with assistance pro-

Sup.

egulations.

vided under the National Housing Act, as amended, or title III of Stat. 291.
the Servicemen's Readjustment Act of 1944, as amended, the Federal ,ot2; sup. II, 1701o
Housing Commissioner and the Administrator of Veterans' Affairs, i 69469438 694g94j;
§694 et seq.
respectively, are hereby specifically authorized 4nd directed to issue sip. in,
pp. 48, 51 54,
t7-s9,
74, s48;post,
such regulations, applicable uniformly to all classes of mortgagees,
8
as they determine desirable for the purpose of limiting the charges and lp'i97. 258, 259, 94;
I.-lte,

fees imposed upon the builder, veteran, or other purchaser in connection with the financing of the construction or sale of such housing,
whether or not such charges were or are imposed in connection with
the financing assisted by the Federal Government, and no loan shall
be insured or guaranteed under such Acts unless the mortgagee certifies that it has not imposed upon the builder, veteran, or other purchaser any charges or fees in connection with the financing of the
construction or sale of such housing in excess of the charges or fees
permitted under such regulations for such purposes as are applicable
to the housing involved.
SEC. 505. The right to redeem provided for by title 28, United States
Code, section 2410 (c), shall not arise in any case in which the subor-

dinate lien or interest of the United States derives from the issuance
of insurance under the National Housing Act, as amended, or the
issuance of guaranties or insurance under the Servicemen's Readjust-

ment Act of 1944, as amended.

SEC. 506. Section 4 (c) of the Reconstruction Finance Corporation
Act, as amended, is hereby amended by striking out "$3,500,000,000"

and inserting in lieu thereof "$3,750,000,000".

SEC. 507. Notwithstanding the provisions of any other law, except

provisions of law hereafter enacted expressly in limitation hereof,
receipts of the National Capital Housing Authority from leases, sales,
or other sources under title I of the District of Columbia Alley Dwelling Act are and shall remain available to the Authority for the purposes of said title I, subject to approval by the Public Housing Admlinistration of budgets for maintenance and operation of properties

administered under title I in the same manner as budgets are approved
by said Administration with respect to maintenance and operation
of projects under title II of said Act.

SEC. 508. It is the intent of Congress that no sale of a dwelling on

which a mortgage is insured under the National Housing Act, as

amended, shall be financed, while such mortgage is so insured, at an
interest rate higher than that prescribed by the Federal Housing Commissioner. It is the further intent of Congress that no such sale shall

c., Sup. III,

28 S.
§2410(c).

412
SU.

C. § 1701

notet;

a,

.nte,
)p.97,

III

up

pp. 48, 51-54,
s:2'4p894;
,

s"pra1
15 U. . C., Sup. III,
§oi04ability of
funds.

5 S."tat(,

5-I03

x,.IStp. \',

-

,

10a et

2

(e
Ctati.

112

,,S-,lt.

'"'s2. § 1701

a.;i n...sup: . 111.
llit-s p4. 74 5 ,M
25pra
,59.
, Sp4p:p

be made, while such mortgage is so insured, on terms less favorable to
the purchaser as to amortization, retirement, foreclosure, or forfeiture
than those contained in such mortgage.
SEC. 509. Insofar as the provisions of any other law are inconsistent

with the provisions of this Act, the provisions of this Act shall be controlling: Provided,That nothing contained in this Act shall affect the
authority of the Housing and Home Finance Administrator under
title II of Public Law 266, Eighty-first Congress.
SEC. 510. Except as may be otherwise expressly provided in this Act,

all powers and authorities conferred by this Act shall be cumulative
and additional to and not in derogation of any powers and authorities
otherwise existing.

Notwithstanding any other evidences of the inten-

tion of Congress, it is hereby declared to be the controlling intent of
Congress that if any provisions of this Act, or the application thereof
to any persons or circumstances, shall be adjudged by any court of
competent jurisdiction to be invalid, sudh judgment shall not affect,
98362--51-PT.

--

provi-

iontrolling

421' . .C.,

Sup.

§.ie

I.

powers76.

bility

82

PUBLIC LAWS-CHS. 94-97-APR. 20, 24, 1950

[64 STAT.

impair, or invalidate the remainder of this Act or its applications to
other persons and circumstances, but shall be confined in its operation
to the provisions of this Act, or the application thereof to the persons
and circumstances, directly involved in the controversy in which such
judgment shall have been rendered.
Approved April 2(, 1950.
[CHAPTER 95]
April 24, 1950
IS. J. Res. 166]
[Public Law 4761

Posthumous award
to crew of U. S. Navy
Privateer.

JOINT RESOLUTION
To authorize the award posthumously of an appropriate decoration to members
of the crew of the United States Navy Privateer who lost their lives in or over
the Baltic Sea on April 8, 1950, while in the performance of duty.

Resolved by the Senate and Hose of Representatives of the United
States of America in Congress assembled, That the Secretary of the
Navy is authorized and directed to award posthumously to the officers
and crew of the United States Navy Privateer who lost their lives while
on a flight between Wiesbaden, Germany, and Copenhagen, Denmark,
in or over the Baltic Sea on April 8, 1950, an appropriate decoration in
recognition of their outstanding and heroic services in the performance
of duty.
SEC. 2. The Congress hereby tenders its condolences to the families
of the deceased and expresses its gratitude for their gallantry and
devotion to duty.
SEC. 3. The Secretary of the Navy is authorized and directed to
transmit a copy of this resolution to the family of each of the deceased.
Approved April 24, 1950.
[CHAPTER 96]

April 24, 1950
[11. J. Ies. 4541

[Public Law 477]

JOINT RESOLUTION
Relating to the continuance on the pay rolls of certain employees in cases of
death or resignation of Members of the House of Representatives, Delegates,
and Resident Commissioners.

of House.

Resolved by the Senate and IHouse of Representatives of the United
States of America in Congress assembled, That the first section of the

rontinuance on pay

joint resolution entitled "Joint resolution relating to the continuance

Clerks of Mebers

on the pay rolls of certain employees in cases of death or resignation
of Members of the House of Representatives, Delegates, and Resident

49tat 679
2

.St.

92b.

44 S

2 u. s. c. 92a

Commissioners", approved August 21, 1935, is hereby amended to

read as follows: "That notwithstanding the provisions of the third
paragraph under the heading 'Clerical assistance to Senators' of section 1 of the Legislative Appropriation Act for the fiscal year ending
June 30, 1928 (U. S. C., Supp. V, title 2, sec. 92a), in case of the death
or resignation of a Member of the House during his term of office, the
clerical assistants designated by him and borne upon the clerk hire
pay rolls of the House of Representatives on the date of such death
or resignation shall be continued upon such pay rolls at their respective
salaries until the successor to such Member of the House is elected to
fill the vacancy."
Approved April 24, 1950.
[CHAPTER 97]

April 24, 1950
[H. R. 5839]
[Public Law 478]

AN ACT
To facilitate and simplify the work of the Forest Service, and for other purposes.

Be it enacted by the Senate and House of Representatives of the

Forest Service.

United States of America in Congress assembled, That, notwith-