unpaid principal balance of the loan plus any accrued interest and any proper advances theretofore made by the mortgagee under the provisions of the mortgage; and after the acquisition of such mortgage by the Commissioner such mortgagee shall have no further rights, liabilities, or obligations with respect thereto. The provisions of section 204 relating to the issuance of debentures incident to the acquisition of foreclosed properties shall apply with respect to debentures issued under this subsection, and the provisions of section 204 relating to the rights, liabilities, and obligations of a mortgagee shall apply with respect to the Commissioner when he has acquired an insured mortgage under this section, in accordance with and subject to regulations (modifying such provisions to the extent necessary to render their application for such purposes appropriate and effective) which shall be prescribed by the Commissioner."

[S. 266, 86th Cong., 1st sess.]

A BILL To authorize additional capital grants for urban renewal and redevelopment projects, and to encourage participation by the States in slum clearance and prevention Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 101 (b) of the Housing Act of 1949 is amended by adding at the end thereof a new sentence as follows: "The Administrator shall particularly encourage the utilization of local public agencies established by the States to operate on a statewide basis in behalf of smaller communities within the State, whenever that arrangement provides an effective solution to community development or redevelopment problems in such communities, and is approved by resolution or ordinance of the governing bodies of the affected communities."

SEC. 2. The first sentence of section 103(b) of the Housing Act of 1949 is amended to read as follows: "The Administrator, on and after July 1, 1949, may, with the approval of the President, contract to make capital grants, with respect to projects assisted under this title, and to make grants pursuant to subsection (c) of this section, aggregating not to exceed $1,250,000,000, which limit shall be increased by $250,000,000 on July 1 in each of the fiscal years 1960 through 1965; except that any such authorized increase may be increased by additional amounts aggregating not more than $100,000,000 in any fiscal year upon a determination by the President that such additional amounts are necessary to stimulate economic activity and to carry out the urban renewal objectives of this title: Provided, That the amount of capital grants contracted for under this title prior to July 1, 1966, shall not exceed an aggregate of $3,350,000,000."

SEC. 3. Section 103 (a) of the Housing Act of 1949 is hereby amended by striking out the second sentence and inserting in lieu thereof the following: "The aggregate of such capital grants with respect to all the projects of a local public agency on which contracts for capital grants have been made under this title shall not exceed the sum of the applicable percentages of the respective net project costs of such projects. Such percentages, which shall apply to all projects receiving initial Federal recognition during the period specified, shall be 66% per centum for the period prior to July 1, 1960; 60 per centum for the period between July 1, 1960, and June 30, 1961, inclusive; 55 per centum for the period between July 1, 1961, and June 30, 1962, inclusive; and 50 per centum for any time thereafter: Provided, That the percentage for any project for which no planning grant is received and retained by the local public agency and which the Administrator, at the request of such agency, may approve on a three-fourths capital grant basis shall be 75 per centum, or such lesser percentage as the Administrator determines to be generally consistent with the percentage of net project costs hereunder applicable at the time to projects not so approved." SEC. 4. Section 104 of the Housing Act of 1949 is hereby amended to read as follows:

"SEC. 104. Every contract for capital grants under this title shall require local grants-in-aid in connection with the project involved which, together with the local grants-in-aid to be provided in connection with all other projects of the local public agency on which contracts for capital grants have theretofore been made, will be at least equal to the difference between the aggregate net project costs involved and the sum described in the second sentence of section 103 (a)." SEC. 5. Section 106 of the Housing Act of 1949 is amended by adding at the end thereof the following new subsection:

"(h) Without limiting any authority otherwise provided in this title, any local grants-in-aid may be furnished by the State government as distinguished from other local public agencies, as herein defined. In making capital grants available for projects, priority shall be given a project in a State where the State government has furnished or contracted to furnish local grants-in-aid to the project in an amount which equals or exceeds one-half the total required amount."

[S. 271, 86th Cong., 1st sess.]

A BILL To make certain assistance by a State, municipality, or other public body eligible as local grants-in-aid under section 110 (d) of the Housing Act of 1949

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the requirement in section 110(d) of the Housing Act of 1949 that the assistance given by a State, municipality, or other public body under that section shall be in connection with a project on which a contract for capital grant has been made under title I of that Act shall not apply to assistance provided during the period from January 1, 1957, through December 31, 1958, in connection with (1) urban-renewal activities which, at the time that the assistance was given, had not been extended recognition as a project to be assisted under that title solely because of then existing limitations on the authority of the Housing and Home Finance Administrator to make capital grants under that title or to reserve funds for such purpose, or (2) urbanrenewal activities which were extended such recognition within sixty days after the provision of such assistance was initiated.

[S. 272, 86th Cong., 1st sess.]

A BILL To amend the Housing Act of 1954 with respect to urban planning for groups of adjacent communities

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 701 of the Housing Act of 1954 is amended by striking out in the first sentence the language after the parenthetical clause and inserting in lieu thereof the following: "to (1) cities and other municipalities having a population of less than 25,000 according to the latest decennial census, and (2) to any group of adjacent communities, either incorporated or unincorporated, having a total population of less than 25,000 according to the latest decennial census and having common or related urban planning problems resulting from rapid urbanization."

[S. 336, 86th Cong., 1st sess.]

A BILL To protect borrowers against excessive cash requirements and minimum terms in the case of home loans guaranteed under title V of the Servicemen's Readjustment Act of 1944, or secured by mortgages insured under section 203 of the National Housing Act Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That no loan the proceeds of which are to be used for the purchase or construction of a home (including a farmhouse) shall be guaranteed or insured under title V of the Servicemen's Readjustment Act of 1944, and no mortgage securing a loan for the purchase or construction of residential property to be occupied by the mortgagor as his home shall be insured under section 203 of the National Housing Act, after the date of enactment of this Act (except pursuant to a commitment entered into prior to such date), if (1) the cash payment required with respect to the purchase or construction of such home is in excess of the amount required, or (2) the period in which the loan is payable in full is less than the maximum period permitted, by the Veterans' Administrator or the Federal Housing Commissioner, as the case may be, for purposes of obtaining such guaranty or insurance; unless the borrower certifies that the amount of such cash payment and the period in which such loan is payable in full are in accordance with his wishes.

[S. 612, 86th Cong., 1st sess.]

A BILL To extend and amend laws relating to the provision and improvement of housing and the conservation and development of urban communities, and for other purposes

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 1959".

TITLE I-FHA INSURANCE

SEC. 101. Section 2 (a) of the National Housing Act is amended by striking out "on and after July 1, 1939, and prior to September 30, 1959,".

SEC. 102. (a) Section 2 (a) of such Act is amended by striking out the last sentence of the first paragraph thereof.

(b) Section 203 (a) of such Act is amended by striking out the colon and all that follows the colon and placing a period after the word "thereon".

(c) Section 203 (i) of such Act is amended by striking out the comma following the word "highway" and everything that follows and inserting a period in lieu thereof.

(d) Section 217 of such Act is repealed.

(e) Section 701 of such Act is amended by striking out the colon at the end of the first proviso and everything that follows and inserting a period in lieu thereof.

SEC. 103. (a) Section 8(g) of such Act is amended by striking out "and (h) of section 204" and inserting in lieu thereof "(h), (j), and (k) of section 204."

(b) Sections 213 (e), 222(f) (1), 221(g) (1), 222(e), and 809(e) of such Act are each amended by striking out "and (j) of section 204" and inserting in lieu thereof "(j) and (k) of section 204".

SEC. 104. Section 203 (b) of such Act is amended by

(1) striking out "$20,000" in paragraph (2) and inserting in lieu thereof "$25,000"; and

(2) striking out the period at the end of paragraph (8) and inserting in lieu thereof a colon and the following: “Provided, That such 85 per centum limitation shall not be applicable if the mortgagor and mortgagee assume responsibility in a manner satisfactory to the Commissioner for the reduction of the mortgage by an amount not less than 15 per centum of the outstanding principal amount thereof in the event the mortgaged property is not, prior to the due date of the eighteenth amortization payment of the mortgage, sold to a purchaser acceptable to the Commissioner who is the occupant of the property and who assumes and agrees to pay the mortgage indebtedness."

SEC. 105. Section 204 (k) of such Act is amended to read as follows:

"(k) Notwithstanding any other provision of this section or of section 604 or 904 and with respect to any debentures issued in exchange for properties conveyed to and accepted by the Commissioner after the effective date of the Housing Act of 1959 in accordance with such sections, the Commissioner may: (1) include in debentures reasonable payments made by the mortgagee with the approval of the Commissioner for the purpose of protecting, operating or preserving the property, and taxes imposed upon any deed or any other instrument by which the property was acquired by the mortgagee and transferred or conveyed to the Commissioner; (2) include in debentures as a portion of foreclosure costs (to the extent that foreclosure costs may be included in such debentures by any other provision of this Act) payments made by the mortgagee for the cost of acquiring the property and conveying and evidencing title to the property to the Commissioner; and (3) terminate the mortgagee's obligation to pay mortgage insurance premiums upon receipt of an application for debentures filed by the mortgagee, or in the event the contract of insurance is terminated pursuant to section 229."

SEC. 106. Section 207 of such Act is amended by

(1) striking out in subsection (b) "(except provisions relating to housing for elderly persons)" and "(except with respect to housing designed for elderly persons, with occupancy preference therefor, as provided in the paragraph following paragraph (3) of subsection (c))";

(2) striking out in subsection (c) the first unnumbered paragraph following paragraph (3);

(3) striking out "4% per centum" in the first sentence of the second unnumbered paragraph following paragraph (3) of subsection (c) and inserting in lieu thereof "51⁄2 per centum"; and

(4) adding at the end thereof a new subsection (r) to read as follows: "(r) Notwithstanding any other provision of this Act, the Commissioner is authorized to include in any mortgage insured under any title of this Act, after the effective date of the Housing Act of 1959, a provision requiring the mortgagor to pay a service charge to the Commissioner in the event such mortgage is assigned to and held by the Commissioner. Such service charge shall not exceed the amount prescribed by the Commissioner for mortgage insurance premiums applicable to such mortgage."

SEC. 107. Section 212 (a) of such Act is amended by adding before the period at the end thereof ", and any mortgage insured under sections 221(d) (4) and 230 (c) (4)".

SEC. 108. Section 213 (d) of such Act is amended by

(1) striking out the first sentence and inserting in lieu thereof the following: "Any mortgage insured under this section shall provide for complete amortization by periodic payments within such term 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 51⁄2 per centum per annum, on the amount of the principal obligation outstanding at any time, except that individual mortgages insured pursuant to this subsection covering the individual dwellings in the project may bear interest at such per centum per annum, not in excess of 6 per centum per annum on the amount of the principal obligation outstanding at any time, as the Commissioner finds necessary to meet the mortgage market."; and

(2) striking out the last sentence and inserting in lieu thereof the following: "Property covered by a mortgage executed by a corporation or trust of the character described in subsection (a) shall include eight or more family units. Property covered by a mortgage executed by a corporation or trust of the character described in paragraph (1) or (3) of subsection (a) of this section may include such commercial and community facilities as the Commissioner deems adequate to serve the occupants of the property." SEC. 109. The first sentence of section 214 of such Act is amended by striking out "mortgage amounts provided in this Act," and inserting in lieu thereof "mortgage amounts including increased mortgage amounts in geographical areas where cost levels require an increase) provided in this Act,".

SEC. 110. Section 218 of such Act is repealed.

SEC. 111. Section 220 (d) (3) of such Act is amended to read as follows: "(3) The mortgage shall

"(A) involve a principal obligation (including such initial service charges, appraisal, inspection, and other fees as the Commissioner shall approve) in an amount not in excess of

"(i) $25,000 in the case of a property upon which there is located a dwelling designed principally for a one- or two-family residence, or in the case of a dwelling (or dwellings) designed for more than two families but less than twelve families, such greater amount as the Commissioner may prescribe;

"(ii) 97 per centum of $13,500 of the Commissioner's estimate of the replacement cost of the property as of the date the mortgage is accepted for insurance plus 85 per centum of such cost in excess of $13,500 but not in excess of $16,000 and 70 per centum of such cost in excess of $16,000 if the application for insurance is for construction of a proposed dwelling approved for insurance prior to the beginning of construction;

"(iii) 97 per centum of $13,500 of the Commissioner's estimate of the appraised value of the property as of the date the mortgage is accepted for insurance plus 85 per centum of such value in excess of $13,500 but not in excess of $16,000 and 70 per centum of such value in excess of $16,000 if the application for insurance covers (1) an existing dwelling, the construction of which was completed more than one year preceding the date of the appplication for insurance, or (2) a dwelling which is to be rehabilitated with the mortgage proceeds;

"(iv) 90 per centum of $13,500 of the Commissioner's estimate of the appraised value of the property as of the date the mortgage is accepted

for insurance plus 85 per centum of such value in excess of $13,500 but not in excess of $16,000 and 70 per centum of such value in excess of $16,000 if the application for insurance covers (1) a dwelling under construction at the time the application is filed, or (2) an existing dwelling, the construction of which was completed within one year prior to the date of the application for insurance;

"(v) 85 per centum of any mortgage amount computed under the foregoing provisions of this subparagraph (A) if the mortgagor is not the occupant of the property: Provided, That such 85 per centum limitation shall not be applicable if the mortgagor and mortgagee assume responsibility in a manner satisfactory to the Commissioner for the reduction of the mortgage by an amount not less than 15 per centum of the outstanding principal amount thereof in the event the mortgaged property is not, prior to the due date of the eighteenth amortization payment of the mortgage, sold to a purchaser acceptable to the Commissioner who is the occupant of the property and who assumes and agrees to pay the mortgage indebtedness;

"(B) (i) not exceed $12,500,000, or, if executed by a mortgagor coming within the provisions of paragraph (2) (B) of this subsection (d), not exceed $50,000,000;

"(ii) not exceed (in the case of a property or project approved for mortgage insurance prior to the beginning of construction) the Comissioner's estimate of the replacement cost of the property or project when the proposed improvements are completed (the replacement cost may include the land, the proposed physical improvements, utilities within the boundaries of the land, architect's fees, taxes, interest during construction, and other miscellaneous charges incident to construction and approved by the Commissioner, but shall not include any allowance for builder's or sponsor's general overhead and profit);

"(iii) not exceed 90 per centum of the Commissioner's estimate of the value of the property or project when the proposed improvements are completed if the proceeds of the mortgage are to be used for the repair or rehabilitation of a project or property; and

"(iv) not exceed, for such part of the property or project as may be attributable to dwelling use (excluding exterior land improvements as defined by the Commissioner), $2,250 per room (or $8,100 per family unit if the number of rooms in such property or project is less than four per family unit). The Commissioner may, in his discretion, increase the dollar amount limitation of $2,250 per room to not to exceed $2,700 per room and the dollar amount limitation of $8,100 per family unit to not to exceed $8,400 per family unit, as the case may be, to compensate for the higher costs incident to the construction of elevator-type structures and may, in his discretion, increase any of the foregoing dollar amount limitations by not to exceed $1,000 per room without regard to the number of rooms being less than four, or four or more, in any geographical area where he finds that cost levels so require. "(v) include such nondwelling facilities as the Commissioner deems adequate to serve the needs of the occupants of the property and of other housing in the neighborhood."

SEC. 112. Section 221 of such Act is amended by—

(1) inserting in the first proviso of the second sentence of subsection (a) the word "reasonable" immediately preceding the word "preference";

(2) striking out "$10,000" in paragraph (2) of subsection (d) and inserting in lieu thereof "$12,000";

(3) striking out paragraph (3) of subsection (d) and inserting the following new paragraph (3):

"(3) if executed by a mortgagor which is a private nonprofit corporation, association, or organization acceptable to the Commissioner, not exceed— "(i) $12,500,000; and

"(ii) $9,000 per family unit for such part of such property or project as may be attributable to dwelling use, except that the Commission may increase this amount to not to exceed $10,000 in any geographical area where he finds that cost levels so require; and

"(iii) the Commissioner's estimate of the replacement cost of the property or project when the proposed improvements are completed in the case of a property or project approved for mortgage insurance prior