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"(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 single-family residence the construction of which is begun after July 1, 1949, 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 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 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 July 1, 1949, and which is approved for morgage 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 three-bedroom unit or a four-bedroom unit, as the case may be, but the principal obligation shall not exceed, in any event, $8,550: 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 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, and shall not exceed 85 per centum of the appraised value of the property: And provided further, 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 limintations, to construct dwellings for families of lower income without sacrifice of sound standards of construction, design, and livability.

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(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 said Act.

SEC. 105. 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,'

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SEC. 106. Section 207 (c) of said Act, as amended, is hereby amended

(1) by striking out the second proviso in paragraph numbered (2), and inserting in lieu thereof the following: "And provided further, That, notwithstanding any of the provisions of this paragraph numbered (2), a mortgage with respect to a project to be constructed in a locality or a metropolitan area where, as determined by the Commissioner, there is a need for new dwellings for families of lower income at rentals comparable to the rentals proposed to be charged for the dwellings in such project may involve a principal obligation in an amount not exceeding 90 per centum of the amount which the Commissioner estimates will be the value of the project when the proposed improvements are completed, and"; (2) by amending paragraph numbered (3) to read as follows:

(3) 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 with respect to mortgages insured under the provisions of the second proviso of paragraph numbered (2) of this subsection, the mortgage may involve a principal obligation not to exceed $6,300 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 second sentence the words "date of the insurance" and substituting in lieu thereof the words "beginning of amortization".

SEC. 107. 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. 108. Section 207 (q) of said Act, as amended, is hereby amended by inserting "and section 213 of this title," after the words "this section," and by inserting the words "and in said section 213" after the words "in said proviso". SEC. 109. Section 211 of said Act, as amended, is hereby amended by striking out the period and adding a comma and the following: "and in view of possible unemployment, economic conditions, or misfurtune beyond the control of the mortgagor, where the mortgage is insured under this title or title VI or section 8 of title I and covers a dwelling or dwellings designed principally for residential use for not more than four families, and notwithstanding any limitations contained in this title or title VI or section 8 of the title I with respect to the maximum maturity, the Commissioner is authorized and directed to issue rules or regulations shall permit provisions in the mortgage in form satisfactory to him with respect to the deferment of monthly payments and may, in his discretion, require such provisions: Provided, That any such deferments shall not in the aggregate result in an extension of the maturity of the mortgage for a period of more than three years."

SEC. 110. Section 212 (a) of said Act, as amended, is hereby amended by deleting the words "a mortgage" immediately after the words "effective date of this section," and by inserting in lieu of the words deleted the following: "or under section 213 of this title, or under title VII pursuant to any application filed subsequent to August 31, 1949, a mortgage or investment”.

SEC. 111. Title II of said Act, as amended, is hereby amended by adding at the end thereof the following new section reading as follows:

"COOPERATIVE HOUSING INSURANCE

"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 on such mortgages during construction), which cover property held by

(1) a nonprofit cooperative ownership housing corporation the permanent occupancy of the dwellings of which is restricted to members of such corporation; or

"(2) a nonprofit corporation organized for the purpose of construction of homes for members of the corporation;

which corporations 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 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 could more adequately be met by per room cost limitations, the mortgage 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: Provided, That the maximum dollar amount prescribed in this paragraph (2) shall be increased by $9 per family unit or $2 per room, as the case may be, for each 1 per centum of the membership of the corporation which consists of veterans of World War II; and

"(3) 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, except that such maximum mortgage amount shall be increased by one-tenth of 1 per centum of such estimated cost for each 1 per centum of the membership of the corporation which consists of veterans of World War II: Provided, That the maximum mortgage amount shall not be increased as provided in paragraph (2) or paragraph (3) of this subsection unless evidence satisfactory to the Commissioner is furnished to assure that the benefit of such increase will accrue to the members of the corporation who are veterans of World War II.

"(c) To be eligible for insurance under this section a mortgage on any property or project of a corporation 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 singlefamily 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 mortgage limitations prescribed in paragraphs numbered (2) and (3) 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 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 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 nonprofit corporation which constructed the dwelling or the owner and occupant of the dwelling at the time. Provided, That, for a period of two years immediately following the completion of the construction of the dwelling involved, the owner and occupant thereof shall not be the mortgagor with respect to an individual mortgage thereon insured under this section. Property covered by a mortgage insured under 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.

"(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 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 duties 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 and the basic rate of compensation of such position shall be $12,000 per annum."

SEC. 112. Section 301 (a) of said Act, as amended, is hereby amended(1) by striking out of paragraph (1) the words "title VI of" and inserting in lieu thereof the words "title VI, or section 8 of title I of";

(2) by striking out of paragraph (1) the words "Provided, however," and inserting in lieu thereof the following "Provided, That no deposit or fee required or charged by the Association for the purchase of, or commitment to purchase, a mortgage hereunder shall exceed one-half of 1 per centum of the original principal obligation of such mortgage: And provided further,";

(3) by striking out the period and adding the following proviso at the end of paragraph (1) (E): ": Provided, That this clause (2) shall not apply to (nor shall any terms therein include) any mortgage which after July 1, 1949, is (i) guaranteed under section 501 or 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 8, section 203 (b) (2) (D), section 207, section 213, section 608 (including section 608 pursuant to section 610), or section 611 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 mortgagee certifies that such dwelling conforms with minimum construction standards prescribed by the Administrator of Veterans' Affairs." : Provided, That this clause (4) shall become effective 90 days after the date of the approval of the Housing Amendments of 1949; and

(5) by adding the following new paragraph between paragraph (1) and paragraph (2) and redesignating paragraph (2) as paragraph "(3)":

"(2) to make real estate loans which are accepted for insurance or insured under section 207, section 213, or section 608 (including section 608 pursuant to section 610) of this Act: Provided, That no such loan shall be made by the Association unless the financial assistance applied for is not otherwise available on reasonable terms."

SEC. 113. The first sentence of section 302 of said Act, as amended, is hereby amended to read as follows:

"The total amount of investments, loans, purchases, and commitments made by the Association shall not exceed $2,000,000,000 outstanding at any one time." SEC. 114. 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”. SEC. 115. Section 4 (c) of the Reconstruction Finance Corporation Act, as amended, is hereby amended by striking out "$2,500,000,000" and inserting in lieu thereof "$2,800,000,000”.

SEC. 116. Section 603 (a) of the National Housing Act, as amended, is hereby amended by striking out of the first proviso "$5,750,000,000" and inserting in lieu thereof "$6,150,000,000" and by striking out "$6,150,000,000" and inserting in lieu thereof "$6,650,000,000", and by striking out of the second proviso "August 31, 1949" in each place where it appears therein and inserting in lieu thereof "March 31, 1950".

SEC. 117. Section 608 (g) of said Act, as amended, is hereby amended by striking out the words "title II" in each place they appear therein and inserting in lieu thereof "title I or title II".

SEC. 118. 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)"; and

(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 42 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."

SEC. 119. 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, 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

"(c) To be eligible for insurance under this section a mortgage on any property or project of a corporation 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 singlefamily 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 mortgage limitations prescribed in paragraphs numbered (2) and (3) 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 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 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 nonprofit corporation which constructed the dwelling or the owner and occupant of the dwelling at the time. Provided, That, for a period of two years immediately following the completion of the construction of the dwelling involved, the owner and occupant thereof shall not be the mortgagor with respect to an individual mortgage thereon insured under this section. Property covered by a mortgage insured under 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.

"(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 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 duties 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 and the basic rate of compensation of such position shall be $12,000 per annum."

SEC. 112. Section 301 (a) of said Act, as amended, is hereby amended

(1) by striking out of paragraph (1) the words "title VI of" and inserting in lieu thereof the words "title VI, or section 8 of title I of";

(2) by striking out of paragraph (1) the words "Provided, however," and inserting in lieu thereof the following "Provided, That no deposit or fee required or charged by the Association for the purchase of, or commitment to purchase, a mortgage hereunder shall exceed one-half of 1 per centum of the original principal obligation of such mortgage: And provided further,";

(3) by striking out the period and adding the following proviso at the end of paragraph (1) (E): ": Provided, That this clause (2) shall not apply to (nor shall any terms therein include) any mortgage which after July 1, 1949, is (i) guaranteed under section 501 or 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 8, section 203 (b) (2) (D), section 207, section 213, section 608 (including section 608 pursuant to section 610), or section 611 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

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