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1 SEC. 703. The Secretary is authorized to insure under 2 any section of this Act any mortgage assigned to him in 3 connection with payment under a contract of insurance 4 which he subsequently sells or any mortgage executed in 5 connection with the sale by him of any property acquired 6 under any section of this Act or under any section or title 7 of the National Housing Act. This authority may be exer8 cised without regard to any limitations or requirements 9 contained in this Act upon the eligibility of the mortgage 10 for insurance, upon the payment of insurance premiums, or 11 upon the terms and conditions of insurance settlement and 12 the benefits of the insurance to be included in such settlement. 13 EXPENDITURES TO CORRECT OR COMPENSATE FOR STRUC

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TURAL DEFECTS IN MORTGAGED HOMES AND EX

PERIMENTAL PROPERTY

SEC. 704. (a) The Secretary is authorized to correct 17 structural defects, or to pay the claim of the owner of the 18 property arising from such defects, or to acquire title to the

19 property in which such defects exist, if

(1) the property is improved by a one- to four

family dwelling covered by a mortgage insured under title IV;

(2) the property involves a dwelling approved by the Secretary for mortgage insurance or approved by the Administrator of Veterans' Affairs for guaranty, in

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1 surance, or direct loan under chapter 37 of title 38,

tion, which was inspected by the Secretary or the Ad

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United States Code, prior to the beginning of construc

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ministrator during construction; and

(3) the owner of the property requests assistance from the Secretary not later than four years (or within such shorter period as the Secretary may prescribe) after the insurance of the mortgage.

(b) The Secretary is also authorized to make expendi10 tures, for any of the purposes specified in subsection (a), 11 with respect to structural or other defects which seriously 12 affect the use and livability of any single-family dwelling 13 which is covered by a mortgage insured under section 402 or is located in an older and declining area, and is more than

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one year old on the date of the issuance of the insurance com16 mitment, if (1) the owner requests assistance from the Sec

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retary not later than one year after the insurance of the mort18 gage, and (2) the defect is one that existed on the date of 19 the issuance of the insurance commitment and is one that a 20 proper inspection could reasonably be expected to disclose. 21 The Secretary may require from the seller of any such dwell22 ing an agreement to reimburse him for any payments made 23 pursuant to this subsection with respect to such dwelling.

(c) The Secretary is also authorized to expend available

funds to correct defects or failures (when he determines it

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1 necessary to protect the occupants) with respect to experi2 mental property covered by a mortgage insured under this 3 Act, at any time subsequent to insurance of the mortgage, 4 where he finds that the defects are caused by or related to 5 the advanced technology utilized.

6 (d) The Secretary shall by regulations prescribe the 7 terms and conditions upon which expenditures and payments

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may be made under the provisions of this section. His de9 cisions regarding such expenditures or payments, and the 10 term and conditions under which the expenditures and pay11 ments are approved or disapproved, shall be final and con12 clusive and shall not be subject to judicial review.

14 SEC. 705. (a) The Secretary is authorized to refuse the 15 benefits of participation (either directly as an insured lender 16 or as a borrower, or indirectly as a builder, contractor, or 17 dealer, or salesman or sales agent for a builder, contractor 18 or dealer) under any of the provisions of this Act to any 19 person or firm (including but not limited to any individual, 20 partnership, association, trust, or corporation) if the Secre21 tary has determined that such person or firm

(1) has knowingly or willfully violated any provision of this Act, of the National Housing Act, or of title III of the Servicemen's Readjustment Act of 1944,

or of chapter 37 of title 38, United States Code, or of

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any regulation issued by the Secretary under this Act or under the National Housing Act, or by the Adminis

trator of Veterans' Affairs under said title III, or chapter 37; or

(2) has, in connection with any construction, alteration, repair or improvement work financed with assistance under this Act or under the National Housing Act, or under said title III, or chapter 37, or in connection with contracts or financing relating to such work, violated any Federal or State penal statute; or

(3) has failed materially to properly carry out con12 tractual obligations with respect to the completion of

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construction, alteration, repair, or improvement work

financed with assistance under this Act or under the

National Housing Act, or under title III of the Serv

icemen's Readjustment Act of 1944, or of chapter 37 of title 38, United States Code.

(b) Before the determination prescribed in subsection 19 (a) is made, any person or firm with respect to which a

20 determination is proposed shall be notified in writing by the 21 Secretary and shall be entitled (upon making a written re

quest to the Secretary) to—

(1) a written notice specifying charges in reason

able detail; and

(2) an opportunity to be heard and to be represented by counsel.

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(c) Any person aggrieved by a determination of the 2 Secretary pursuant to this section may, within sixty days. 3 after notice of such determination, file a petition of review 4 in the Court of Appeals for the circuit in which the property 5 involved is located. Judicial review shall be confined to the 6 record made in the hearing before the Secretary and the 7 Secretary's findings of fact shall be conclusive if supported by 8 substantial evidence.

9 (d) For the purposes of compliance with this section, 10 the Secretary's notice of a proposed determination or a de11 termination under this section shall be considered to have 12 been received by the interested person or firm if the notice 13 is properly mailed to the last known address of such person 14 or firm.

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TRANSITION BETWEEN THE NATIONAL HOUSING ACT

AND THE REVISED NATIONAL HOUSING ACT

SEC. 102. The provisions of section 101 of this Act shall 18 be effective, in whole or in part, at such date or dates as the 19 Secretary of Housing and Urban Development shall pre20 scribe, and the Secretary shall establish procedures for the 21 orderly transfer of mortgage insurance operations from the 22 authority of the National Housing Act to the authority of 23 the Revised National Housing Act in order to assure con24 tinuity of efficient program activity and to provide adequate 25 opportunity for necessary administrative and legislative 26 revisions.