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U.S. Code as of:
01/19/04
Section 1715v. Insurance of mortgages for housing for elderly persons
(a) Purpose; definitions
The purpose of this section is to assist in relieving the
shortage of housing for elderly persons and to increase the supply
of rental housing for elderly persons.
For the purposes of this section -
(1) the term "housing" means eight or more new or rehabilitated
living units, not less than 50 per centum of which are specially
designed for the use and occupancy of elderly persons;
(2) the term "elderly person" means any person, married or
single, who is sixty-two years of age or over; and
(3) the terms "mortgage", "mortgagee", "mortgagor", and
"maturity date" shall have the meanings respectively set forth in
section 1713 of this title.
(b) Authorization
The Secretary is authorized to insure any mortgage (including
advances on mortgages during construction) in accordance with the
provisions of this section upon such terms and conditions as he may
prescribe and to make commitments for insurance of such mortgages
prior to the date of their execution or disbursement thereon.
(c) Eligibility for insurance; maximum amount of mortgage; terms
and conditions
To be eligible for insurance under this section, a mortgage to
provide housing for elderly persons shall -
(1) Repealed. Pub. L. 93-383, title III, Sec. 304(f), Aug. 22,
1974, 88 Stat. 678.
(2)(A) 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 Secretary), $35,978 per family
unit without a bedroom, $40,220 per family unit with one bedroom,
$48,029 per family unit with two bedrooms, $57,798 per family
unit with three bedrooms, and $67,950 per family unit with four
or more bedrooms; except that as to projects to consist of
elevator-type structures the Secretary may, in his discretion,
increase the dollar amount limitations per family unit to not to
exceed $40,876 per family unit without a bedroom, $46,859 per
family unit with one bedroom, $56,979 per family unit with two
bedrooms, $73,710 per family unit with three bedrooms, and
$80,913 per family unit with four or more bedrooms, as the case
may be, to compensate for the higher costs incident to the
construction of elevator-type structures of sound standards of
construction and design; (B) the Secretary may, by regulation,
increase any of the dollar limitations in subparagraph (A) (as
such limitations may have been adjusted in accordance with
section 1712a of this title) by not to exceed 140 percent in any
geographical area where the Secretary finds that cost levels so
require and by not to exceed 140 percent, or 170 percent in high
cost areas, where the Secretary determines it necessary on a
project-by-project basis, but in no case may any such increase
exceed 90 percent where the Secretary determines that a mortgage
purchased or to be purchased by the Government National Mortgage
Association in implementing its special assistance functions
under section 1720 (!1) of this title (as such section existed
immediately before November 30, 1983) is involved; (C) the
Secretary may, by regulation, increase any of the dollar
limitations in subparagraph (A) (as such limitations may have
been adjusted in accordance with section 1712a of this title) by
not to exceed 20 per centum if such increase is necessary to
account for the increased cost of the project due to the
installation therein of a solar energy system (as defined in
subparagraph (3) of the last paragraph of section 1703(a) of this
title) or residential energy conservation measures (as defined in
section 8211(11)(A) through (G) and (I) of title 42) (!1) in
cases where the Secretary determines that such measures are in
addition to those required under the minimum property standards
and will be cost-effective over the life of the measure;
(3) if executed by a mortgagor which is a public
instrumentality or a private nonprofit corporation or association
or other acceptable private nonprofit organization regulated or
supervised under Federal or State laws or by political
subdivisions of States, or agencies thereof, or by the Secretary
under a regulatory agreement or otherwise, as to rents, charges,
and methods of operation, in such form and in such manner as, in
the opinion of the Secretary, will effectuate the purpose of this
section, involve a principal obligation not in excess of the
amount which the Secretary estimates will be 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 Secretary): Provided, That in
the case of properties other than new construction, the principal
obligation shall not exceed the appraised value rather than the
Secretary's estimate of the replacement cost;
(4) if executed by a mortgagor which is approved by the
Secretary but is not a public instrumentality or a private
nonprofit organization, involve a principal obligation not in
excess (in the case of a property or project approved for
mortgage insurance prior to the beginning of construction) of 90
per centum of the amount which the Secretary estimates will be
the replacement cost of the property or project when the proposed
improvements are completed (the replacement costs 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 Secretary, and shall include an
allowance for builder's and sponsor's profit and risk of 10 per
centum of all of the foregoing items except the land unless the
Secretary, after certification that such allowance is
unreasonable, shall by regulation prescribe a lesser percentage):
Provided, That in the case of properties other than new
construction the principal obligation shall not exceed 90 per
centum of the Secretary's estimate of the value of the property
or project: And provided further, That the Secretary may in his
discretion require such mortgagor to be regulated or restricted
as to rents or sales, charges, capital structure, rate of return,
and methods of operating, and for such purpose the Secretary may
make contracts with and acquire for not to exceed $100 such stock
or interest in any such mortgagor as the Secretary may deem
necessary to render effective such restrictions or regulations;
such stock or interest shall be paid for out of the General
Insurance Fund and shall be redeemed by the mortgagor at par upon
the termination of all obligations of the Secretary under the
insurance;
(5) provide for a complete amortization by periodic payments
(unless otherwise approved by the Secretary) within such terms as
the Secretary shall prescribe;
(6) bear interest at such rate as may be agreed upon by the
mortgagor and the mortgagee; and
(7) cover a property or project which is approved for mortgage
insurance prior to the beginning of construction or
rehabilitation, with 50 per centum or more of the units therein
specially designed for the use and occupancy of elderly persons
in accordance with standards established by the Secretary, and
which may include such commercial and special facilities as the
Secretary deems adequate to serve the occupants.
(d) Release of part of mortgaged property or project from lien;
preferences and priorities in rental of dwellings
The Secretary may consent to the release of a part or parts of
the mortgaged property or project from the lien of any mortgage
insured under this section upon such terms and conditions as he may
prescribe, and shall prescribe such procedures as in his judgment
are necessary to secure to elderly persons a preference or priority
of opportunity to rent the dwellings included in such property or
project.
(e) Applicability of other laws
The provisions of subsections (d), (e), (g), (h), (i), (j), (k),
(l), and (n) of section 1713 of this title shall apply to mortgages
insured under this section and all references therein to section
1713 of this title shall refer to this section.
(f) Handicapped family units and facilities; rental preference or
priority
Notwithstanding any of the provisions of this section, the
housing provided under this section may include family units which
are specially designed for the use and occupancy of any person or
family qualifying as a handicapped family as defined in section
1701q (!2) of this title, and such special facilities as the
Secretary deems adequate to serve handicapped families (as so
defined). The Secretary may also prescribe procedures to secure to
such families preference or priority of opportunity to rent the
living units specially designed for their use and occupancy.
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