Page:United States Statutes at Large Volume 62 Part 1.djvu/1301

 62 STAT.] 80TH CONG. , 2D SESS. -CH. 832-AUG. 10, 1948 first resale, within two years from the date of its acquisition from the Government, of any portion of a project or property which is the security for a mortgage insured pursuant to the provisions of this section." (f) Title VI is amended by adding after section 610 the following new section: "SEC. 611. (a) In addition to mortgages insured under other sections of this title, and in order to assist and encourage the application of cost-reduction techniques through large-scale modernized site con- struction of housing and the erection of houses produced by modern industrial processes, the Administrator is authorized to insure mort- gages (including advances on such mortgages during construction) which are eligible for insurance as hereinafter provided. "(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 Administrator as responsible and able to service the mort- gage properly; "(2) cover property, held by a mortgagor approved by the Administrator, upon which there is to be constructed or erected dwelling units for not less than twenty-five families consisting of a group of single-family dwellings approved by the Adminis' trator for mortgage insurance prior to the beginning of construc- tion: Provided,That during the course of construction there may be located upon the mortgaged property a plant for the fabrication or storage of such dwellings or sections or parts thereof, and the Administrator may consent to the removal or release of such plant from the lien of the mortgage upon such terms and con- ditions as he may approve; "(3) involve a principal obligation in an amount- "(A) not to exceed 80 per centum of the amount which the Administrator estimates will be the value of the completed property or project, exclusive of any plant of the character described in paragraph (2) of this subsection located thereon, and "(B) not to exceed a sum computed on the individual dwellings comprising the total project as follows: $6,000 or 80 per centum of the valuation, whichever is less, with respect to each single-family dwelling. "With respect to the insurance of advances during construction, the Administrator is authorized to approve advances by the mort- gagee to cover the cost of materials delivered upon the mortgaged property and labor performed in the fabrication or erection thereof; "(4) provide for complete amortization by periodic payments within such term as the Administrator shall prescribe 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: Provided, That the Admin- istrator, with the approval of the Secretary of the Treasury, may prescribe by regulation a higher maximum rate of interest, not exceeding 41/2 per centum per annum on the amount of the principal obligation outstanding at any time, if he finds that the mortgage market demands it. The Administrator 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. "(c) Preference or priority of opportunity in the occupancy of the mortgaged property for veterans of World War II and their imme- diate families and for hardship cases as defined by the Administrator 1271 55 Stat. 55; 61 Btat. 777. 12U. .C.;1736- 1743; Supp. I, I§ 1737, 1738, 1744, 1745. Ante, pp. 101, 1268; post, p. 1273 . Large-acale projects. Eligibility for In- surance. Storage plant. Higher maximum interest rate. Release of property from lien, etc. Veterans' dwae.

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