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PUBLIC LAW 560-AUG. 2, 1954

Public Law 560

[68 S T A T.

CHAPTER 649 AN ACT

August 2, 1954 [H. R. 7839]

To aid in the provision and impfovement of housing, the elimination and prevention of slums, and the conservation and development of urban communities.

Be it enacted by the Senate and House of Representatives of the ^ jHousing Act of United States of America in Congress assembled, That this Act ma.y bt cited as the "Housing Act of 1954". TITLE I—FEDERAL HOUSING ADMINISTRATION AMENDMENTS OF TITLE I OF NATIONAL HOUSING ACT Insurance of f i n a n c i a l institutions. 48 Stat. 1246. 12 USC 1703. Improvement and repair loans.

SEC. 101. (a) Section 2(a) of the National Housing Act, as amended, is hereby amended— (1) by striking out the period at the end of the second sentence and by inserting a colon and the following: Provided, That with respect to any loan, advance of credit, or purchase made after the effective date of the Housing Act of 1954, the amount of any claim for loss on any such individual loan, advance of credit, or purchase paid by the Commissioner under the provisions of this section to a lending institution shall not exceed 90 per centum of such loss."; and (2) by inserting at the end thereof the following: Restriction. "After the effective date of the Housing Act of 1954, (i) the Commissioner shall not enter into contracts for insurance pursuant to this section except with lending institutions which are subject to the inspection and supervision of a governmental agency required by law to make periodic examinations of their books and accounts, and which the Commissioner finds to be qualified by experience or facilities to make and service such loans, advances or purchases, and with such other lending institutions which the Commissioner approves as eligible for insurance pursuant to this section on the basis of their credit and their experience or facilities to make and service such loans, advances or purchases; (ii) only such items as substantially protect or improve the basic livability or utility of properties shall be eligible for financing under this section, and therefore the Commissioner shall from time to time declare ineligible for financing under this section any item, product, alteration, repair, improvement, or class thereof which he determines would not substantially protect or improve the basiic livability or utility of such properties, and he may also declare ineligible for financing under this section any item which he determines is especially subject to selling abuses; and (iii) the Commissioner is hereby authorized and directed, by such regulations or procedures as he shall deem advisable, to prevent the use of any financial assistance under th,is section (1) with respect to new residential structures that have not been completed and occupied for at least six months, or (2) which would, through multiple loans, result in an outstanding aggregate loan balance with respect to the same structure exceeding the dollar amount limitation prescribed in this subsection for the type of loan involved." Effective date. (b) As used in the amendments made by subsection (a) of this section "effective date of the. Housing Act of 1954" shall mean the first day after the first full calendar.month following the date of approval of the Housing Act of 1954. 12 USC 1703. SEC. 102. Section 2(f) of said Act, as amended, is hereby amended Title I C l a i m s Account, ^ermlne^ by adding the following at the end thereof: "The account heretofore established in connection with insurance operations under this section

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