Page:United States Statutes at Large Volume 70.djvu/1149

 70

STAT.]

PUBLIC LAW 1020-AUG. 7, 1956

as may be attributable to dwelling use and not in excess of 90 per centum of the amount which the Commissioner estimates will be the replacement cost of such property or project when the proposed physical improvements are completed: Provided, That the Commissioner shall prescribe such procedures as in his judgment are necessary to secure to elderly persons priorities in occupany of the units designed for their use." (d) The Housing and Home Finance Administrator shall establish, in accordance with the provisions of section 601 of the Housing Act of 1949, as amended, an advisory committee on matters relating to housing for elderly persons.

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COOPERATIVE HOUSING INSURANCE

SEC. 105. (a) Section 213(a) of the National Housing Act is amended— (1) by striking out "or" at the end of paragraph (1); (2) by inserting "or" at the end of paragraph (2); (3) by adding after paragraph (2) the following new paragraph: "(3) a mortgagor, approved by the Commissioner, which (A) has certified to the Commissioner, as a condition of obtaining the insurance of a mortgage under this section, that upon completion of the property or project covered by such mortgage it intends to sell such property or project to a nonprofit corporation or nonprofit trust of the character described m paragraph (1) of this subsection at the actual cost of such property or project as certified pursuant to section 227 of this Act and will faithfully and diligently make and carry out all reasonable efforts to consummate such sale, and (B) shall be regulated or restricted by the Commissioner as to rents, charges, capital structure, rate of return, and methods of operation during any period while it holds the mortgaged property or project; and for such purpose the Commissioner may make such contracts with, and acquire for not to exceed $100 such stock or interest in, any such mortgagor as the Commissioner may deem necessary to render effective such restriction or regulation, such stock or interest to be paid for out of the Housing Fund and to be redeemed by such mortgagor at par upon the sale of such property or project to such nonprofit corporation or nonprofit t r u s t; "; and (4) by adding "referred to in paragraphs (1) and (2) of this subsection" after "which corporations or trusts". (b) Section 213(b)(2) of such Act is amended— (1) by striking out "65 per centum" and inserting in lieu thereof "50 per centum"; (2) by amending the last proviso to read as follows: ": And provided further, That for the purposes of this section the word 'veteran' shall mean a person who has served in the active military or naval service of the United States at any time on, or after April 6, 1917, and prior to November 12, 1918, or on or after September 16, 1940, and prior to July 26, 1947, or on or after June 27, 1950, and prior to February 1, 1955"; and (3) by inserting immediately after "$8,900" a semicolon and the following: "except that the Commissioner may, by regulation, increase any of the foregoing dollar amount limitations per room contained in this paragraph by not to exceed $1,000 per room in any geographical area where he finds that cost levels so require: Provided further, That in the case of a mortgagor of the character described in paragraph (3) of subsection (a) the mortgage shall

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