Page:United States Statutes at Large Volume 79.djvu/503

 79

STAT.]

PUBLIC LAW

89-117-AUGUST

10, 1965

"(3) contain such terms and provisions with respect to protection of the security, payment of taxes, delinquency charges, prepayment, additional and secondary liens, and other matters as the Commissioner may in his discretion prescribe. "(e) A property or project to be financed by a mortgage insured under this title shall— " (1) represent a good mortgage insurance risk; and "(2) involve improvements that comply with all applicable State and local governmental requirements and with minimum standards approved by the Commissioner. "LAND PLANNING

"SEC. 1003. (a) The land development covered by a mortgage insured under this title shall be undertaken pursuant to a schedule, conforming to such requirements and procedures as the Commissioner may prescribe, that will assure the use of the land for the purposes for which it is to be developed within the shortest reasonable period consistent with the objectives of sound and economic community growth or urban development. " (b) The land development shall be undertaken in accordance with an overall development plan, appropriate to the scope and character of the undertaking, which— " (1) has received all governmental approvals required by State or local law or by the Commissioner; • " (2) is acceptable to the Commissioner as providing reasonable assurance that the land development will contribute to good living conditions in the area being developed, which area (A^ will have a sound economic base and a long economic life, (B) will be characterized by sound land-use patterns, and (C) will include or be served by such shopping, school, recreational, transportation, and other facilities as the Commissioner deems adequate or necessary; and "(3) is consistent with a comprehensive plan which covers, or with comprehensive planning being carried on for, the area in which the land is situated, and which meets criteria established by the Housing and Home Finance Administrator for such plans or planning. u ENCOURAGEMENT OF SMALL BUILDERS AND MODERATE COST HOUSING

"SEC. 1004. The Commissioner shall adopt such requirements as he deems necessary in land development covered by mortgages insured under this title to encourage the maintenance of a diversified local homebuilding industry, b r o ^ participation by builders, and the inclusion of a proper balance of housing for families of moderate or low income. "WATER

A N D S E W E R A G E FACILITIES

" S E C 1005. After development of the land it shall be served by public systems for water and sewerage which are consistent with other existing or prospective systems within the area, except that the Commissioner may approve an adequate privately or cooperatively owned system which will be regulated in a manner acceptable to him with respect to user rates and charges, capital structure, methods of operation, rate of return, and conditions and terms of any sale or transfer.

463

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