12 U.S.C. § 1715v — Insurance of mortgages for housing for elderly persons
submitted 92 years ago by Pub. L. 86-372 to r/title-12-BANKS-AND-BANKING · 1,434 words · no verdicts yet
This section authorizes mortgage insurance for housing designed partly for people age 62 or older. It defines the housing and sets limits, affordability-related controls, construction standards, and rental preferences.
(a) Purpose and definitions. The section seeks to relieve the shortage of housing for elderly people and increase rental housing for them. “Housing” means at least eight new or rehabilitated living units, at least half specially designed for elderly use. “Elderly person*” means a married or unmarried person age 62 or older. “Mortgage,” “mortgagee,” “mortgagor,” and “maturity date” have the meanings in section 1713. (b) Authorization. The Secretary may insure mortgages, including construction advances, on prescribed terms and may commit to insure before execution or disbursement. (c) Eligibility. (1) Repealed. (2) For dwelling portions, principal cannot exceed the listed per-unit amounts: $166,509 for no bedroom, $188,997 for one, $228,448 for two, $286,744 for three, and $324,922 for four or more. Elevator projects may use up to $179,854, $206,180, $250,708, $324,324, and $356,017 respectively. The Secretary may increase those limits by regulation up to 170 percent in areas requiring it, and up to 170 percent generally or 215 percent in high-cost areas project by project; an increase is capped at 90 percent when the specified Government National Mortgage Association purchase is involved. The Secretary may also increase them up to 20 percent for qualifying solar or residential energy-conservation costs added beyond minimum standards and cost-effective over the measure’s life. (3) If the borrower is a public instrumentality, private nonprofit, or another regulated or supervised acceptable nonprofit, principal cannot exceed the Secretary’s estimated completed replacement cost, including land, improvements, on-site utilities, architect fees, taxes, construction interest, and approved miscellaneous charges; for existing property it cannot exceed appraised value. (4) For another Secretary-approved borrower, principal cannot exceed 90 percent of estimated completed replacement cost for property approved before construction, including a 10-percent builder-and-sponsor profit and risk allowance, unless a lower percentage is prescribed as unreasonable; for existing property it cannot exceed 90 percent of estimated value. The Secretary may regulate rents or sales, charges, capital structure, return, and operations, and may buy up to $100 of stock or an interest for that purpose from the General Insurance Fund, to be redeemed at par when insurance obligations end. (5) The mortgage must fully amortize through periodic payments within Secretary-set terms. (6) Interest is agreed by borrower and mortgagee. (7) The property must be approved before construction or rehabilitation, at least half its units must be specially designed for elderly occupancy under Secretary standards, and it may include adequate commercial and special facilities. (d) Releases and rental preference. The Secretary may allow parts of the property to be released from the lien on prescribed terms and must establish procedures giving elderly people preference or priority to rent the dwellings. (e) Other law. Listed subsections of section 1713 apply, with references to section 1713 treated as references to this section. (f) Disabled families. The housing may include units and facilities specially designed for a person or family qualifying as a “handicapped family” under section 1701q. The Secretary may give such families preference or priority to rent units specially designed for them.
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—
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;
the term “elderly person*” means any person, married or single, who is sixty-two years of age or over; and
the terms “mortgage”, “mortgagee”, “mortgagor”, and “maturity date” shall have the meanings respectively set forth in section 1713 of this title.
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.
To be eligible for insurance under this section, a mortgage to provide housing for elderly persons shall—
Repealed. Pub. L. 93–383, title III, § 304(f), Aug. 22, 1974, 88 Stat. 678.
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), $166,509 per family unit without a bedroom, $188,997 per family unit with one bedroom, $228,448 per family unit with two bedrooms, $286,744 per family unit with three bedrooms, and $324,922 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 $179,854 per family unit without a bedroom, $206,180 per family unit with one bedroom, $250,708 per family unit with two bedrooms, $324,324 per family unit with three bedrooms, and $356,017 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 170 percent in any geographical area where the Secretary finds that cost levels so require and by not to exceed 170 percent, or 215 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;
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;
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;
provide for a complete amortization by periodic payments (unless otherwise approved by the Secretary) within such terms as the Secretary shall prescribe;
bear interest at such rate as may be agreed upon by the mortgagor and the mortgagee; and
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.
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.
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.
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 1 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.
Source credit: (June 27, 1934, ch. 847, title II, § 231, as added Pub. L. 86–372, title II, § 201(a), Sept. 23, 1959, 73 Stat. 665; amended Pub. L. 87–70, title VI, § 612(m), June 30, 1961, 75 Stat. 183; Pub. L. 88–560, title I, § 107(e), title II, § 203(c), Sept. 2, 1964, 78 Stat. 776, 784; Pub. L. 89–117, title II, § 207(e), title XI, § 1108(l), Aug. 10, 1965, 79 Stat. 467, 505; Pub. L. 90–19, § 1(a)(3), (4), May 25, 1967, 81 Stat. 17; Pub. L. 90–301, § 3(d), May 7, 1968, 82 Stat. 114; Pub. L. 91–152, title I, § 113(g), Dec. 24, 1969, 83 Stat. 384; Pub. L. 93–383, title III, §§ 303(f), 304(f), Aug. 22, 1974, 88 Stat. 677, 678; Pub. L. 94–173, § 3, Dec. 23, 1975, 89 Stat. 1027; Pub. L. 94–375, § 8(a), (b)(6), Aug. 3, 1976, 90 Stat. 1071, 1072; Pub. L. 96–153, title III, § 314, Dec. 21, 1979, 93 Stat. 1117; Pub. L. 96–399, title III, § 310(e), Oct. 8, 1980, 94 Stat. 1642; Pub. L. 97–35, title III, § 339B(a), Aug. 13, 1981, 95 Stat. 417; Pub. L. 97–377, title I, § 101(g), Dec. 21, 1982, 96 Stat. 1908; Pub. L. 98–181, title I [title IV, §§ 404(b)(9), 446(e)], Nov. 30, 1983, 97 Stat. 1209, 1228; Pub. L. 100–242, title IV, § 426(f), (h), Feb. 5, 1988, 101 Stat. 1916; Pub. L. 102–550, title V, § 509(f), Oct. 28, 1992, 106 Stat. 3783; Pub. L. 107–73, title II, § 213(f), Nov. 26, 2001, 115 Stat. 677; Pub. L. 107–326, § 5(b)(6), Dec. 4, 2002, 116 Stat. 2795; Pub. L. 108–186, title III, § 302(b), Dec. 16, 2003, 117 Stat. 2692; Pub. L. 110–161, div. K, title II, § 221(1), Dec. 26, 2007, 121 Stat. 2436; Pub. L. 119–101, title II, § 211(a)(6), July 11, 2026, 140 Stat. 883.)
- 1934Enacted · Pub. L. 86-372 · 73 Stat. 665
- 1961Amended · Pub. L. 87-70 · 75 Stat. 183
- 1964Amended · Pub. L. 88-560 · 78 Stat. 776, 784
- 1965Amended · Pub. L. 89-117 · 79 Stat. 467, 505
- 1967Amended · Pub. L. 90-19 · 81 Stat. 17
- 1968Amended · Pub. L. 90-301 · 82 Stat. 114
- 1969Amended · Pub. L. 91-152 · 83 Stat. 384
- 1974Amended · Pub. L. 93-383 · 88 Stat. 677, 678
- 1975Amended · Pub. L. 94-173 · 89 Stat. 1027
- 1976Amended · Pub. L. 94-375 · 90 Stat. 1071, 1072
- 1979Amended · Pub. L. 96-153 · 93 Stat. 1117
- 1980Amended · Pub. L. 96-399 · 94 Stat. 1642
- 1981Amended · Pub. L. 97-35 · 95 Stat. 417
- 1982Amended · Pub. L. 97-377 · 96 Stat. 1908
- 1983Amended · Pub. L. 98-181 · 97 Stat. 1209, 1228
- 1988Amended · Pub. L. 100-242 · 101 Stat. 1916
- 1992Amended · Pub. L. 102-550 · 106 Stat. 3783
- 2001Amended · Pub. L. 107-73 · 115 Stat. 677
- 2002Amended · Pub. L. 107-326 · 116 Stat. 2795
- 2003Amended · Pub. L. 108-186 · 117 Stat. 2692
- 2007Amended · Pub. L. 110-161 · 121 Stat. 2436
- 2026Amended · Pub. L. 119-101 · 140 Stat. 883
A history note hasn’t been published yet. The record shows enactment by Pub. L. 86-372 on 1934-06-27.
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