mum requirements designed to improve the living conditions of the occupants.

(b) This program is authorized under Title II, section 207 of the National Housing Act and governed by regulations contained in Part 207 of this chapter.

URBAN RENEWAL INSURANCE

§ 200.32 Residential rehabilitation.

(a) In urban renewal areas, the FHA insures mortgages on dwellings designed principally for residential use by not more than 11 families and on multifamily rental projects. The mortgages may be for financing the rehabilitation of existing salvable housing (including the refinancing or existing indebtedness) or for the replacement of slums with new housing. Insurance on multifamily project mortgages may include coverage of construction ad

vances.

(b) The determination of maximum mortgage is governed by the following:

(1) On a 1- to 11-family dwelling the mortgage is limited to the lesser of a dollar limitation, governed by the number of residences in the dwelling, or a ratio of loan to the estimated replacement cost established under a statutory formula. Where rehabilitation is involved, an additional adjustment in the maximum mortgage is made on the basis of the estimated cost of rehabilitation and the estimated value of the property prior to rehabilitation. Where refinancing is involved, a further adjustment is made on the basis of the amount required to pay off the outstanding indebtedness. (2) On a multifamily project, the mortgage is limited to the lesser of:

(i) A dollar amount.

(ii) An amount computed under a statutory formula based on a ratio the loan bears to the replacement cost of the property with an additional adjustment made where the project involves rehabilitation and/or refinancing. Where rehabilitation is involved, the mortgage is adjusted on the basis of the estimated cost of rehabilitation and the estimated value of the property prior to rehabilitation. Where refinancing is involved, a further adjustment is made on the basis of the

amount required to pay off the outstanding indebtedness.

(iii) An amount based on the number of bedrooms in each dwelling unit.

(c) This program is authorized under Title II, section 220 of the National Housing Act and governed by regulations contained in Part 220 of this chapter.

LOW AND MODERATE INCOME HOUSING

§ 200.33 Low cost homes and moderate income projects.

(a) The FHA insures mortgages on low cost homes for low and moderate income families with special terms available to families displaced from an urban renewal area, or as a result of governmental action, or as a result of a disaster determined by the President to be a major disaster. Also, mortgages are insured by the FHA, including construction advances, on projects for moderate income families involving profit, nonprofit, public, limited distribution and cooperative mortgagors. Projects must be located in a community which the Secretary of Housing and Urban Development has approved and certified to the FHA as having a workable program designed to eliminate slums and prevent the spread of urban blight. Projects meeting special criteria may be insured at a below market interest rate. Eligibility for occupancy of a project financed with a below market interest rate mortgage is limited to families and elderly or handicapped individuals having an income below the income ceiling established by the Commissioner for the area in which the project is located.

(b) The maximum mortgage on a low cost home is limited to the lesser of the value of the property or a dollar amount which depends on whether a one-, two-, three- or four-family residence is involved. Where rehabilitation is involved, an additional adjustment in the maximum mortgage is made on the basis of the estimated cost of rehabilitation and the estimated value of the property prior to rehabilitation. The maximum mortgage on a multifamily project is limited to the lesser of:

(1) A dollar amount.

(2) An amount computed under a statutory formula based on a ratio the loan bears to the replacement cost of the property with an additional adjustment made where the project involves rehabilitation. In such instances, the mortgage is limited to the estimated cost of rehabilitation plus the estimated value of the property prior to rehabilitation.

(3) An amount based on the number of bedrooms in each dwelling unit.

(c) This program is authorized under title II, section 221 of the National Housing Act and governed by regulations contained in Part 221 of this chapter.

PUBLICLY CONSTRUCTED HOUSING INSURANCE

§ 200.34 Miscellaneous type mortgages.

The FHA insures mortgages financing purchases of certain types of permanent housing sold by Federal and State Governments, including the first resale. This program is authorized under Title II, section 223 of the National Housing Act and governed by regulations set out in connection with each of the applicable insurance programs.

EXPERIMENTAL HOUSING INSURANCE

§ 200.35 Experimental housing.

(a) The FHA insures mortgages on home and multifamily properties that incorporate new or untried construction concepts aimed at reducing housing costs, raising living standards, quality, livability or durability, or improving neighborhood design. The program contemplates the utilization and testing of advanced technology in housing design, materials, or products so as to contribute to the foregoing objectives. Mortgages or improvement loans that meet the eligibility requirements for insurance under any of the various FHA title II home or project mortgage programs may be eligible for insurance under the experimental housing section of the Act, provided the proposed construction meets applicable eligibility and property standards for the section of the Act under which it is to be processed. The maximum mortgage cannot exceed

an

amount computed under a statutory formula based on a ratio the loan bears to the estimated cost of replacing the property using comparable conventional design, materials and construction.

(b) This program is authorized under section 233 of the National Housing Act and governed by the regulations contained in Part 233 of this chapter.

PROPERTY IMPROVEMENT LOAN
INSURANCE

§ 200.38 Title I improvement loans.

(a) The FHA insures financial institutions against loss on short term loans (5 to 7 years) made to finance alterations, repairs and improvements to existing structures and the building of small new structures for nonresidential use. To be eligible, the existing structures must have been completed at least 90 days prior to the loan application.

(b) This program is authorized under title I, section 2 of the National Housing Act and governed by regulations contained in Part 201 of this chapter.

§ 200.39 Other improvement loans.

(a) The FHA insures financial institutions against loss on long-term (20year) loans made to finance the repair, restoration, rehabilitation, conversion, alteration, enlargement or remodeling of individual homes or multifamily structures. To be eligible, the structures must be not less than 10 years old, except where the loan is to be used for major structural improvements or to correct defects not known at the time of completion of the structure or where the structure has been damaged by fire, flood, windstorm, or other casualty. The loans may also be used by a borrower to pay municipal assessments for public improvements adjacent to or in the vicinity of the borrower's property. The loan amount is basically limited to the estimated cost of the improvements or a dollar maximum amount per family unit. There is an additional limitation on the loan amount based on the lesser of the following:

group of associated Area and/or Insuring Offices as established by the Department of Housing and Urban Development. Within each Region an Assistant Regional Administrator for Housing Production and Mortgage Credit (HPMC) directs and evaluates, on behalf of the Regional Administrator, all HPMC-FHA functions and responsibilities falling within his jurisdiction.

[39 FR 34656, Sept. 27, 1974]

§ 200.44 Area and/or Insuring Office Directors.

Each of the Area or Insuring Offices within a region is managed and supervised by a Director who is responsible to the Regional Administrator for the administration, within a defined geographic area, of all HPMC-FHA functions and responsibilities including the administration of various service offices or valuation stations established within his defined geographical area. Each such Director is empowered to exercise any and all authorities delegated to any subordinate.

[39 FR 34656, Sept. 27, 1974]

Subpart D-Delegations to Particular Positions

DELEGATIONS TO PARTICULAR POSITIONS

§ 200.50 Authority for delegations.

(a) Section 5(a) of the Department of Housing and Urban Development Act (79 Stat. 667) transferred to and vested in the Secretary all of the functions, powers, and duties of the Federal Housing Commissioner and the Federal Housing Administration which existed prior to November 9, 1965.

(b) Section 1 of title I of the National Housing Act, the authority under which the Commissioner and the Federal Housing Administration operated prior to November 9, 1965, provides in part as follows:

* In order to carry out the provisions of this title and titles II, III, VI, VII, VIII, IX, and X, the Commissioner may establish such agencies, accept and utilize such voluntary and uncompensated services, utilize such Federal officers and employees, and, with the consent of the State, such State

and local officers and employees, and appoint such other officers and employees as he may find necessary, and may prescribe their authorities, duties, responsibilities,

*. The Commissioner may delegate any of the functions and powers conferred upon him under this title and titles II, III, VI, VII, VIII, IX, and X to such officers, agents and employees as he may designate or appoint

(c) Section 7(d) of the Department of Housing and Urban Development Act (79 Stat. 667) provides in part as follows:

The Secretary may delegate any of his functions, powers, and duties to such officers and employees of the Department as he may designate, may authorize such successive redelegations of such functions, powers, and duties as he may deem desirable, and may make such rules and regulations as may be necessary to carry out his functions, powers, and duties *

(d) Interim Order II effective January 18, 1966, (31 FR 815) provides in part as follows: The offices or positions and organizational units in the Department shall include, in addition to those otherwise prescribed:

Each officer or employee appointed to, or designated to act in, the office or position listed immediately above, and each organizational unit so listed is hereby authorized to exercise the functions, powers, and duties vested in, or delegated or assigned to, the office or position or officer or employee or organizational unit having the same title immediately prior to the effective date of the Act, and to redelegate and authorize successive redelegations of such authority to the extent empowered under authority vested, delegated, or assigned immediately prior to the effective date of the Act. Authority delegated herein or redelegated hereunder shall be exercised in the name of the Secretary, except that authority delegated to the Federal Housing Commissioner or the Public Housing Commissioner may be exercised in the name of the Federal Housing Commissioner or the Federal Housing Administration, respectively,

and any actions taken under this delegation or a redelegation hereunder by or in the name of the Federal Housing Commissioner, Federal Housing Administration, shall be deemed to be the action of the Secretary.

(e) Section 207 of the Appalachian Regional Development Act of 1965 authorizes the Secretary of Housing and Urban Development to make loans and grants, under such terms and conditions as he may prescribe, to nonprofit, limited dividend, or cooperative organizations, or to public bodies, for expenses of planning and of obtaining an insured mortgage for a housing construction or rehabilitation project, under section 221 or 236 of the National Housing Act, in any area of the Appalachian region determined by the Appalachian Regional Commission to have significant potential for future growth. The Assistant Secretary-Federal Housing Commissioner, is, by delegation of authority from the Secretary, authorized to execute the powers and functions vested in the Secretary by section 207 of the Appalachian Regional Development Act of 1965, as amended, and is further authorized to redelegate to one or more employees under his jurisdiction any of the authority delegated by the Secretary and to authorize successive delegation thereof.

[36 FR 24467, Dec. 22, 1971, as amended at 39 FR 34656, Sept. 27, 1974]

§§ 200.51-200.84a [Reserved]

§ 200.84b Regional Administrators, Deputies and Assistants.

To the position of Regional Administrator, and to each of them; and to the position of Deputy Regional Administrator and to each of them under the general supervision of the Regional Administrator having jurisdiction; and to the position of Assistant Regional Administrator for Housing Production and Mortgage Credit, and to each of them under the general supervision of the Regional Administrator there is delegated the basic authority and function to direct and supervise within the geographical area under his jurisdiction all activities assigned at Head

(a) Members. The committee called the Executive Board is composed of the following members: Assistant Secretary-Federal Housing Commissioner, Chairman; Deputy Assistant Secretary-Deputy Federal Housing Commissioner, Vice Chairman; Executive Assistant Commissioner; Director, Office of Policy and Program Analysis and Development; Director, Office of Management Systems; Director, Office of Underwriting Standards; Director, Office of Field Support; Director, Publicly Financed Housing Division and Director, Property Improvement and Mobile Homes Division.

(b) Functions. The functions of the Executive Board are to consider and advise with respect to basic policy, plans and general program matters of Housing Production and Mortgage Credit and the Federal Housing Administration.

[39 FR 34659, Sept. 27, 1974]

§ 200.89 Substantial Compliance Committee.

(a) Members. The Substantial Compliance Committee is composed of the following members: Director, Property Improvement and Mobile Homes Division, Chairman; a designee of the Director, Office of Policy and Program Analysis and Development; a designee of the Director, Office of Management Systems including a representative of the Office of Finance and Accounting (by agreement with the Assistant Secretary for Administration), and a representative of the Assistant Secretary for Housing Management; and such other members as the Assistant Secretary-Federal Housing Commissioner may designate.

(b) Functions. The functions of the Substantial Compliance Committee are to waive compliance with regulations heretofore or hereafter prescribed with respect to the interest and maturity of, and the terms, condi

tions, and restrictions under which loans, advances of credit, and purchases may be insured under section 2 of title I of the National Housing Act if, in the judgment of the committee, the enforcement of such regulations would impose an injustice upon an insured institution which has substantially complied with such regulations in good faith and has refunded or credited any excess charge made, and if such waiver does not involve an increase of the obligation which would have been involved if the regulations had been fully complied with.

[39 FR 34659, Sept. 27, 1974]

§ 200.92

Structural Defects Committee.

(a) Members. The Structural Defects Committee is composed of the following members or their designees: Director, Office of Underwriting Standards, Chairman; Director, Single Family Underwriting Division; Director, Multifamily Underwriting Division; Director, Office of Field Support: Director, Office of Management Systems; including a representative of the Director, Mortgage Insurance Accounting (by agreement with the Assistant Secretary for Administration) and a representative of the Office of General Counsel and such other members as the Assistant Secretary-Federal Housing Commissioner may designate.

(b) Functions. The functions of the Structural Defects Committee are to take appropriate action in exceptionally difficult or questionable cases relating to expenditures to correct or compensate for structural or other defects which seriously affect the use and livability of a house financed with an insured mortgage following established guidelines pursuant to section 518 of the National Housing Act. The Committee also acts in an advisory capacity in the establishment of guidelines for the processing by production personnel of claims under section 518 of the National Housing Act.

[39 FR 34660, Sept. 27, 1974]

§ 200.93 Multifamily Participation Review

Committee.

(a) Members. The Multifamily Participation Review Committee is com