148 1 ADDITIONAL AUTHORIZATIONS FOR COLLEGE HOUSING DEBT 2 SERVICE GRANTS 3 SEC. 604. Section 401 (f) (2) of the Housing Act of 4 1950 is amended by inserting before the period at the end 5 thereof ", and by such sums as may be necessary thereafter". 6 7 NATIONAL BANKING ACT SEC. 605. Section 5136 of the Revised Statutes (12 8 U.S.C. 24) is amended by inserting "or obligations guaran9 teed by the Secretary under the New Communities Act of 1968" immediately following "Government National Mortgage Association,". 11 12 13 14 15 16 INCREASED FEES FOR CONSULTANT SERVICES SEC. 606. Section 7 (e) of the Department of Housing and Urban Development Act is amended by striking out everything after the word "rates" and inserting in lieu thereof the following: "for individuals not to exceed the per diem 17 equivalent to the highest rate for grade GS-18 of the General Schedule under section 5332 of title 5, United States Code." EFFECTIVE DATE SEG. 607. The provisions of titles I, II, and III of this Act shall be effective not later than one hundred and eighty days following the date of enactment of this Act, except as the Secretary of Housing and Urban Development shall prescribe an earlier effective date with respect to all or any part of such titles. SECTION 3-FLEXIBLE MORTGAGE AMOUNTS This section would provide, in lieu of the various statutory dollar limitations on maximum mortgage amounts contained in the National Housing Act, (e.g. sections 203, 207, 221, etc.) a flexible formula to be used by the Secretary in periodically establishing maximum mortgage amounts for home and multifamily mortgages insured under the Act. With respect to multifamily projects, the mortgage limits established pursuant to this section would be per unit limitations. There would be no overall dollar limit on project mortgage amount. (Sections 207, 221, etc. presently contain both a per unit and per project maximum insurable mortgage amount). Subsection (a) would limit the insurance of any mortgage under the subsidized homeownership and rental programs (sections 402 and 502 of the Act) to properties the cost of which does not exceed by more than 10 percent the "development cost" established by the Secretary for the "housing market area" in which the property covered by the mortgage is located. For multifamily structures, the limitation on mortgage amount would be based on the sum of the development cost figures applicable to the various sized units in the project and would be applicable only to that part of the mortgage attributable to the portion of the property to be used for dwelling use. Subsection (b) would provide for the establishment by the Secretary of the "development cost" for different sized homes and multifamily dwelling units in each housing market area. The "development cost" would be determined by establishing for each housing market area the "total construction cost" of a standard-sized new single-family home (and a standard-sized dwelling unit in a new multifamily structure) based on plans and specifications drawn for modest dwellings suitable for occupancy by persons receiving homeownership or rental assistance under section 402 and 502 of the Act and of a quality consistent with property and design standards acceptable in the area. On the basis of these determinations of total construction cost for the standard-sized home (and standard-sized dwelling unit in a multifamily structure) the Secretary would establish the total construction cost of varying sized dwellings (ie., more or fewer bedrooms). The total construction cost of the various sized dwellings would then be increased by the same percentage which the average cost of land and site improvements in the area bears to the total construction cost for similar sized homes and multifamily units in the area. For example, if the estimated total construction cost of a prototype unit in housing area "X" is $14,000 and the average ratio of land cost to construction cost for a house of comparable size in the area is 25 percent, the development cost would equal: Development cost-construction cost x average land cost ratio =$14,000 x 1.25 The maximum insurable assisted (section 402) single-family home mortgage would be: Maximum insurable assisted mortgage=Development Cost x 1.10 =$17,500 x 1.10 The maximum insurable unassisted (section 401) single-family home mortgage would be: Maximum insurable unassisted mortgage=Development Cost x 2.00 =$17,500 x 2.00 Subsection (c) would define (1) "total construction cost” to mean those cost items which are includable in a home or multifamily mortgage insurable under the Act except the costs of land and site improvement, and (2) "housing market area" as a contiguous geographical area in which the Secretary determines that the cost of materials, labor and other construction cost expenses are generally similar. Subsection (d) would provide for periodic revisions by the Secretary of total construction or development cost estimates in any area on the basis of available data or for a redetermination of cost estimates for all areas where there has been a material change in property standards or for her regsons the development cost figures established for each e would become effective upon the date of their publice SECTION 4-INTEREST RATES This section would authorize the Secretary to establish interest rates con sistent with market conditions on all mortgages and loans insured under this Act. Authority would also be given to the Secretary to assure that discounts and settlement costs are equitable for all parties involved. Subsection (a) would give the Secretary permanent authority to presertbe maximum interest rates for insured mortgages and loans based on his de termination of the needs of the mortgage or loan market. These rates could differ for each of the different types of mortgages or loans which would be insured under the various sections of the Act and could further take into ne count differences in repayment requirements within each provision. The Horro tary presently has temporary authority to set maximum interest rates on PTTA insured mortgages and loans (this authority is to expire on October 1, 1970; section 3(a) of Public Law 90-301). Subsection (b) would permit the collection of a discount by the mortgagon from the mortgagor, builder, seller or any other person or entity connected with the transaction. The amount to be collected from each would be determined on the basis of negotiation between the parties. The mortgagee would be required to report to the secretary the amount collected from each party. Under the em rent interpretation of the National Housing Act, the mortgagor is generally not permitted to be charged discounts which serve the purpose of increasing the yield on a mortgage. Subsection (e) would require the Secretary to prescribe standarde, husd on a determination of reasonable charges, governing the amounts of dilemund costs payable by mortgagors in connection with housing financed with monipmara insured under the Act, with a view to accumulating experience leading day depicta tive recommendations to reduce settlement costs and standardize then noch da all areas. SECTION 5-WATER AND SEWER FACH 111FE This section which is similar to section 522 of the Mutional Home Vau would require that there be adequate public or community walce woul facilities serving newly constructed housing except where in schermo M the establishment of a public or adequate community system je donira z feasible and the Secretary determines that the when it makes not create a significant environmental hazard. For the purposes of this section. the determination of is to be made without regard to whether the origin) irhus in d type of system is authorized by law or im mjeri ky myungna local governments or public bodies. This section WİNGİ Housing Art His the Mortgage Crede General Instrus but este |