11

1 erty separately from the losses sustained or business, com

2 mercial, and other nonhabitational property."

3

(b) Section 1284 of such Act is amended by adding st

4 the end thereof the following new subsection:

5

(e) Each report and other document submitted to the 6 Secretary by an insurer or other person under this section 7 with respect to reinsurance under this title shall set forth and 8 describe any losses sustained on habitational property sepa

9

rately from the losses sustained on business, commercial, and 10 other nonhabitational property."

11

SEC. 7. Section 1214 of the National Housing Act is 12 amended by adding at the end thereof (after the new sub13 section added by section 6(a) of this Act) the following

14

15

16

new subsection:

"(d) The Secretary, through an Office of Review and Compliance under the Federal Insurance Administrator, shall 17 periodically review each plan under this part and the methods

and practices by which such plan is being actually carried

out in the areas and communities where it is intended to

operate, in order to assure that such plan is effectively mak

ing essential property insurance readily available in such

areas and communities and is otherwise carrying out the

purposes of this title, and in order to identify any aspects

of the operation or administration of such plan which may

12

1 require revision, modification, or other action to carry out 2 such purposes."

3 SEC. 8. (a) Section 1223 (a) of the National Housing 4 Act is amended by striking out paragraph (1), and by re5 designating paragraphs (2) through (5) as paragraphs (1) 6 through (4), respectively.

7 (b) Section 1240 of such Act is amended by striking 8 out "(a)", and by striking out subsection (b).

9

(c) Section 1211 of the District of Columbia Insurance

10 Placement Act is repealed.

11

SEC. 9. (a) Section 115 (b) of the Housing Act of 12 1949 is amended

(1) by striking out "(payable from any grant funds provided under section 103 (b))";

(2) by inserting after "real property which has been determined to be uninsurable" the following: ", or

which has been determined to be insurable only at an unreasonable rate,";

(3) by inserting before the period at the end of the second sentence the following: "or to eliminate the

conditions necessitating the unreasonable rate"; and

(4) by adding at the end thereof the following new

sentences: "For purposes of this subsection a rate is unreasonable if it is sufficiently high to justify direct

Federal insurance of the property involved under part C

13

1 of title XII of the National Housing Act. Grants under

2

this subsection shall be payable from grant funds pro

3 vided under section 103 (b) of this Act; except that to

4

5

6

7

8

9

10

11

12

1

the extent it is determined by the Secretary that funds

made available for payments of directly insured losses under such title XII pursuant to section 520 (b) of such Act are not needed for payments of such losses, such funds shall be used (before any funds provided under section 103 (b) of this Act) for grants under this subsection with respect to property determined to be insurable only upon payment of an unreasonable rate.”

(b) (1) Section 312 (a) (1) (C) of the Housing Act of 13 1964 is amended

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15

16

17

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20

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22

(A) by inserting after "the property has been determined to be uninsurable" the following: ", or has been determined to be insurable only upon payment of an unreasonable rate,"; and

(B) by inserting before the semicolon at the end thereof the following: "or to eliminate the conditions necessitating the unreasonable rate".

(2) Section 312 (a) of such Act is further amended

by adding at the end thereof the following new sentence:

23 "For purposes of paragraph (1) (C), a rate is unreasonable

24

if it is sufficiently high to justify direct Federal insurance of

14

1 the property involved under part C of title XII of the 2 National Housing Act."

3 (3) Section 312 (d) of such Act is amended by insert4 ing "(1)" after “(d)", and by adding at the end thereof 5 the following new paragraph:

6

"(2) To the extent it is determined by the Secretary 7 that funds made available for payments of directly insured 8 losses under title XII of the National Housing Act pursuant 9 to section 520 (b) of such Act are not needed for payments 10 of such losses, such funds shall be placed in the revolving 11 fund and used by the Secretary (before any funds appropri12 ated pursuant to paragraph (1) of this subsection) for loans 13 described in subsection (a) (1) (C) with respect to property 14 determined to be insurable only upon payment of an un15 reasonable rate."

91ST CONGRESS 2D SESSION

S. 3330

IN THE SENATE OF THE UNITED STATES

JANUARY 23, 1970

Mr. METCALF introduced the following bill; which was read twice and referred to the Committee on Banking and Currency

A BILL

To authorize rural housing loans to lessees of nonfarm rural land, and for other purposes.

Be it enacted by the Senate and House of Representa

2 tives of the United States of America in Congress assembled, 3 That pragraph (2) of subsection (b) of section 501 of the 4 Housing Act of 1949 is amended by striking "the terms 5 'owner', 'farm', and 'mortgage' shall be deemed to include, 6 respectively, the lessee of, the land included in" and inserting 7 in lieu thereof the following: "the terms 'owner' and 'mortgage' shall be deemed to include, respectively, the lessee of".