ARMED SERVICES HOUSING CIVILIAN EMPLOYEES SUBCHAPTER T-MILITARY AND ARMED SERVICES HOUSING MORTGAGE INSURANCE PART 809-ARMED SERVICES HOUSING CIVILIAN EMPLOYEES Subpart A-Eligibility Requirements Sec. 809.1 809.2 809.3 809.4 809.5 809.6 809.7 809.8 809.9 Incorporation by reference. Employment status certificate. Maximum mortgage amount; loan- Mortgage obligation in multiples. Requirements as to risk and eco- 809.10 Guarantee of fund from loss. AUTHORITY: The provisions of this Part 809 issued under sec. 807, 69 Stat. 651, sec. 809, 70 Stat. 273, as amended; 12 U.S.C. 1748f, 1748h-1. § 809.1 Incorporation by reference. (a) All of the provisions of Subpart A, Part 203 of this chapter concerning eligibility requirements of mortgages under section 203 of the National Housing Act apply with equal force and effect to mortgages insured pursuant to section 809, except the following provisions: insured unless the Secretary of Defense, or his designee, shall have certified to the Commissioner that the housing is necessary to provide adequate housing for civilians employed in connection with a research or development installation of one of the military departments of the United States or a contractor thereof, and that there is no present intention to substantially curtail the number of the civilian personnel assigned or to be assigned to such installation. The certification shall be conclusive evidence to the Commissioner of the need for such housing. Amended: September 25, 1963 (b) Issuance by Administrator of the National Aeronautics and Space Administration. A mortgage may be insured under this subpart secured by property which is intended to provide housing for a person employed or assigned to duty at or in connection with a research or development installation of the National Aeronautics and Space Administration and which is located at or near such installation. The mortgage shall not be insured, however, unless the Administrator of the National Aeronautics and Space Administration or his designee shall have certified to the Commissioner that the housing is necessary to provide adequate housing for civilian or military personnel employed or assigned to duty at or in connection with a research or development installation of the National Aeronautics and Space Administration and that there is no present intention to substantially curtail the number of the personnel assigned or to be assigned to such installation. certification shall be conclusive evidence to the Commissioner of the need for such housing. Amended: September 25, 1963 This (c) Issuance by Atomic Energy Commission. A mortgage may be insured under this subpart secured by property which is intended to provide housing for a person employed at a research or development installation of, the Atomic Energy Commission and which is located at or near such installation. The mortgage shall not be insured, however, un less the Atomic Energy Commission shall have certified to the Commissioner that the housing is necessary to provide adequate housing for persons employed at or in connection with a research or development installation of the Atomic Energy Commission and that there is no present intention to substantially curtail the number of the personnel assigned or to be assigned to such installation. This certification shall be conclusive evidence to the Commissioner of the need for such housing. Added: September 25, 1963 § 809.3 Employment status certificate. (a) Certificate by Secretary of Defense. No mortgage covering property at a military installation shall be insured unless the Secretary of Defense, or his designee, has issued a certificate indicating that the mortgagor: (1) Requires housing; (2) is, on the date of the certificate, a civilian employee at a research or development installation of one of the military departments of the United States, or contractor thereof, at a research or development installation; and (3) is considered by the military department to be an essential, nontemporary employee at such date. certificate shall be conclusive evidence to the Commissioner of the employment status of the mortgagor and of the mortgagor's need for housing. Such (b) Certificate by Administrator of National Aeronautics and Space Administration. (1) An employment status certificate shall be required in connection with a mortgage secured by property which is intended to provide housing for a person employed or assigned to duty at a research or development installation of the National Aeronautics and Space Administration and which is located at or near such installation. No mortgage shall be insured unless the Administrator of the National Aeronautics and Space Administration, or his designee, has issued a certificate indicating that the mortgagor on the date of the certificate: (i) Requires housing; (ii) Is a civilian employee or one of the military personnel employed or as signed to duty at a research or development installation of the National Aeronautics and Space Administration, or is an employee of a contractor of such Administration who is employed at a research or development installation; and (iii) Is considered by the National Aeronautics and Space Administration to be an essential, nontemporary employee of such Administration or of a contractor thereof. (2) The certificate shall be conclusive evidence to the Commissioner of the employment status of the mortgagor and the mortgagor's need for housing. Amended: September 25, 1963 (c) Certificate by Atomic Energy Commission. (1) An employment status certificate shall be required in connection with a mortgage secured by property which is intended to provide housing for a person employed or assigned to duty at a research or development installation of the Atomic Energy Commission and which is located at or near such installation. No mortgage shall be insured unless the Atomic Energy Commission has issued a certificate indicating that the mortgagor on the date of the certificate: (i) Requires housing; (ii) Is a civilian employee or one of the military personnel employed or assigned to duty at a research or development installation of the Atomic Energy Commission, or is an employee of a contractor of such Commission who is employed at a research or development installation; and (iii) Is considered by the Atomic Energy Commission to be an essential, nontemporary employee of such Commission or of a contractor thereof. (2) The certificate shall be conclusive evidence to the Commissioner of the employment status of the mortgagor and the mortgagor's need for housing. Added: September 25, 1963 (b) $32,500 in the case of a two-family residence; or (c) $32,500 in the case of a threefamily residence; or (d) $37,500 in the case of a fourfamily residence. Amended: December 11, 1964 In addition to the dollar limitation prescribed in this section the mortgage amount is subject to a loan-to-value limitation as provided in § 809.5. § 809.5 Maximum mortgage amount; loan-to-value limitation. (a) In addition to meeting the dollar limitation set forth in § 809.4, the mortgage shall be in an amount not exceeding the following: (1) Approval prior to construction. If the mortgage covers a dwelling approved for mortgage insurance (or for guaranty, insurance, or a direct loan by the Administrator of Veterans Affairs) prior to the beginning of construction or a dwelling which was completed more than 1 year preceding the date of the application for mortgage insurance, the sum of the following percentages of the Commissioner's appraised value of the property, as of the date the mortgage is accepted for insurance: (i) 97 percent of the first $15,000 of such value (100 percent of $15,000 of such value or the sum of such value not in excess of $15,000 and the items of prepaid expense approved by the Commissioner minus $200, whichever appraisal amount or sum is the lesser, in the case of a mortgagor qualifying as a veteran). (ii) 90 percent of such value in excess of $15,000, but not in excess of $20,000. (iii) 80 percent (85 percent in the case of a mortgagor qualifying as a veteran) of such value in excess of $20,000. (2) No prior approval. A loan-to-value limitation of 90 percent of $20,000 of the appraised value of the property, as of the date the mortgage is accepted for insurance, and 80 percent (85 percent in the case of a mortgagor qualifying as a veteran) of such value in excess of $20,000, if the dwelling does not meet the requirements in the introductory text of subparagraph (1) of this paragraph. (b) Veteran qualifications: The special veteran terms provided in paragraph (a) shall only be applicable to a mortgage covering a single family dwelling executed by a mortgagor who submits to the Commissioner one of the following certifications: (1) A Certificate of Veteran Status from the Veterans Administration establishing that he has served 90 days or more on active duty in the armed forces (U.S. Army, Navy, Marine Corps, Air Force, Coast Guard, the Army Reserve, the Naval Reserve, the Marine Corps Reserve, the Air Force Reserve, the Coast Guard Reserve, the National Guard of the United States, and the Air National Guard of the United States) of the United States and was discharged or released therefrom under conditions other than dishonorable. (2) A certificate issued by the Secretary of Defense establishing that the mortgagor performed extra hazardous service while serving in the armed forces for a period of less than 90 days. Amended: August 10, 1965; September 1, 1965; November 6, 1967 At the time the mortgage is insured, the mortgagor shall have paid in cash or its equivalent the following minimum amount: (a) In all cases (except those involving a veteran meeting the requirements of 809.5(b)), the minimum investment shall be at least 3 percent of the Commissioner's estimate of the cost of acquisition or such larger amount, as the Commissioner may determine. (b) In a case involving a veteran meeting the requirements of § 809.5 (b), the minimum investment shall be $200 which may include settlement costs, initial payments for taxes, hazard insurance premiums, mortgage insurance premiums, and other prepaid expenses as approved by the Commissioner. Amended: September 1, 1965 § 809.8 Eligible mortgagors. No mortgage shall be insured unless executed by a mortgagor who meets the employment status requirements as set forth in § 809.3 and who at the time of insurance is the owner of the property and either occupies the property or certifies that his failure to do so is the result of a change of his employment. § 809.9 Requirements as economic soundness. regard to any requirement that the property or project be economically sound or an acceptable risk. § 809.10 Guarantee of Fund from loss. If the Commissioner determines that the insurance of mortgages on housing as certified by the Secretary of Defense, the Administrator of the National Aeronautics and Space Administration, or the Chairman of the Atomic Energy Commission is not an acceptable risk, he may require the Secretary, the Administrator, or the Chairman, as the case may be, to to risk and guarantee the General Insurance Fund against loss with respect to mortgages insured under this subpart. A mortgage may be accepted for insurance by the Commissioner without Amended: September 25, 1963; August 10, 1965 |