144 1 gagee or lender under such mortgage or security, including 2 the right to sell such mortgage or security, and to take such 3 action and advance such sums as may be necessary to pre4 serve or protect the lien of such mortgage or security. 5 INSURANCE FOR 6 7 8 CONNECTION THE SECRETARY SEC. 703. The Secretary is authorized to insure under 9 any section of this Act any mortgage assigned to him in 10 connection with payment under a contract of insurance 11 which he subsequently sells or any mortgage executed in 12 connection with the sale by him of any property acquired 13 under any section of this Act or under any section or title 14 of the National Housing Act. This authority may be exer15 cised without regard to any limitations or requirements con16 tained in this Act upon the eligibility of the mortgage for in17 surance, upon the payment of insurance premiums, or upon 18 the terms and conditions of insurance settlement and the 19 benefits of the insurance to be included in such settlement. 20 EXPENDITURES TO CORRECT OR COMPENSATE FOR STRUC 220 21 22 23 TURAL DEFECTS IN MORTGAGED HOMES AND EX PERIMENTAL PROPERTY SEC. 704. (a) The Secretary is authorized, with respect 24 to any property improved by a one- to four-family dwelling 25 approved for mortgage insurance under title IV prior to the 145 1 beginning of construction which he finds to have structural 2 defects, to make expenditures for (1) correcting such de3 fects, (2) paying the claims of the owner of the property 4 arising from such defects, or (3) acquiring title to the 5 property; but such authority of the Secretary shall exist 6 only if the owner has requested assistance from the Sec7 retary not later than four years (or such shorter time as 8 the Secretary may prescribe) after insurance of the 9 mortgage. 10 (b) If the owner of any one- to four-family dwelling 11 which— 12 13 14 15 16 (1) is covered by a mortgage insured under section 402 or is located in an older and declining area, and (2) is more than one year old on the date of the issuance of the insurance commitment, 17 makes application to the Secretary not more than one year 18 after the insurance of the mortgage to correct any structural 19 or other serious defect of the dwelling attributable to a failure 20 of the dwelling to meet applicable State laws, or local ordi21 nances or regulations, relating to the public health or safety, 22 the Secretary shall, with all reasonable promptness, make ex23 penditures for any of the purposes specified in subsection (a), unless the defect is one that did not exist on the date. 24 146 1 of the issuance of the insurance commitment. The Secretary 2 may require from the seller of any such dwelling an agree3 ment to reimburse him for any payments made pursuant to 4 this subsection with respect to such dwelling. 5 (c) The Secretary is also authorized to expend available 6 funds to correct defects or failures (when he determines it 7 necessary to protect the occupants) with respect to experi8 mental property covered by a mortgage insured under this 9 Act, at any time subsequent to insurance of the mortgage, 10 where he finds that the defects are caused by or related to 11 the advanced technology utilized. 12 (d) The Secretary shall by regulations prescribe the 13 terms and conditions upon which expenditures and payments may be made under the provisions of this section. 14 15 16 TRANSITION BETWEEN THE NATIONAL HOUSING ACT AND THE REVISED NATIONAL HOUSING ACT 17 SEC. 302. The provisions of section 101 of this Act shall 18 be effective in whole or in part (and the regulations and 19 guidelines necessary to administer and carry out such pro20 visions shall be issued) at such date or dates as the Secretary 21 of Housing and Urban Development shall prescribe, but in 22 225 no event later than 120 days after the date of the enact 23 ment of this Act; and the Secretary shall establish procedures 24 for the orderly transfer of mortgage insurance operations from 24-038 74 - pt. 1 11 147 1 the authority of the National Housing Act to the authority of 2 the Revised National Housing Act in order to assure con3 tinuity of efficient program activity and to provide adequate 4 opportunity for necessary administrative and legislative 5 revisions. 6 7 CONFORMING AND TECHNICAL AMENDMENTS SEC. 303. (a) Any reference in any Federal, State, or 8 local law to the National Housing Act shall be construed to 9 10 refer also to the Revised National Housing Act and any ref erence in such Federal, State, or local law to a particular 11 provision of the National Housing Act shall be construed to 12 refer also to the provision of the Revised National Housing 13 Act which corresponds in purpose and function to such pro14 vision of the National Housing Act. 15 (b) Section 2 (a) of the National Housing Act is 16 amended by inserting "or under title III of the Revised 17 National Housing Act" immediately after "under this sec18 tion" in the second sentence of the first paragraph. 19 (c) After the effective date of section 301 of this Act 20 all references in the National Housing Act to the "Mutual 21 Mortgage Insurance Fund", the "Special Risk Insurance 22 Fund" and the "Cooperative Management Housing Insur23 ance Funds" shall be construed to refer to the "General 24 Insurance Fund". 148 1 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 2 SEC. 304. (a) Section 302 (b) (1) of the National 3 Housing Act is amended by striking out the proviso in the 4 first sentence, and by striking out the second sentence thereof 5 and inserting in lieu thereof the following new sentence: 6 "The Association may not purchase any mortgage under 7 section 305 if the original principal obligation thereof ex8 ceeds 130 per centum of the appropriate prototype cost deter9 mined by the Secretary pursuant to section 3 of the Revised 10 National Housing Act." 11 (b) (1) Section 301 (b) of such Act is amended by 12 striking out "President" and inserting in lieu thereof 13 "Secretary". 14 (2) Section 305 (a) of such Act is amended by strik15 ing out "President" and inserting in lieu thereof "Secretary". (3) Section 305 (e) of such Act is amended by strik17 ing out "President" and inserting in lieu thereof "Secretary”. 16 (5) Section 305 (j) of such Act is amended (A) by striking out "equal to" and inserting in lieu 18 (4) Section 305 (h) of such Act is repealed. thereof "not exceeding"; and (B) by adding at the end thereof the following new sentence: "There are authorized to be appropriated such. sums as may be necessary to cover losses to the Associa tion from the operation of this subsection." |