"(c) To be eligible for insurance under this section a mortgage on any property or project of a corporation of the character described in paragraph numbered (2) of subsection (a) of this section shall involve a principal obligation in an amount not to exceed $5,000,000 and not to exceed the greater of the following amounts:

"(1) A sum computed on the basis of a separate mortgage for each singlefamily dwelling (irrespective of whether such dwelling has a party wall or is otherwise physically connected with another dwelling or dwellings) comprising the property or project, equal to the total of each of the maximum principal obligations of such mortgages which would meet the requirements of paragraph (A), paragraph (C), or paragraph (D) of section 203 (b) (2) of this Act if the mortgagor were the owner and occupant who had made any required payment on account of the property prescribed in such paragraph. "(2) A sum equal to the maximum amount which does not exceed either of the mortgage limitations prescribed in paragraphs numbered (2) and (3) of subsection (b) of this section.

"(d) Any mortgage insured under this section shall provide for complete amortization by periodic payments within such terms as the Commissioner may prescribe but not to exceed forty years from the beginning of amortization of the mortgage, and shall bear interest (exclusive of premium charges for insurance) at not to exceed 4 per centum per annum on the amount of the principal obligation outstanding at any time. The Commissioner may consent to the release of a part or parts of the mortgaged property from the lien of the mortgage upon such terms and conditions as he may prescribe and the mortgage may provide for such release, and a mortgage on any project of a corporation of the character described in paragraph numbered (2) of subsection (a) of this section may provide that, at any time after the completion of the construction of the project, such mortgage may be replaced by individual mortgages covering each individual dwelling in the project. Each such individual mortgage may be insured under this section with the mortgagor being either the nonprofit corporation which constructed the dwelling or the owner and occupant of the dwelling at the time. Provided, That, for a period of two years immediately following the completion of the construction of the dwelling involved, the owner and occupant thereof shall not be the mortgagor with respect to an individual mortgage thereon insured under this section. Property covered by a mortgage insured under this section may include such commercial and community facilities as the Commissioner deems adequate to serve the occupants.

"(e) The provisions of subsections (d), (e), (g), (h), (i), (j), (k), (1), (m), (n), and (p) of section 207 of this title shall be applicable to mortgages insured under this section.

"(f) The Commissioner is authorized, with respect to mortgages insured or to be insured under this section, to furnish technical advice and assistance in the organization of corporations of the character described in subsection (a) of this section and in the planning, development, construction, and operation of their housing projects. In the performance of, and with respect to, the functions, powers, and duties vested in him by this section, the Commissioner, notwithstanding the provisions of any other law, shall appoint an Assistant Commissioner to administer the provisions of this section under the direction and supervision of the Commissioner and the basic rate of compensation of such position shall be $12,000 per annum.'

SEC. 112. Section 301 (a) of said Act, as amended, is hereby amended(1) by striking out of paragraph (1) the words "title VI of" and inserting in lieu thereof the words "title VI, or section 8 of title I of";

(2) by striking out of paragraph (1) the words "Provided, however," and inserting in lieu thereof the following "Provided, That no deposit or fee required or charged by the Association for the purchase of, or commitment to purchase, a mortgage hereunder shall exceed one-half of 1 per centum of the original principal obligation of such mortgage: And provided further,";

(3) by striking out the period and adding the following proviso at the end of paragraph (1) (E): ": Provided, That this clause (2) shall not apply to (nor shall any terms therein include) any mortgage which after July 1, 1949, is (i) guaranteed under section 501 or section 502 of the Servicemen's Readjustment Act of 1944, as amended, and made for the construction or purchase of a family dwelling or dwellings in an original principal amount or amounts which does not exceed $10,000 per dwelling unit, or (ii) insured under section 8, section 203 (b) (2) (D), section 207, section 213, section 608 (including section 608 pursuant to section 610), or section 611 of this Act; and";

(4) by amending paragraph (1) (F) to read: "(F) no loan guaranteed under section 501 or section 502 of the Servicemen's Readjustment Act of 1944, as

amended, which is made to finance all or part of the purchase price or construction cost of a dwelling, shall be purchased by the Association (except pursuant to a commitment made or issued prior to the effective date of this paragraph) unless the mortgagee certifies that such dwelling conforms with minimum construction standards prescribed by the Administrator of Veterans' Affairs.": Provided, That this clause (4) shall become effective 90 days after the date of the approval of the Housing Amendments of 1949; and

(5) by adding the following new paragraph between paragraph (1) and paragraph (2) and redesignating paragraph (2) as paragraph "(3)":

"(2) to make real estate loans which are accepted for insurance or insured under section 207, section 213, or section 608 (including section 608 pursuant to section 610) of this Act: Provided, That no such loan shall be made by the Association unless the financial assistance applied for is not otherwise available on reasonable terms."

SEC. 113. The first sentence of section 302 of said Act, as amended, is hereby amended to read as follows:

"The total amount of investments, loans, purchases, and commitments made by the Association shall not exceed $2,000,000,000 outstanding at any one time." SEC. 114. Section 305 of said Act, as amended, is hereby amended by adding the words "or credit, or otherwise dispose of" immediately after the word "cash". SEC. 115. Section 4 (c) of the Reconstruction Finance Corporation Act, as amended, is hereby amended by striking out "$2,500,000,000" and inserting in lieu thereof "$2,800,000,000".

SEC. 116. Section 603 (a) of the National Housing Act, as amended, is hereby amended by striking out of the first proviso "$5,750,000,000" and inserting in lieu thereof "$6,150,000,000" and by striking out "$6,150,000,000" and inserting in lieu thereof "$6,650,000,000", and by striking out of the second proviso "August 31, 1949" in each place where it appears therein and inserting in lieu thereof "March 31, 1950".

SEC. 117. Section 608 (g) of said Act, as amended, is hereby amended by striking out the words "title II" in each place they appear therein and inserting in lieu thereof "title I or title II".

SEC. 118. Section 610 of said Act, as amended, is hereby amended

(1) by inserting in paragraph (4) of the first sentence, immediately after the words "section 603 (b) (2)", the words "or section 603 (b) (5)"; and

(2) by striking out in the proviso the word "and" after the words "date of insurance" and by striking out the period at the end of the proviso and inserting a comma and the following: "and (4) bear interest (exclusive of premium charges) at not to exceed 5 per centum per annum on the amount of the principal obligation outstanding at any time if such mortgage covers property on which there is located a dwelling designed principally for residential use for not more than four families in the aggregate, irrespective of whether such dwelling or dwellings have a party wall or are otherwise physically connected with another dwelling or dwellings, or bear interest at not to exceed 41⁄2 per centum per annum on the amount of the principal obligation outstanding at any time if such mortgage covers property upon which there is located a dwelling or dwellings designed principally for residential use for more than four families."

SEC. 119. Section 611 of said Act, as amended, is hereby amended

(1) by striking out in clause (A) of subsection (b) (3) the figure "80" and inserting in lieu thereof the figure "85", and by amending clause (B) of said subsection to read as follows: "not to exceed a sum computed on the individual dwellings comprising the total project as follows: $5,950 or 85 per centum of the valuation, whichever is the lower amount, with respect to each single-family dwelling: Provided, That if the Commissioner finds that it is not feasible, within the dollar amount limitation in clause (B) on the principal obligation of the mortgage, to construct dwellings containing three or four bedrooms without sacrifice of sound standards of construction, design, and livability, he may increase such dollar amount limitation by not exceeding $850 for each additional bedroom (as defined by the Commissioner) in excess of two contained in each such dwelling if he finds that such dwelling meets sound standards of design and livability as a three-bedroom unit or a four-bedroom unit, as the case may be, but the amount computed under clause (B) for each such dwelling shall not exceed, in any event, $7,650."

(2) by striking the period at the end of subsection (b) (4) and inserting the following: ", and the mortgage may provide that, upon the completion of the construction of the project, such mortgage may be replaced by individual mortgages covering each individual dwelling in the project. Each such individual mortgage may be insured under this section with the mortgagor being either the

builder who constructed the dwellings or the owner and occupant of the dwelling at the time, and where the mortgagor is the owner and occupant, may involve a principal obligation in such amount and have such maturity and interest rate as a mortgage eligible for insurance under section 203 (b) (2) (D) of this Act."

SEC. 120. Section 1 of said Act, as amended, is hereby amended by striking the period at the end of the fourth sentence thereof and inserting a colon and the following: "Provided, That, notwithstanding any other provisions of law except provisions of law hereafter enacted expressly in limitation hereof, all expenses of the Federal Housing Administration in connection with the examination and insurance of loans or investments under any title of this Act, or in connection with the acquisition of protection, completion, operation, maintenance, improvement or disposition of any real or personal property of the Administration acquired under the authority of this Act, all properly capitalized expenditures, and other necessary expenses not attributable to general overhead in accordance with generally accepted accounting principles shall be considered nonadministrative and payable from funds made available by this Act."

SEC. 121. The National Housing Act, as amended, is hereby amended by inserting a period after the word "Senate" in the first sentence of section 1 and striking out the balance of said first sentence, and by striking out the word "Administrator" wherever it appears in said Act, as amended, and substituting in lieu thereof the word "Commissioner".

TITLE II-DISPOSAL OF WAR AND VETERANS' HOUSING

SEC. 201. The Act entitled "An Act to expedite the provision of housing in connection with national defense, and for other purposes", approved October 14, 1940, as amended, is hereby amended by adding at the end thereof the following new title:

"TITLE VI

"HOUSING DISPOSITION

"SEC. 601. (a) Upon the filing of a request therefor as herein prescribed, the Administrator shall (subject to the provisions of this section) relinquish and transfer, without monetary consideration, to any State or political subdivision thereof, local housing authority, local public agency, nonprofit organization, or educational institution, all contractual rights (including the right to revenues and other proceeds) and all property right, title, and interest of the United States in and with respect to (1) any temporary housing located on land owned or controlled by such transferee and in which the United States has no leasehold or other property interest, and (2) housing materials which have been made available to the transferee by the Administrator pursuant to section 502 of this Act.

"(b) Upon the filing of a request therefor as herein prescribed, the Administrator may (subject to the provisions of this section) relinquish and transfer, without monetary consideration other than that specifically required by this subsection, to any State, county, municipality, or local housing authority, or to any educational institution where the housing involved is being operated for its student veterans, or to any other local public agency or nonprofit organization where the housing involved has been made available by the United States to such agency or organization pursuant to section 502 of this Act, all right, title, and interest of the United States in and with respect to any temporary housing (excluding commercial facilities which the Administrator determines are suitable for separate disposal and community facilities which the Administrator determines should be disposed of separately) located on land in which the United States has a property interest through ownership, lease, or otherwise, under the following conditions:

"(1) If the land is owned by the United States and under the jurisdiction of the Administrator, the transferee shall have purchased such land from the Administrator at a price substantially equal to the cost to the United States of the land (including survey, title examination, and other similar expenses incident to acquisition but excluding the cost or value of all improvements thereto by the United States other than extraordinary fill), or, if the Administrator determines the amount of such cost to be nominal or not readily ascertainable, at a price which the Administrator determines to be fair and reasonable. Payment for such land shall be made in full at the time of sale or in not more than ten equal annual installments (the first of which shall be paid within one year from the date of conveyance) all of which shall be secured as determined by the Administrator with interest from the date of conveyance at the going Federal rate of interest at the time of conveyance.

"(2) If the land is owned by the United States and not under the jurisdiction of the Administrator, the transferee shall have purchased such land from the Federal agency having jurisdiction thereof. The Federal agency having jurisdiction of any such land is hereby authorized to sell and convey the same to any such transferee on the terms authorized herein except that the determinations required to be made by the Administrator shall be made by the agency having jurisdiction of such land.

"(3) If the United States does not own the land but has an interest therein through lease or otherwise, the transferee shall (i) where it is not the landowner, obtain the right to possession of such land for a term satisfactory to the Administrator, (ii) obtain from the landowner a release (or, if the transferee is the landowner, furnish a release) of the United States from all liability in connection therewith, including any liability for removal of structures or restoration of the land, except for any rental or use payment due at the time of transfer, and (iii) reimburse the United States for the proportionate amount of any payments made by the United States for the right to use the land and for taxes or payments in lieu of taxes for any period extending beyond the time of the transfer, and (iv) if the interest of the United States is not under the jurisdiction of the Administrator, the transferee shall obtain a transfer or release of the interest of the United States from the Federal agency having jurisdiction, which transfers and releases by such Federal agencies are hereby authorized on such terms as the head of the respective agency determines to be in the public interest.

"(c) The filing of a request under subsection (a) or (b) of this section must be made on or before December 31, 1949, unless the Administrator shall, in any specific case, authorize the filing of a request subsequent to such date but on or before June 30, 1950, and, in any such case, the Administrator may extend, for a specified period not beyond December 31, 1950, the time hereinafter prescribed for complying with all conditions to the relinquishment or transfer. Such request shall be in the form of a resolution adopted by the governing body of the applicant, except that, in the case of a State, such request may be in the form of a written request from the governor, and, in the case of a local housing authority (other than the Alaska Housing Authority) shall be accompanied by a resolution of the governing body of the municipality or county approving the request for transfer. Such request shall be accompanied by either (1) a final opinion of the chief law officer or legal counsel of the applicant to the effect that it has legal authority to make the request, to accept the transfer of and operate any property involved, and to perform its obligations under this title, or (2) a preliminary opinion of such officer or counsel concerning the legal authority of the applicant with respect to the proposed relinquishment or transfer including a statement of the reasons for not furnish the final opinion with the request and the time required to furnish such opinion. If a request has been submitted as herein provided, the applicant shall comply with all conditions to the relinquishment or transfer (including the furnishing of the final legal opinion) on or before June 30, 1950: Provided, That, in any case where the applicant is unable to comply with all conditions to the relinquishment or transfer because of the need for the enactment of state legislation or charter amendment, such date shall be June 30, 1951, and may be extended by the Administrator, upon request in a particular case, to December 31, 1951. The Administrator shall act as promptly as practicable on any request which complies with the provisions of this section and is supported as herein required, and shall as promptly as practicable arrange for the making of any survey or the performance of other work necessary to the transfer: Provided, That, notwithstanding the provisions of this section, the Administrator may at any time, except with respect to housing for which a request has been or may be submitted under subsection (a) of this section, remove, dispose of, or retain any temporary housing, or part thereof, in accordance with any provision of this Act. "(d) No relinquishment or transfer with respect to temporary housing shall be made under this section unless the transferee represents in its request therefor that it proposes, to the extent permitted by law:

(1) As among eligible applicants for occupancy in dwellings of given sizes and at specified rents, to extend the following preferences in the selection of tenants:

"First, to families which are to be displaced by any low-rent housing project or by any public slum-clearance or redevelopment project initiated after January 1, 1947, or which were so displaced within three years prior to making application for admission to such housing; and as among such families first preference shall be given to families of disabled veterans whose disability has been determined by the Veterans' Administration to be service

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connected, and second preference shall be given to families of deceased veterans and servicemen whose death has been determined by the Veterans' Administration to be service-connected, and third preference shall be given to families of other veterans and servicemen;

"Second, to families of other veterans and servicemen; and as among such families first preference shall be given to families of disabled veterans whose disability has been determined by the Veterans' Administration to be service-connected, and second preference shall be given to families of deceased veterans and servicemen whose death has been determined by the Veterans' Administration to be service-connected: Provided, That if the transferee is an educational institution it may limit such preferences to student veterans and servicemen, and their families and may, in lieu of such preferences, make available to veterans or servicemen and their families accommodations in any housing of the institution equal in number to the accommodations relinquished or transferred to it: And provided further, That, notwithstanding such preferences, if the transferee is a State, political subdivision, local housing authority, or local public agency, it will, in filling vacancies in housing transferred under subsection 601 (b) hereof, give such preferences to military personnel and persons engaged in national defense or mobilization activities as the Secretary of Defense or his designee prescribes to such transferee.

"(2) Not to dispose of any right, title, or interest in the property (by sale, transfer, grant, exchange, mortgage, lease, release, termination of the leasehold, or any other relinquishment of interest) either (i) for housing use on the present site or on any other site except to a State or political subdivision thereof, local housing authority, a local public agency, or an educational institution, or (ii) for any other use unless the governing body of the municipality or county shall have adopted a resolution determining that, on the basis of local need and acceptability, the structures involved are satisfactory for such use and need not be removed: Provided, That this representation will not apply to any disposal through demolition for salvage, lease to tenants for residential occupancy, or lease of nondwelling facilities for the continuance of a use existing on the date of transfer, or where such disposal is the result of a bona fide foreclosure or other proceeding to enforce rights given as security for a loan to pay for land under this section: And provided further, That nothing contained in this paragraph shall be construed as applicable to the disposition of any land or interest therein after the removal of the structures therefrom.

"(3) To manage and operate the property involved in accordance with sound business practices, including the establishment of adequate reserves. "(4) Whenever the structures involved, or a substantial portion thereof, are terminated for housing use and are not to be used for a specific nonhousing use, to promptly demolish suchstructures terminated for housing use and clear the site thereof.

"(e) Any relinquishment or transfer by the Administrator under this section shall constitute a waiver of the requirements of section 313 of this Act (and any contractual obligations pursuant thereto) for removing the housing involved if the request for such relinquishment or transfer was made, as authorized herein, by the governing body of the municipality or county, or by the local housing authority, or, in other cases, if, prior to or within six months after the date of the relinquishment or transfer, there is filed with the Administrator a resolution of such governing body specifically approving (1) the unconditional waiver of such requirements or (2) the waiver of such requirements subject to conditions specified in the resolution. Any such conditions shall not affect the waiver of removal requirements hereunder, and the United States shall assume no responsibility for compliance therewith.

"(f) In any relinquishment or transfer under this section, the net revenues and other proceeds from such housing to which the United States is entitled on the basis of periodic settlements shall continue to accrue to the United States until the end of the month in which the relinquishment or transfer is made, and the obligation of the transferee to pay such accrued amounts shall not be affected by this section. The Administrator may charge to the transferee the cost to the United States of any survey, title information, or other item incidental to the transfer.

"SEC. 602. The requirements of section 313 of this Act shall not apply to any temporary housing

"(a) for which such requirements have been waived pursuant to section 505 or section 601 of this Act;