117 1 2 3 4 5 6 7 8 9 10 11 221 13 14 15 16 17 18 (c) A loan financing repairs, improvements, additions, or equipment shall— (1) be limited to 90 per centum (100 per centum in the case of a cooperative or nonprofit mortgagor) of the Secretary's estimate of the cost of such repairs, improvements, additions, and equipment; except that where the project is covered by an insured mortgage, such amount when added to the outstanding balance of the mortgage covering the project, shall not exceed the maximum mortgage amount prescribed under the section of this title providing mortgage insurance for the type of project involved; and (2) have a maturity satisfactory to the Secretary but not to exceed (in the case of a project or facility covered by a mortgage) the remaining term of the mortgage, except that in the case of a cooperative housing project covered by an uninsured mortgage the loan may, in the discretion of the Secretary, have a maturity date up to ten years in excess of the remaining term of the uninsured mortgage. (d) A loan to a cooperative to finance the purchase and 22 resale of memberships shall— (1) be limited to an amount which when added to the outstanding balance of the mortgage covering 25 the project does not exceed the maximum mortgage 118 1 amount prescribed under the section of this title pro 2 3 4 5 6 7 viding mortgage insurance for the type of project involved; and (2) have a maturity satisfactory to the Secretary, but not to exceed the remaining term of the mortgage covering the project. (e) The Secretary is further authorized to insure under 8 this section a loan made with respect to a health facility, 9 without regard to whether such facility is covered by a mort10 gage (insured or uninsured), in order to finance such 11 repairs, improvements, or additions, and the purchase, instal12 lation, or repair of such equipment to be used in its opera13 tion, as may be necessary for the facility to meet the appli14 cable requirements imposed by title XVIII of the Social 15 Security Act and thereby qualify for participation in, or 16 maintain certification under, the hospital insurance program 17 under such title. 24 25 (f) A loan insured under this section shall (1) be secured in such manner as the Secretary may require; and (2) contain such other terms, conditions, and re strictions as the Secretary may prescribe. MORTGAGE INSURANCE FOR LAND DEVELOPMENT SEC. 505. (a) For the purposes of this section (1) The term "land development" means the process 26 of making, installing, or constructing improvements. 119 (2) The term "improvements" means waterlines and water supply installations, sewerlines and sewage or waste 3 disposal installations, steam, gas, and electric lines and in4 stallations, roads, streets, curbs, gutters, sidewalks, storm 5 drainage facilities, neighborhood central heating or air6 conditioning systems, and other installations or work, 7 whether on or off the site, which the Secretary deems neces8 sary or desirable to prepare land primarily for residential 9 and related uses or to provide facilities for public or common 10 use. Related uses may include industrial and commercial 11 uses, with sites for such uses to be in proper proportion to 12 the size and scope of the development. The term "improve13 ments" includes the construction of public facilities, but does 14 not include the construction of any building unless it is (i) needed in connection with a water supply or sewage dis16 posal installation or a steam, gas, or electric line or installa17 tion, or (ii) is to be owned and maintained jointly by the 18 property owners. 15 19 (b) The Secretary is authorized to insure a mortgage 20 (including advances) which shall— (1) cover the land to be developed and the improvements to be made; (2) be executed by a mortgagor, other than a pub lic body, approved by the Secretary; (3) contain repayment provisions satisfactory to 120 1 2 3 4 5 6 7 the Secretary within such term as the Secretary shall prescribe; and (4) contain such terms and provisions with respect to the security, payment of taxes, delinquency charges, prepayment, additional and secondary liens, and other matters as the Secretary may in his discretion prescribe. (c) The principal obligation of the mortgage shall not 8 exceed the sum of 80 per centum of the Secretary's estimate 9 of the value of the land before development and 90 per 10 centum of his estimate of the cost of such development. (d) The land development shall involve improvements 11 12 that comply with all applicable State and local governmental 13 requirements and with minimum standards approved by the 14 Secretary and shall be undertaken 17 18 19 20 22 23 2 2 2 (1) pursuant to a schedule, conforming to such requirements and procedures as the Secretary may prescribe, that will assure the use of the land for the purposes for which it is to be developed within the shortest reasonable period consistent with the objectives of sound and economic community growth or urban development; and (2) in accordance with an overall development plan which (i) has received all governmental approvals 24 required by State or local law or by the Secretary, (ii) is 25 acceptable to the Secretary as providing reasonable as 1 2 3 4 5 6 7 121 surance that the land development will contribute to good living conditions in the area being developed, and (iii) is consistent with a comprehensive plan which cov ers, or with comprehensive planning being carried on for, the area in which the land is situated, and which meets criteria established by the Secretary for such plans or planning. 8 (e) The Secretary shall adopt such requirements as he 9 deems necessary in connection with the land development 10 to encourage the maintenance of a diversified local homebuild11 ing industry, broad participation by builders, including small 12 builders, and the inclusion of a proper balance of housing for 13 families of moderate or low income. 14 (f) After development of the land, it shall be served 15 by public or private systems for water and sewerage which 16 are consistent with other existing or prospective systems 17 within the area and which are approved by the Secretary. 18 (g) The Secretary may consent to the release or sub19 ordination of a part or parts of the mortgaged property 20 from the lien of the mortgage. 21 (h) The Secretary shall adopt such requirements as he 22 determines necessary to assure, at reasonable intervals of 23 time during land development, that the amount of the mort24 gage loan outstanding at each such interval does not exceed 25 with respect to that portion of the land remaining under the |