16 1 (4) A mortgage or loan secured by residential prop2 erty may be insured under this Act only where the Secre3 tary finds that the proposed sales price of or rent for such 4 property is reasonable and that the homeowner, cooperative 5 member, or tenant (after taking into account any assistance 6 to be paid on his behalf) will be able to afford such price or 7 rent. 8 (c) (1) The Secretary is authorized to refuse the bene9 fits of participation (either directly as an insured lender or 10 11 as a borrower, or indirectly as a builder, contractor, or dealer, or salesman or sales agent for a builder, contractor, or dealer) 12 under any of the provisions of this Act to any person or firm 13 (including but not limited to any individual, partnership, 14 association, trust, or corporation) if the Secretary has de15 termined that such person or firm (A) has knowingly or willfully violated any provision of, or regulation issued under, this Act, the National Housing Act, title III of the Servicemen's Readjustment Act of 1944, chapter 37 of title 38, United States Code, or title IX of the Housing and Urban Development Act of 1972; or (B) has, in connection with any construction, alteration, repair, or improvement work financed with assistance under this Act or the National Housing Act, or under such title III or chapter 37, or in connection 1 2 3 4 5 6 ས 7 8 17 with contracts or financing relating to such work, violated any Federal or State penal statute; or (C) has failed materially to properly carry out con tractual obligations with respect to the completion of construction, alteration, repair, or improvement work financed with assistance under this Act or the National Housing Act, or under such title III or chapter 37. (2) Before any determination prescribed in this subsec9 tion is made, any person or firm with respect to which such determination is proposed shall be notified in writing by the 11 Secretary and shall be entitled (upon making a written re 10 12 233 13 14 45 15 16 17 18 quest to the Secretary) to (A) a written notice specifying the charges in reasonable detail, and (B) an opportunity to be heard and to be represented by counsel. (3) Any person aggrieved by a determination of the Secretary pursuant to this section may, within sixty days 19 after notice of such determination, file a petition of review 20 in the United States Court of Appeals for the circuit in 21 which the property involved is located. Judicial review 22 shall be confined to the record made in the hearing before 23 the Secretary, and the Secretary's findings of fact shall be 24 conclusive if supported by substantial evidence. 18 1 (4) For purposes of compliance with this section, the 2 Secretary's notice of a determination or proposed deter3 mination under this section shall be considered to have been 4 received by the interested person or firm if the notice is 5 properly mailed to the last known address of such person or firm. 6 7 (d) The Secretary shall take such further actions and 8 impose such further requirements for the protection of home9 owners, cooperative members, and tenants in properties 10 covered by mortgages insured under this Act and under 11 the National Housing Act as he deems necessary and ap12 propriate. 13 14 INSURANCE CONTRACT INCONTESTABILITY SEC. 8. Any contract of insurance executed by the Sec15 retary under the provisions of titles IV and V shall be con16 clusive evidence of the eligibility of the loan or mortgage 17 for insurance. The validity of any contract of insurance so 18 executed shall be incontestable in the hands of an approved 19 financial institution or approved mortgagee from the date of 20 the execution of such contract, except for fraud or misrepre21 sentation on the part of such financial institution or 22 mortgagee. 23 24 ADMINISTRATION SEC. 9. In carrying out the provisions of this Act, the 25 Secretary is authorized (1) to make such expenditures as 19 1 may be necessary, (2) to sue and be sued, (3) to make such 2 rules and regulations as may be necessary, and (4) to pro3 vide or obtain technical assistance in the planning for and 4 construction of projects to be covered by mortgages insured 5 under this Act. 6 7 8 9 TITLE II-INSURANCE FUNDS, PREMIUMS AND CHARGES INSURANCE FUNDS SEC. 201. (a) The General Insurance Fund, created 10 pursuant to section 519 of the National Housing Act, shall 11 be used by the Secretary as a revolving fund for carrying 12 out both his obligations incurred pursuant to the National 13 Housing Act and, except as otherwise provided in this sec14 tion, his obligations with respect to 15 16 17 18 20 22 (1) property improvement, mobile home, and his- (2) home mortgages insured under section 401; (4) supplemental project loans insured under sec- (b) The Special Risk Insurance Fund, created pursuant 23 to section 238 (b) of the National Housing Act, shall be used 24 by the Secretary as a revolving fund for carrying out both 2 20 1 his obligations incurred pursuant to the National Housing 2 Act and his obligations with respect to 3 4 5 6 7 8 9 10 11 122 13 14 15 (1) home mortgages insured under section 402; (2) home mortgages insured under section 401 where the mortgage involves experimental property, property in an older and declining area, or housing for employees of research and development installations; (3) project mortgages insured under section 502; (4) project mortgages insured under sections 501 and 503 where the mortgage involves experimental property or property in an older and declining area; and (5) supplemental project loans insured under section 504, where the Special Risk Insurance Fund is ob ligated for the insurance of the original project mortgage. (c) The Cooperative Management Housing Insurance 16 Fund, created pursuant to section 213 (k) of the National 17 Housing Act, shall be used by the Secretary as a revolving 18 fund for carrying out both his obligations incurred pursuant 19 to the National Housing Act and his obligations with respect 20 to (1) project mortgages insured under section 501 where the mortgagor is a cooperative; and (2) supplemental project loans insured under sec tion 504, where the Cooperative Management Housing Insurance Fund is obligated for the insurance of the orig |