"Whoever uses as a firm or business name the words "Department of Housing and Urban Development", "Housing and Home Finance Agency", "Federal Housing Administration", "Federal National Mortgage Association", "United States Housing Authority" or "Public Housing Administration” or the letters “HUD", "FHA". "PHA”, “USHA", or any combination or variation of those words or the letters "HUD", "FHA", "PHA", or "USHA" alone or with other words or letters reasonably calculated to convey the false impression that such name or business has some connection with, or authorization from, the Department of Housing and Urban Development, the Housing and Home Finance Agency, the Federal Housing Administration, the Federal National Mortgage Association, the United States Housing Authority, the Public Housing Administration, the Government of the United States or any agency thereof, which does not in fact exist, or falsely claims that any repair, improvement, or alteration of any existing structure is required or recommended by the Department of Housing and Urban Development, the Housing and Home Finance Agency, the Federal Housing Administration, the Federal National Mortgage Association, the United States Housing Authority, the Public Housing Administration, the Government of the United States or any agency thereof, for the purpose of inducing any person to enter into a contract for the making of such repairs, alterations, or improvements, or falsely advertises or falsely represents by any device whatsoever that any housing unit, project, business, or product has been in any way endorsed, authorized, inspected, appraised, or approved by the Department of Housing and Urban Development, the Housing and Home Finance Agency, the Federal Housing Administration, the Federal National Mortgage Association, the United States Housing Authority, the Public Housing Administration, the Government of the United States or any Agency thereof; or".

(c) Section 1010 of such title is amended

(1) by striking out the caption and inserting in lieu thereof "Department of Housing and Urban Development and Federal Housing Administration transactions";

(2) by striking out "Federal Housing Administration" and inserting in lieu thereof "Department of Housing and Urban Development"; and

(3) by striking out "Administration" both places it appears and inserting in lieu thereof "Department".

(d) Section 1012 of such title is amended

(1) by striking out the caption and inserting in lieu thereof "Department of Housing and Urban Development transactions";

(2) by striking out "Public Housing Administration" and inserting in lieu thereof "Department of Housing and Urban Development"; and

(3) by striking out "Administration" each place it appears and inserting in lieu thereof “Department”.

(e) The analysis of chapter 47, title 18, United States Code, immediately preceding section 1001, is amended

(1) by striking out item 1010 and inserting in lieu thereof

"1010. Department of Housing and Urban Development and Federal Housing Administration transactions";

and

(2) by striking out item 1012 and inserting in lieu thereof "1012. Department of Housing and Urban Development transactions". SEC. 226. Title 38, United States Code, is amended

(a) by striking out "Federal Housing Commissioner" in section 1804 (b), (d), and (e) and inserting in lieu thereof "Secretary of Housing and Urban Development"; and

(b) by striking out "Federal Housing Administration approved mortgagee designated by the Federal Housing Commissioner" in section 1802(d) and inserting in lieu thereof "mortgagee approved by the Secretary of Housing and Urban Development and designated by him".

SEC. 227. Section 24 of the Federal Reserve Act is amended by striking out "Housing and Home Finance Administrator" in the first sentence of the fourth paragraph and inserting in lieu thereof "Secretary of Housing and Urban Development”.

SEC. 228. (a) The penultimate sentence of paragraph Seventh of section 5136 of the Revised Statutes is amended

(1) by striking out "Housing and Home Finance Administrator" and inserting in lieu thereof "Secretary of Housing and Urban Development";

(2) by striking out "Administrator" each place it appears and inserting in lieu thereof "Secretary";

(3) by striking out "Federal Housing Administrator" and inserting in lieu thereof "Secretary of Housing and Urban Development"; and

(4) by striking out "Public Housing Administration" each place it appears and inserting in lieu thereof "Secretary of Housing and Urban Development". (b) Paragraph (11) of section 5200 of the Revised Statutes is amended(1) by striking out "or the Public Housing Administration"; (2) by striking out "or Administration" in both places it appears; (3) by striking out "Housing and Home Finance Administrator" and inserting in lieu thereof "Secretary of Housing and Urban Development"; and

(4) by striking out "Administrator" each place it appears and inserting in lieu thereof "Secretary".

SEC. 229. Any function or authority vested in or exercisable by the Federal Home Loan Bank Board, the Chairman thereof, or the Federal Savings and Loan Insurance Corporation immediately before the enactment of this title shall not by this title or anything therein be affected or impaired, or subjected to any restriction or limitation to which it was not then subject.

[H.R. 9256, 89th Cong., 1st sess.]

A BILL To amend the National Housing Act to provide mortgage insurance, and authorize direct loans by the Housing and Home Finance Administrator, to help finance the cost of constructing and equipping facilities for the group practice of medicine or dentistry Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That it is the purpose of this Act to assure the availability of credit on reasonable terms to units or organizations engaged in the group practice of medicine or dentistry, particularly those in smaller communities and those sponsored by cooperative or other nonprofit organizations, to assist in financing the construction and equipment of group practice facilities.

TITLE I-MORTGAGE INSURANCE PROGRAM

ESTABLISHMENT OF PROGRAM

SEC. 101. The National Housing Act is amended by adding at the end thereof the following new title:

"TITLE X-MORTGAGE INSURANCE FOR GROUP PRACTICE

FACILITIES

"INSURANCE OF MORTGAGES

"SEC. 1001. (a) The Commissioner is authorized (1) to insure mortgages (including advances on such mortgages during construction), upon such terms and conditions as he may prescribe, in accordance with the provisions of this title, and (2) to make commitments for the insurance of such mortgages prior to the date of their execution or disbursement thereon. No mortgage shall be insured under this title after June 30, 1970, except pursuant to a commitment to insure issued before that date.

"(b) To be eligible for insurance under this title, the mortgage shall (1) be executed by a mortgagor that is a group practice unit or organization, approved by the Commissioner, (2) be made to and held by a mortgagee approved by the Commissioner as responsible and able to service the mortgage properly, and (3) cover a property or project which is approved for mortgage insurance prior to the beginning of construction or rehabilitation and is designed for use as a group practice facility which the Commissioner finds will be constructed in an economical manner, will not be of elaborate or extravagant design or materials, and will be adequate and suitable for carrying out the purposes of this title. "(c) The mortgage shall

"(1) not exceed 90 per centum of the amount which the Commissioner estimates will be the value of the property or project when construction is completed, and the value of the property may, in the Commissioner's discretion, include the land and the proposed physical improvements (or, in

the case of expansion, remodeling, or alteration of existing buildings, the land and all improvements as so expanded, remodeled, or altered), utilities within the boundaries of the property, architects' fees, taxes, and interest accruing during construction, and other miscellaneous charges incident to construction and approved by the Commissioner;

"(2) have a maturity satisfactory to the Commissioner but not to exceed twenty-five years, and provide for complete amortization of the principal obligation by periodic payments within such term as the Commissioner shall prescribe; and

"(3) bear interest (exclusive of premium charges for insurance, and service charges if any) at a rate of not to exceed 5 per centum per annum of the amount of the principal obligation outstanding at any time, or not to exceed such rate (not in excess of 6 per centum per annum) as the Commissioner finds necessary to meet the mortgage market.

"(d) Any contract of insurance executed by the Commissioner under this title shall be conclusive evidence of the eligibility of the mortgage for insurance, and the validity of any contract for insurance so executed shall be incontestable in the hands of an approved mortgagee from the date of the execution of such contract, except for fraud or misrepresentation on the part of such approved mortgagee.

"(e) The maximum aggregate amount of insurance liability (contingent or actual) with respect to mortgages insured under this title outstanding at any one time shall not exceed whichever is the lesser of (1) $200,000,000 less the aggregate principal amount of loans outstanding at such time from the Group Practice Facilities Loan Fund established by section 202 of the Act which enacted this title, and (2) twenty times the sum transferred to the Group Practice Facilities Insurance Fund from appropriations under section 301 of such Act to provide capital for the Fund. For the purposes of this subsection, the insurance liability (contingent or actual) with respect to any mortgage insured under this title shall be deemed to be the outstanding principal obligation of the mortgage. "(f) Each mortgage insured under this title shall contain an undertaking (in accordance with regulations prescribed under this title and in force at the time the mortgage is approved for insurance) to the effect that, except as authorized by the Commission and the mortgagee, the property will be used as a group practice facility until the mortgage has been paid in full or the contract of insurance otherwise terminated.

"(g) No mortgage shall be insured under this title unless the mortgagor and the mortgagee certify (1) that they will keep such records relating to the mortgage transaction and indebtedness, to the construction of the facility covered by the mortgage, and to the use of such facility as a group practice facility as are prescribed by the Commissioner at the time of such certification, (2) that they will make such reports as may from time to time be required by the Commissioner pertaining to such matters, and (3) that the Commissioner or any authorized officer or employee of the Federal Housing Administration, or of any agency or institution employed or utilized by the Commissioner for that purpose, shall have access to and the right to examine and audit such records.

"PREMIUMS

"SEC. 1002. The Commissioner shall fix premium charges for the insurance of mortgages under this title, but such charges shall not be more than 1 per centum per annum of the amount of the principal obligation of the mortgage outstanding at any time, without taking into account delinquent payments or prepayments. Such premium charges shall be payable by the mortgagee either in cash, or in debentures issued by the Commissioner under this title at par plus accrued interest, at such times and in such manner as may be prescribed by the Commissioner.

"GROUP PRACTICE FACILITIES INSURANCE FUND

"SEC. 1003. (a) There is hereby established a Group Practice Facilities Insurance Fund (hereafter in this section called the 'Fund') to be used by the Commissioner as a revolving fund to carry out the provisions of this title, and the Commissioner is hereby authorized to transfer to the Fund from time to time from the appropriations provided under section 301 of the Act which enacted this title such sums as he deems necessary to provide capital for the Fund. General expenses of the opinion of the Federal Housing Administration under this title may be charged to the Fund. Moneys in the Fund not needed for

current operations under this title may be invested in bonds or other obligations guaranteed as to principal and interest by the United States. If at any time the Commissioner determines that capital surplus and reserves of the Fund exceed the present and any reasonably prospective future requirements of the Fund, such excesses may be deposited in the Treasury as miscellaneous receipts. "(b) If at any time the moneys in the Fund are insufficient to make payments in connection with the default of any loan insured under this title, the Commissioner is authorized to issue to the Secretary of the Treasury notes or other obligations in such forms and denominations, bearing such maturities, and subject to such terms and conditions as may be prescribed by the Commissioner, with the approval of the Secretary of the Treasury. Such notes or other obligations shall bear interest at a rate determined by the Secretary of the Treasury, taking into consideration the current average market yield on outstanding marketable obligations of the United States of comparable maturities during the month preceding the issuance of such notes or other obligations. The Secretary of the Treasury is authorized and directed to purchase any notes and other obligations to be issued hereunder and for such purpose he is authorized to use as a public debt transaction the proceeds from the sale of any securities issued under the Second Liberty Bond Act, as amended, and the purposes for which securities may be issued under such Act, as amended, are extended to include any purchase of such notes and obligations. The Secretary of the Treasury may at any time sell any of the notes or other obligations acquired by him under this subsection. All redemptions, purchases, and sales by the Secretary of the Treasury of such notes or other obligations shall be treated as public debt transactions of the United States. Funds borrowed under this subsection shall be deposited in the Fund and redemption of such notes and obligations shall be made by the Commissioner from the Fund.

"PAYMENT OF INSURANCE BENEFITS

"SEC. 1004. The mortgagee shall be entitled to receive the benefits of the insurance under this title in the manner provided in subsection (g) of section 207 with respect to mortgages insured under that section. For such purpose the provisions of subsections (e), (h), (i), (j), (k), (1), and (n) of section 207 shall apply to mortgages insured under this title except that all references in such subsections to section 207 shall be deemed to refer to this title and all references in such subsections to the Housing Insurance Fund or the Housing Fund shall be deemed to refer to the Group Practice Facilities Insurance Fund.

"REGULATIONS

"SEC. 1005. The Commissioner shall prescribe such regulations as may be necessary to carry out this title, after consulting with the Surgeon General of the Public Health Service with respect to any health or medical aspects of the program under this title which may be involved in such regulations.

"LABOR STANDARDS

"SEC. 1006. (a) All laborers and mechanics employed by contractors or subcontractors on all construction projects financed with the assistance of mortgages insured under this title shall be paid wages at rates not less than those prevailing on similar construction in the locality as determined by the Secretary of Labor in accordance with the Davis-Bacon Act, as amended (40 U.S.C. 276a— 276a-5).

"(b) The Secretary of Labor shall have, with respect to the labor standards specified in subsection (a), the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176; 5 U.S.C. 133z-15), and section 2 of the Act of June 13, 1934, as amended (40 U.S.C. 276c).

"DEFINITIONS

"SEC. 1007. For the purposes of this title

"(1) The term 'construction cost' means the cost of the construction of a group practice facility, and includes the cost of the erection of new structures and the acquisition, expansion, remodeling, or improvement of existing structures, the cost of necessary acquisition of the land on which the facility is located, and the cost of such equipment as may permitted in regulations.

“(2) The term 'group practice facility' means a facility in a State for the provision of preventive, diagnostic, and treatment services to ambulatory patients (in which patient care is under the professional supervision of persons licensed to practice medicine in the State or, in the case of dental diagonsis or treatment, under the professional supervision of persons licensed to practice dentistry in the State) and which is primarily for the provision of such health services by a medical or dental group.

"(3) The term 'medical or dental group' means a partnership or other association or group of persons licensed to practice medicine or surgery in the State, or of persons licensed to practice dentistry in the State, or of both, who, as their principal professional activity and as a group responsibility, engage or undertake to engage in the coordinated practice of their profession primarily in one or more group practice facilities, and who (in this connection) share common overhead expenses (if and to the extent such expenses are paid by members of the group), medical and other records, and substantial portions of the equipment and the professional, technical, and administrative staffs, and which partnership or association or group is composed of at least such professional personnel and make available at least such health services as may be provided in regulations prescribed under this title.

"(4) The term 'group practice unit or organization' means

"(A) a private agency or organization (including a medical or dental group) undertaking to provide, directly or through arrangements with a medical or dental group, comprehensive medical care or dental care, or both, which may include hospitalization, to members or subscribers primarily on a group practice prepayment basis;

"(B) a public or private nonprofit agency or organization established for the purpose of improving the availability of medical or dental care in the community or having some function or functions related to the provision of such care, which will, through lease or other arrangement, make the group practice facility with respect to which assistance has been requested under this title available to a medical or dental group for use by it; or "(C) a medical or dental group.

"(5) The term 'nonprofit organization' means a corporation, association, foundation, trust, or other organization no part of the net earnings of which inures, or may lawfully inure, to the benefit of any private shareholder or individual except, in the case of an organization the purposes of which include the provision of personal health services to its members or subscribers or their dependents under a plan of such organization for the provision of such services to them (which plan may include the provision of other services or insurance benefits to them), through the provision of such health services (or such other services of insurance benefits) to such members or subscribers or dependents under such plan.

(6) The term 'State' includes the Commonwealth of Puerto Rico, Guam, the Virgin Islands, American Samoa, and the District of Columbia.

"(7) The term 'mortgage' means a first mortgage (A) on real estate, in fee simple, or (B) on such other estate or interest (including a leasehold on which the rental does not exceed 4 per centum of the value of the land) as the Commissioner finds sufficient to assure undisturbed use and possession for a period of not less than fifty years for the purposes of construction and operation of the group practice facility, and for such concurrent period, not exceeding fifty years, as may be necessary to secure the mortgage debt without regard to the use of the mortgaged property. The term 'first mortgage' means such classes of first liens as are commonly given to secure advances (including but not limited to advances during construction) on or the unpaid purchase price of, real estate under the laws of the State in which the real estate is located, together with the credit instrument or instruments, if any, secured thereby, and any mortgage may be in the form of one or more trust mortgages or mortgage indentures or deeds of trust, securing notes, bonds, or other credit instruments, and, by the same instrument or by a separate instrument, may create a security interest in initial equipment, whether or not attached to the realty.

"(8) The term 'mortgagee' includes the original lender under a mortgage, and his or its successors and assigns, and includes the holders of credit instruments issued under a trust mortgage or deed of trust pursuant to which such holders act by and through a trustee named therein.

"(9) The term 'mortgagor' includes the original borrower under a mortgage and his or its successors and assigns."