section 203 program in section 101 of this act. The dollar limit on such a mortgage is increased from $25,000 to $30,000 in the case of a one-family home; from $27,500 to $32,500 in the case of a two-family home; from $30,000 to $32,500 in the case of a three-family home; and from $35,000 to $37,500 in the case of a four-family home. Mortgage limits under section 220 multifamily housing mortgage insurance program

Section 111 amends section 220(d) (3) (B) (i) of such act to increase from $20 million to $30 million the maximum dollar amount of a mortgage insurable (in the case of a private mortgagor) under FHA's section 220 urban renewal multifamily housing program.

Loans to cover the cost of public improvements

Section 112 amends section 220 (h)(1) of such act to provide FHA insurance (under both the sec. 203 (k) home improvement loan program and the sec. 220(h) home and project improvement loan program) for loans made to enable the borrower to pay municipal assessments or charges against his property, such as for water or sewer facilities, sidewalks, curbs, street paving, street lights, or other public improvements, which he is legally liable to pay. The home improvement loan programs were previously limited to the financing of repairs or improvements made directly to the homeowner's property. The aggregate insured home improvement loans to any one borrower, including the new purpose, under both programs cannot exceed $10,000, and the maximum interest rate and maturity (6 percent and 20 years) is the same as for other loans under those programs. Home improvement loans on property held under lease

Section 113 amends section 220(h) (2) (vi) of such act to provide that an improvement loan may be insured under that section or section 203 (k) when made to a lessee of property if the term of the lease will run more than 10 years beyond the maturity of the loan. Under previous law, for such a loan to be insurable the lease (unless it was a 99-year lease which was renewable) had to have at least 50 years to run from the date of the loan.

FHA section 221 housing for low- or moderate-income persons

Section 114(a) amends section 221(d)(3) of such act to permit any mortgagor (which could include a trust, partnership, or individual) approved by the Federal Housing Commissioner to be a mortgagor under the below-market rental housing program for low- and moderate-income families authorized by that section if the mortgagor is regulated by the Commissioner as to profits, rents, charges, and methods of operation in a manner that will effectuate the purposes of the program.

Subsection (b) adds language to section 221 (e) (1) of such act to provide that the Commissioner may approve as a mortgagor under the below-market rental housing program a mortgagor which has entered into an agreement with a private nonprofit corporation eligible for an insured mortgage under the program that the mortgagor will sell the project when it is completed to the corporation at the actual cost of the project. The mortgagor to whom the property is sold shall be regulated by the Commissioner by imposing occupancy restrictions, income limits on tenants, low rentals, and other restrictions which will carry

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out the purpose of providing housing for low- or moderate-income families or persons.

Subsection (c) amends section 221(d) (3) of such act to provide that in the case of a mortgagor other than a nonprofit corporation or association, cooperative (including an investor-sponsor), or public body, or a mortgagor described in subsection (b) of this section, the amount of the mortgage could not exceed 90 percent of the amount authorized under section 221.

Subsection (d) amends section 221 (f) of such act to extend the expiration date of the section 221 mortgage insurance program for low- or moderate-income housing from June 30, 1965, to September 30, 1965.

Mortgage insurance for servicemen

Section 115 amends section 222(b) of such act to extend the special procedures of FHA's program of mortgage insurance for servicemen to mortgages which meet the requirements of the section 221(d) (2) program (housing for moderate-income and displaced families). Under previous law the section 222 program was limited to mortgages meeting the criteria of section 203(b) or section 203 (i). Maximum mortgage amounts under section 221(d) (2) begin at $11,000 ($15,000 in a high-cost area) for a single-family home.

Private financing of sale of FHA-acquired properties

Section 116 amends section 223 (c) of such act to permit FHA to insure mortgage loans financing the purchase of FHA-acquired property without regard to any of the limitations or requirements that would otherwise apply, except that in case of default insurance benefits must still be paid to the lender in debentures. Under previous law the Commissioner could disregard requirements relating to the eligibility of a mortgage but was otherwise bound by all applicable limitations and requirements.

Mortgage insurance for nonprofit nursing homes

Section 117 amends section 232(b)(1) of such act to make private nonprofit nursing homes eligible for FHA-insured mortgages to finance their construction or rehabilitation on the same basis as proprietary nursing homes (to which the program was previously limited).

Experimental housing

Section 118 amends several provisions of section 233 of such act to make insurance available under FHA's experimental housing program for mortgages or improvement loans meeting the requirements of any of FHA's other title II programs. Under previous law a mortgage could not be insured under the experimental housing program unless it met the requirements of section 203(b) or section 207. The special provisions of section 233 with respect to the Commissioner's estimate of value or cost, and nonoccupant owners, are broadened so as to apply to all mortgages or loans qualifying under the amended provisions.

The housing must involve the utilization or testing of new design, materials, construction methods, or experimental property standards for neighborhood design in order for the loan to be eligible for insurance under the experimental housing program.

Mortgage insurance for condominiums

Section 119 amends section 234 of such act to make changes in FHA's mortgage insurance program for the sale of family units in condominiums.

Increases are provided in the maximum amount and maturity of mortgages financing purchases of family units in condominiums. The maximum amount of such a mortgage could not exceed $30,000; the minimum required downpayment would be 3 percent of the first $15,000 of the family unit's appraised value, plus 10 percent of such value above $15,000 but not in excess of $20,000, plus 25 percent of such value above $20,000, and a maximum maturity of 35 years would be permitted.

Insurance is authorized for blanket mortgages to finance the construction or rehabilitation of multifamily projects to be sold as condominiums, provided the mortgagor certifies to FHA that it intends to sell the project as a condominium and will make all reasonable efforts to sell the family units to FHA-approved purchasers. (Under previous law, the multifamily structure must have been financed with an insured mortgage under one of FHA's multifamily housing programs.) Such a blanket mortgage could not exceed 90 percent of the project's replacement cost, or $20 million ($25 million in the case of a mortgagor which is regulated or supervised under another Federal law or under State or local law); and could not exceed an amount per family unit determined under the same formula as that provided for FHA rental housing pursuant to the amendments made by section 107 of this act. The interest rate could not exceed 54 percent, and the mortgage maturity could not exceed 40 years. The individual family units will be released from the blanket mortgage as they are sold.

This section also makes various other changes in the condominium program, including provisions permitting condominiums to consist of more than one structure and provisions permitting an investor-sponsor cooperative to be converted into a condominium."

Prepayment of mortgages by nonprofit educational institutions

Section 120 adds to title V of such act a new section 517, which prohibits the collection (after July 1, 1962) of an adjusted premium charge in connection with the payment in full of an FHA-insured mortgage prior to its maturity in any case where such payment is made by or on behalf of a nonprofit educational institution which intends to use the property involved for educational purposes. Correction of substantial defects in mortgaged homes

Section 121 amends title V of such act by adding a new section which enables FHA, if the builder does not provide relief, to aid distressed homeowners who find structural defects in their properties purchased with FHA-insured loans. FHA can correct the defects, pay the homeowner's claim on account of the defects, or acquire the property. The authority is available for new homes covered by mortgages insured after enactment of the Housing Act of 1964. Requests for relief must be received by FHA not later than 4 years after insurance of the mortgage or shorter periods if the FHA so requires.

TITLE II-HOUSING FOR THE ELDERLY AND HANDICAPPED

Housing for the elderly-loan program

Section 201 amends section 202(a) (4) of the Housing Act of 1959 to increase by $75 million (from $275 to $350 million) the total amount authorized to be appropriated to the Housing and Home Finance Administrator for direct loans for housing for the elderly.

FHA section 221 housing for low- or moderate-income elderly persons Section 202 amends section 221 (f) of the National Housing Act to make individual elderly persons (i.e., persons 62 years of age or over) eligible the same as families to purchase or occupy sales or rental housing financed under FHA's section 221 program for low- and moderate-income and displaced families. This program includes the low-rent housing financed with FHA-insured mortgages which bear below-market-interest rates and on which waiver of mortgage insurance premiums is permitted.

Housing for the handicapped

Section 203 amends various provisions of the housing laws to provide under those laws the same special treatment for handicapped persons and families as is provided for the elderly. For this purpose a person is considered handicapped if he is determined by the Housing and Home Finance Administrator to have a physical impairment which is expected to be of long-continued and indefinite duration, substantially impedes his ability to live independently, and is of such a nature that this ability could be improved by more suitable housing conditions. (Sec. 201 of the bill, supra, increases by $75 million the appropriations authorized for the title II loan program.)

Subsection (a) amends title II of the Housing Act of 1959 to authorize direct loans by the Housing and Home Finance Administrator to provide rental housing for the handicapped in addition to the loans previously authorized to provide rental housing for the elderly.

Loans under this program can be made to nonprofit corporations, cooperatives, or public bodies. The loans bear interest at the present time at the rate of 34 percent per annum, and can be repaid over a period of not more than 50 years.

Subsection (b) amends section 221(f) of the National Housing Act (as amended by sec. 202 of this act) to provide that a single handicapped person, like a single elderly person, shall be considered a "family" for purposes of the section 221 program and is therefore eligible to occupy the FHA housing provided under that program for low- and moderate-income families.

Subsection (c) amends section 231 of the National Housing Act (the FHA mortgage insurance program for the elderly) to authorize insurance of mortgages to provide rental housing for the handicapped.

Subsection (d) amends section 2 (2) of the U.S. Housing Act of 1937 (as amended by sec. 401(a) of this act) to permit the handicapped individuals, like elderly individuals, to be eligible for low-rent public housing if they have low incomes.

Subsection (e) amends section 207 of the Housing Act of 1961 to include housing for handicapped persons within the program of grants for demonstrations of new or improved means of providing housing for low-income persons and families.

Code enforcement

TITLE III-URBAN RENEWAL

URBAN RENEWAL AMENDMENTS

Section 301 makes various changes in title I of the Housing Act of 1949 to encourage more intensive efforts in code enforcement under the urban renewal program.

Subsection (a) amends section 101 (c) of the 1949 act to provide that (beginning 3 years after enactment of the Housing Act of 1964) no workable program, as defined in that section, will be certified or recertified unless the locality involved has had in effect for at least 6 months an adequate minimum standards housing code and is carrying out an effective program of enforcement to achieve compliance with such code.

Subsection (b) amends section 110 (c) of the 1949 act to authorize a new type of urban renewal project which may consist entirely or substantially of a program of code enforcement in an urban renewal

area.

Subsection (c) further amends section 110 (c) of the 1949 act to permit the cost of code enforcement activities carried out in clearance and redevelopment projects and in rehabilitation or conservation projects to be included as a part of eligible project costs.

However, expenditures for code enforcement activities authorized to be assisted under the provisions of subsection (b) or (c) of this section can be included as an eligible project cost only if the community agrees to increase its total expenditures for code enforcement activities by an amount equal to its share of the project cost attributable to the code enforcement activities in the project area.

Subsection (d) amends title I of the 1949 act to permit existing capital grant contracts to be amended to permit the cost of code enforcement activities incurred in urban renewal areas after the date of enactment of the act to be included as part of gross project cost.

Self-help programs for community improvement

Section 302 amends section 101 (d) of the 1949 act to authorize the Housing and Home Finance Administrator to include in the urban renewal services which he is authorized to furnish to communities any assistance requested in the development of self-help programs, such as rehabilitation projects not requiring Federal financial assistance and self-liquidating redevelopment projects.

Loan contract for two or more projects

Section 303 amends sections 102(a) and 110(g) of the 1949 act to permit the Administrator to enter into a single contract with a local public agency to provide the temporary financing needed for two or more urban renewal projects.

Capital grant authorization

Section 304 amends section 103(b) of the 1949 act to increase by $725 million the aggregate amount of grants which the Administrator may make under the urban renewal program.

Relocation of displacees from urban renewal areas

Section 305(a) amends section 105(c) of the 1949 act to require that (with respect to any urban renewal project receiving Federal recognition after the enactment of the Housing Act of 1964) there