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CHAPTER V-FEDERAL HOUSING ADMINISTRATION

N. B.: Dates appearing in the citations of source of documents codified in this chapter, such as dates of issuance, approval, or effectiveness, are obtained from the original document. For general statutory provisions governing effective dates, validity, and constructive notice see section 7 of the Federal Register Act (49 Stat. 502; 44 U.S.C. 307) and sections 3 and 4 of the Administrative Procedure Act (60 Stat. 238; 5 U.S.C. 1002, 1003).

NOTE: The Federal Housing Administration was consolidated as a constituent agency within the Housing and Home Finance Agency, by Reorganization Plan No. 3 of 1947, Title 3, Chapter IV, supra.

Part

500 General. [Amended]

Subchapter A—Property Improvement Loans

501 Class 1 and Class 2 property improvement loans. [Revised] 502 Class 3 property improvement loans. [Revised]

Subchapter F-National Mortgage Associations

561 Regulations under Title III of the National Housing Act. [Amended]

Subchapter H-War Housing Insurance

577 Administrative regulations for war housing insurance under section 603 of the National Housing Act. [Amended] 578 Administrative rules for war housing insurance under section 603 of the National Housing Act pursuant to section 610. [Added]

Subchapter I-War Rental Housing Insurance

580 Administrative rules for war rental housing insurance under section 608 of the National Housing Act. [Revised] 581 Administrative rules for war rental housing insurance under section 608, National Housing Act, for mortgages exceeding $200,000.00. [Superseded] 582 Administrative regulations for war rental housing insurance under section 608 of the National Housing Act applicable to all mortgages insured under section 608. [Amended] 583 Administrative rules under section 608, pursuant to section 610, of Title VI of the National Housing Act. [Added]

Subchapter J-House Manufacturing Loans, War Housing Insurance [Added]

585 Administrative rules of the Federal Housing Commissioner under section 609 of the National Housing Act.

586 Regulations of the Federal Housing Commissioner under section 609 of Title VI of the National Housing Act.

ABBREVIATIONS: The following abbreviations are used in this chapter:

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[Amended]

500.32 Title I Insurance. 500.37 Insurance of loans for the manufacture of houses, section 609, Title VI, National Housing Act. [Added]

Subpart E-Statements of Policy and Interpretation 500.100 Title I Insurance. [Amended] Subpart B-Delegations of Authority and Assignment of Duties

AUTHORITY: §§ 500.11 to 500.14, inclusive, issued under secs. 3, 12, 60 Stat. 238, 244; 5 U.S.C. 1002, 1011.

SOURCE: $ 500.11 to 500.14, inclusive, contained in Regulations, Assistant Commissioner, Administrative Services, Aug. 21, 1947, 12 F.R. 5774, except as noted following provisions affected.

§ 500.11 Citation of authority. Section 1 of Title I of the National Housing Act provides in part as follows:

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In order to carry out the provisions of this title and titles II, III and VI, the Administrator may establish such agencies, accept and utilize such voluntary and uncompensated services, utilize such federal officers and employees, and, with the consent of the State, such State and local officers and employees, and appoint such other officers and employees as he may find necessary, and may prescribe their authorities, duties, responsibilities, and tenure and fix their compensation, without regard to the provisions of other laws applicable to the employment of compensation of officers or employees of the United States. The Administrator may delegate any of the functions and powers conferred upon him under this title and titles II, III and VI to such officers, agents, and employees as he may designate or appoint

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Section 3 of Reorganization Plan No. 3 of 1947, effective July 27, 1947 (Title 3, Chapter IV, supra), provides in part as follows:

Federal Housing Administration. The Federal Housing Administration shall be headed by a Federal Housing Commissioner

There are transferred to said Commissioner the functions of the Federal Housing Administrator.

§ 500.12 Designation of acting commissioner. Pursuant to the authority cited in § 500.11, the officials of the Federal Housing Administration named in this section are hereby designated to act in place and stead of the Commissioner with the title of "Acting Commissioner" with all of the powers, duties and rights conferred upon the Commissioner by the National Housing Act, as Amended, Reorganization Plan No. 3 of 1947, by any other act of Congress or by any Executive order, in the event of absence, illness or inability of the Commissioner to act: Provided, That no official named below shall have authority to act as "Acting Commissioner" unless all those whose names appear before his are absent from their official post or unable to act:

(a) Walter L. Greene, First Assistant Commissioner.

(b) Burton C. Bovard, General Counsel.

(c) M. R. Massey, Assistant Commissioner, Field Operations.

(d) Curt C. Mack, Assistant Commissioner, Underwriting.

(e) Clyde L. Powell, Assistant Commissioner, Rental Housing and Property Management.

(f) R. Winton Elliott, Assistant Commissioner, Administrative Services.

(g) Arthur J. Frentz, Assistant Commissioner, Title I.

§ 500.13 Specific delegations to named positions. Pursuant to the authority cited in § 500.11, the following assignment of duties and delegations of functions and powers are hereby made:

(a) First assistant commissioner. To the position of First Assistant Commissioner:

(1) To assist the Commissioner in the general administration and coordination of all functions of the Administration.

(2) To approve or cancel the approval of financial institutions as approved mortgagees, insured institutions or approved lenders.

(3) In connection with the sale of properties conveyed to the Commissioner to execute in my official name, as my agent, all deeds or other documents or instruments in connection with the conveyance of title thereto and deeds of release, assignments, or satisfactions of

mortgages, deeds of trust, or other liens taken as security in connection therewith.

(4) To execute the power and authority vested in the Commissioner 'under section IV of the regulations governing property and obligations held by the Federal Housing Commissioner and approved by the Secretary of the Treasury.1

(b) Assistant commissioner, field operations. To the position of Assistant Commissioner, Field Operations, and under his general supervision (except with respect to the authority contained in subparagraphs (9) and (10) of this paragraph) to the position of Assistant to such Assistant Commissioner.

(1) To approve or cancel the approval of financial institutions as approved mortgagees, insured institutions, or approved lenders.

(2) To issue commitments for insurance and to execute insurance contracts pursuant to such commitments.

(3) To approve a change in amount, a change of the term, or any other modification of commitments for insurance or of insurance contracts.

(4) To consent to the release of mortgagors.

(5) To consent to the release of portions of the mortgaged property from the lien of the mortgage.

(6) To approve the insurance of mortgages taken as security in connection with the sale of all properties conveyed to the Federal Housing Commissioner, including the authority to determine the value of such properties and facts relating to the eligibility of such mortgages for insurance.

(7) To execute Certificates of Claim and requisitions to the Treasury Department for the issuance of debentures.

(8) To execute assignments, releases or satisfactions of mortgages taken by the Commissioner as security in connection with the sale of acquired properties.

(9) In connection with the sale of properties conveyed to the Commissioner to execute in my official name, as my agent, all deeds or other documents or instruments in connection with the conveyance of title thereto and deeds of release, assignments, or satisfactions of mortgages, deeds of trust, or other liens

1 Not filed with the Division of the Federal Register.

taken as security in connection therewith.

(10) To execute the power and authority vested in the Commissioner under section IV of the regulations governing property and obligations held by the Federal Housing Commissioner and approved by the Secretary of the Treasury.

(11) To direct the administration of Field Offices and to initiate and recommend to the Commissioner policies and procedures with respect thereto.

(12) To issue, Property Eligibility Statements or Commitments or any similar forms which may be provided in connection with Class 3 loans under the regulations issued pursuant to Title I, section 2, of the National Housing Act.

(13) To reject or accept for insurance loans or advances of credit made under the provisions of section 2 of Title I that require the prior approval of the Federal Housing Commissioner.

(14) To execute applications or other documents in connection with any functions which the Federal Housing Administration may perform for any other agency or agencies of the United States.

(c) Assistant commissioner, underwriting. To the position of Assistant Commissioner, Underwriting, and in his absence or inability to act (except with respect to the authority contained in subparagraphs (3) and (4) of this paragraph) to the Assistant to such Assistant Commissioner:

(1) To be directly responsible to the Commissioner for all mortgage underwriting activities, including valuation of realty, land planning, architecture and credit analyses, analyses of locations, subdivisions and areas and construction cost determination.

(2) To plan, supervise, instruct in and review the work of the technical programs and procedures, including; the establishment of eligibility.requirements as to property standards, minimum construction requirements and new methods of dwelling construction for projects insured by the Federal Housing Administration; cooperation with industry and governmental agencies in the development of engineering methods, materials. mechanical equipment and architectural planning and design. Dissemination to the field offices and to the public of technical material on planning and construction; preparation of estimates and other studies on the use of materials.

(3) To execute the power and authority vested in the Commissioner under section IV of the regulations governing property and obligations held by the Federal Housing Commissioner and approved by the Secretary of the Treasury.

(4) In connection with the sale of properties conveyed to the Commissioner to execute in my official name, as my agent, all deeds or other documents or instruments in connection with the conveyance of title thereto and deeds of release, assignments, or satisfactions of mortgages, deeds of trust, or other liens taken as security in connection therewith.

(d) Assistant Commissioner, Rental Housing and Property Management. To the position of Assistant Commissioner, Rental Housing and Property Management, and (except with respect to the authority contained in subparagraphs (8) and (9) of this paragraph) under his general supervision to the position of Assistant to such Assistant Commissioner:

(1) To issue commitments for insurance and to execute insurance contracts under sections 207 and 608.

(2) To approve the increase in amount, the extension of term, or any other modification of commitments for insurance or of insurance contracts under sections 207, 210, and 608.

(3) To approve or disapprove "change orders" during construction under sections 207 and 608.

(4) To approve or cancel the approval of financial institutions as approved mortgagees, insured institutions, or approved lenders.

(5) To consent to the release of mortgagors and to the release of portions of. the mortgaged property from the lien of the mortgage, with respect to mortgages insured under sections 207, 210, and 608.

(6) To approve or disapprove for insurance advances of mortgage money during construction under sections 207 and 608 and to execute such instruments as may be necessary in connection therewith.

(7) To operate and manage all properties conveyed to the Federal Housing Commissioner, including authority with respect to such properties, to:

(i) Approve all offers to rent or purchase, except that offers to purchase properties acquired under sections 207 or 608, or offers to buy a group of 10

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or more properties acquired under other sections of the act, shall be subject to the approval of the Commissioner and shall be accompanied by the recommendations of the Property Sales Committee,

(ii) Execute such contracts, leases, assignments and other instruments as may be necessary in the rental or sale of such properties,

(iii) Employ brokers or managers, (iv) Make repairs, alterations, and improvements,

(v) Authorize expenditures.

(8) In connection with the sale of properties conveyed to the Commissioner, to execute in my official name, as my agent, all deeds or other documents or instruments in connection with the conveyance of title thereto, and deeds of release, assignments or satisfactions of mortgages, deeds of trust, or other liens taken as security in connection therewith.

(9) To execute the power and authority vested in the Commissioner under section IV of the regulations governing property and obligations held by the Federal Housing Commissioner and approved by the Secretary of the Treasury.

(10) To execute Certificates of Claim and requisitions to the Treasury Department for the issuance of debentures.

(11) To approve the insurance of mortgages taken as security in connection with the sale of all properties conveyed to the Federal Housing Commissioner, including the authority to determine the value of such properties and facts relating to the eligibility of such mortgages for insurance.

(12) To approve the sale, assignment, or modification in the terms of, and authorize the foreclosure of, mortgages assigned to the Federal Housing Commissioner in exchange for debentures, and the sale and terms of sale of all mortgages taken as security in connection with the sale of properties conveyed to the Federal Housing Commissioner, except that offers to purchase mortgages acquired under sections 207 or 608 shall be subject to the approval of the Commissioner and shall be accompanied by the recommendation of the Property Sales Committee.

(e) Assistant commissioner, administrative services. To the position of Assistant Commissioner, Administrative Services, and in his absence or inability

to act (except with respect to the authority contained in subparagraphs (12) and (13) of this paragraph), to the Assistant to such Assistant Commissioner:

(1) To have supervision and direction over the Personnel Division, the Washington Office Management Division, and the Budget Division.

(2) To maintain an administrative planning program, including the recommendation to the Commissioner of organizational changes within divisions and offices and the study of improvements in organization, space requirements, procedure and forms.

(3) With respect to personnel, to make appointments, promotions, transfers, demotions, separations, and classifications; to fix the administrative work week, to order or approve overtime work in excess of any that may be included in the regularly scheduled administrative work week, and to prescribe rules and regulations regarding overtime.

(4) To approve telephone contracts. (5) To execute leases of property for FHA use.

(6) To issue orders for travel in accordance with the Standardized Government Travel Regulations, as amended, and the Independent Offices Appropriation Act, including authorization for travel by air and extra fare train in accordance with Circular No. 355, Executive Office of the President, dated April 16, 1940, and amendments thereto, and for travel incident to permanent change of station in accordance with the Treasury and Post Office Departments Appropriation Act; to approve travel performed and expense incurred on account of an emergency or without prior authority in accordance with paragraph 7 of the Standardized Government Travel Regulations, as amended, and to approve and authorize the transportation of household goods and personal effects at government expense in accordance with Executive Order 8588 and amendments thereto, and any other Executive Orders providing for the approval and authorization by the head of an Agency with respect to the transportation of household goods and personal effects at Government expense.

(7) To issue purchase orders, including printing and binding requisitions to the Government Printing Office. (See Sec. 3828, Rev. Stat.)

(8) To incur obligations and authorize expenditures for services and for the purchase of equipment, materials, and supplies other than in connection with acquired properties.

(9) To approve all agreements involving reimbursements, including agreements with others for the performance of any function by or on behalf of the Federal Housing Administration, after first obtaining the recommendation of any division affected.

(10) To issue orders for publications of notices and advertisements in newspapers, magazines, and periodicals. (See R.S. 3828)

(11) To execute contracts for services and for the purchase of equipment, materials, and supplies, including contracts for materials, equipment, supplies and services, for the maintenance and operation of acquired properties.

(12) To execute the power and authority vested in the Commissioner under section IV of the regulations governing property and obligations held by the Federal Housing Commissioner and approved by the Secretary of the Treasury.

(13) In connection with the sale of properties conveyed to the Commissioner to execute in my official name, as my agent, all deeds or other documents or instruments in connection with the conveyance of title thereto and deeds of release, assignments, or satisfactions of mortgages, deeds of trust, or other liens taken as security in connection therewith.

(14) To certify that official long-distance telephone calls made were necessary in the interest of the Government, pursuant to section 4 of the act approved May 10, 1939 (53 Stat. 738).

(f) Assistant Commissioner, Title I. To the position of Assistant Commissioner, Title I, and in his absence or inability to act (except as specified in subparagraphs (4) and (5) of this paragraph) to the Assistant to such Assistant Commissioner with respect to the insurance of loans or advances of credit made under the provisions of section 2 of Title I of the National Housing Act.

(1) To approve or cancel the approval of financial institutions as approved mortgagees, insured institutions or approved lenders.

(2) To issue and cancel Contracts of Insurance under Title I and to transfer such contracts and the rights and bene

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