bursement or compensation is not otherwise made): Provided, That such payments shall not exceed $200; And provided further, That the Administrator may authorize payment to individuals and families of fixed amounts (not to exceed $200 in any case) in lieu of their respective reasonable and necessary moving expenses and actual direct losses of property; and

"(ii) A local public agency may pay (in addition to any amount under (i)) to any displaced family, or to any displaced individual 62 years of age or over. a monthly payment, for not to exceed 24 months, equal to one-twelfth of the amount which, when added to 20 percent of the annual income of such displaced individual or family at the time of its displacement, equals the average annual rental required for a decent, safe and sanitary dwelling of modest standards adequate in size to accommodate the displaced individual or family (in the urban renewal area or in other areas not generally less desirable in regard to public utilities and public and commercial facilities): Provided, That this monthly payment shall be available only to such individual or family who is displaced on or after January 27, 1964, and whose income is below the limits established to determine eligibility for admission to housing constructed or to be constructed in the locality under the provisions of section 221(d) (3) of the National Housing Act. and such payment shall not exceed the estimated proportionate amount, attributable to a dwelling unit of comparable size and type, of the fixed annual contribution for the most recently constructed low-rent housing project assisted under the United States Housing Act of 1937 in the same locality or the nearest locality of comparable size and in which there exists comparable cost levels: Provided further, That such payment shall be made only to such individual or family who is unable to secure a dwelling unit in a low-rent housing project assisted under the United States Housing Act of 1937 or under a State or local program found by the Administrator to have the same general purposes as the Federal program under such Act.

"(d) The Administrator is authorized to establish such rules and regulations as he may deem appropriate in carrying out the provisions of this section. Except as may be provided in any contract between the Administrator and a local public agency, or in regulations promulgated by the Administrator, determinations of any duly designated officer or agency as to eligibility for and the amount of relocation assistance authorized by this section shall be final and conclusive for any purposes and not subject to review by any court or any other officer.

"(e) If a family or individual receiving payments under subsection (c) (ii) of this section is a displaced family or individual for the purposes of any priority or preference in admission to housing assisted under the United States Housing Act of 1937 or section 221 of the National Housing Act, the individual or family, if otherwise eligible for admission to such housing, shall retain such priority or preference at the end of the period for which such payments are made.”

(b) Any contract with a local public agency which was executed under this title before the date of enactment of this Act may be amended to provide for payments authorized by this section.

(c) Section 106 of the Housing Act of 1949 is amended by striking out all of subsection (f) and redesignating subsection (g) as subsection (f).

REHABILITATION ASSISTANCE TO ELDERLY HOMEOWNERS IN URBAN RENEWAL AREAS

SEC. 102. (a) Section 220(h) of the National Housing Act is amended by adding the following at the end thereof:

“(11)(A) To assist further in the improvement of the homes of elderly persons of low or moderate incomes in urban renewal areas and to avoid their displacement when their homes can be improved to meet standards prescribed for the area by the urban renewal plan, a home improvement loan bearing interest at the same rate prescribed by the Commissioner for those mortgages which are insured under section 221(d) (3) on the basis of determinations made by the Secretary of the Treasury pursuant to the proviso in section 221 (d) (5), may be insured under this subsection if—

"(i) the borrower is 62 years of age or over and qualifies as a low- or moderate-income person or family in accordance with such regulations and requirements as may be prescribed by the Commissioner;

"(ii) the property, when improved with the proceeds of the loan, will meet the standards prescribed for the area by the urban renewal plan;

"(iii) the property to be improved is a one- or two-family home owned and occupied by the borrower; and

"(iv) the instrument evidencing the obligation of the loan contains such provisions as may be prescribed by the Commissioner, including provisions that any outstanding balance of the loan shall become due and payable upon the transfer of title to the property by the borrower or in event of death of the borrower (or the death of the surviving spouse of the borrower). (B) Notwithstanding any other provisions of this Act, the instrument evidencing the obligation of a loan insured under this paragraph may permit repayment of the principal amount of the loan to be deferred until the death of the borrower (or the death of the surviving spouse of the borrower) or the transfer of title to the property by the borrower, if the amount of the loan creates a total outstanding indebtedness which does not exceed 75 per centum of the sum of the estimated cost of improvement and the Commissioner's estimate of the value of the property before improvement.

"(C) Notwithstanding any other provision of this Act, a home improvement loan insured pursuant to this paragraph may be insured with no premium charge, with a reduced premium charge, or with a premium charge for such period or periods during the time the insurance is in effect as the Commissioner may determine. There is hereby authorized to be appropriated, out of any money in the Treasury not otherwise appropriated, such amounts as may be necessary to reimburse the section 220 home improvement account for any net losses in connection with insurance under this paragraph."

(b) Section 220 (d)(3)(A) is amended by adding the following clause at the end thereof:

(v) in a case of a mortgagor who is 62 years of age or over, who occupies a one- or two-family home, and who qualifies as a low- or moderate-income person in accordance with such regulations and requirements as may be prescribed by the Commissioner, the Commissioner may insure a mortgage, involving substantial repair or rehabilitation, and refinancing, bearing interest at the same rate as prescribed by the Commissioner for those mortgages which are insured under section 221 (d) (3) on the basis of determinations made by the Secretary of the Treasury pursuant to the proviso in section 221(d) (5), and which involves a principal obligation not in excess of $10,000: Provided, That the mortgage contains a provision that any outstanding balance of the loan shall become due and payable upon transfer of title to the property by the mortgagor or in the event of death of the mortgagor (or the death of the surviving spouse of the mortgagor): Provided further, That if the mortgage to be insured does not exceed 75 per centum of the sum of the estimated cost of the repair and rehabilitation and the Commissioner's estimate of the value of the property before such repair and rehabilitation, the mortgage may provide that repayments to amortize the principal amount may be deferred until the death of the mortgagor (or the death of the surviving spouse of the mortgagor) or the transfer of the property: And provided further, That notwithstanding any other provisions of this Act. a mortgage may be insured pursuant to this clause with no premium charge, with a reduced premium charge, or with a premium charge for such period or periods during the time the insurance is in effect, as the Commissioner may determine; and there is hereby authorized to be appropriated, out of any money in the Treasury not otherwise appropriated, such amounts as may be necessary to reimburse the section 220 Housing Insurance Fund for any net losses in connection with insurance under this clause; or".

TITLE II-MORTGAGE INSURANCE PROGRAMS

LAND DEVELOPMENT

SEC. 201. The National Housing Act is amended by adding at the end thereof the following new title:

"TITLE X-MORTGAGE INSURANCE FOR LAND DEVELOPMENT

"PURPOSE

"SEC. 1001. The purpose of this title is (1) to assist in the provision of sites for residential and related uses which are properly planned and improved to provide a suitable living environment, maintain property values, and contribute to sound and economic community growth, and (2) to encourage more orderly urban growth and development through assistance in the establishment of new communities which are so situated and planned as to permit the most efficient use of public facilities, provide a basis for well-balanced economic development,

conserve land resources, and meet the housing and related needs of families with varying incomes and personal requirements.

"SEC. 1002. As used in this title

"DEFINITIONS

"(1) the term 'mortgage' means a lien on real estate in fee simple, or on a leasehold under a lease for not less than ninety-nine years which is renewable; and the term 'first mortgage' includes 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 may be in the form of trust mortgages or mortgage indentures or deeds of trust securing notes, bonds, or other credit instruments;

"(2) the terms 'mortgagee', 'mortgagor', and 'State' shall have the same meaning as when used in section 207 of this Act;

"(3) the term 'improvements' means water lines and water supply installations, sewer lines and sewage disposal installations, roads, streets, curbs. gutters, sidewalks, storm drainage facilities, and other installations or work, whether on or off the site of the mortgaged property, which the Commissioner deems necessary or desirable to prepare land primarily for residential and related uses or to provide community structures or other similar facilities for public or common use;

"(4) the term 'basic community systems improvements' means major transmission lines and related plants for water or sewer systems serving new communities;

"(5) the term 'land development' means the process of making, installing, or constructing improvements, including basic community systems improvements;

"(6) the term 'new community' means a locality so established and planned as to provide, on a balanced and internally cohesive basis, the housing, facilities, services, and amenities suitable and appropriate for urban living;

"(7) the term 'local public body' means a county, city, or other political subdivision within which a new community or part of a new community is established, and any other political subdivision, public agency, or instrumentality of one or more States, counties, or political subdivisions empowered under law to take or withhold any action required in connection with the establishment of a new community.

"BASIC CONDITIONS FOR INSURANCE

"SEC. 1003. (a) The Commissioner is authorized to insure, upon such terms and conditions as he may prescribe, any first mortgage (including advances on such mortgage during land development) in accordance with the provisions of this title and to make commitments for the insurance of such mortgage prior to the date of its execution or disbursement thereon; but no mortgage shall be insured under this title after October 1, 1968, except pursuant to a commitment to insure issued before such date.

"(b) To be eligible for mortgage insurance under this title a mortgage shall

"(1) be executed by, and cover property held by, a mortgagor approved by the Commissioner;

"(2) be made to and be held by a mortgagee approved by the Commissioner;

"(3) cover the land developed and the improvements made with the assistance of the mortgage insurance unless they are in public ownership; "(4) have a maturity and contain repayment provisions satisfactory to the Commissioner;

"(5) bear interest (exclusive of premium charges for mortgage insurance and such service charges and fees as may be approved by the Commissioner) at a rate satisfactory to the Commissioner, but not to exceed 6 per centum per annum on the amount of the principal obligation outstanding at any time; and

"(6) contain such terms and provisions with respect to protection of the security, payment of taxes, delinquency charges, prepayment, additional and secondary liens, and other matters as the Commissioner may in his discretion prescribe.

"(e) The Commissioner may consent to the release of a part or parts of the mortgaged property from the lien of the mortgage on such terms and conditions as he may prescribe.

(d) The Commissioner may, under such terms and conditions as he may prescribe, consent to the subordination of the lien of the mortgage insured under this title to the lien of a mortgage upon a part or parts of the mortgaged property where the subordination is necessary to obtain financing for construction of a dwelling or dwellings for which application for insurance of permanent financing under any other title of this Act has been made.

"(e) In order for any mortgage to be accepted for insurance under this title(1) the property or project shall represent an acceptable risk to the Land Development Insurance Fund, as established by section 1008 of this title, giving consideration to the expected contribution of the land development to sound and economic community growth and urban development: "(2) the improvements shall comply with all applicable State and local governmental requirements and with minimum standards approved by the Commissioner;

"(3) the land development shall be in accordance with a plan or plans consistent with a comprehensive plan which covers, or with comprehensive planning being carried on for, the area in which the land is situated and which meets criteria established by the Housing and Home Finance Administrator for such comprehensive plans or planning;

"(4) the land development shall be undertaken and carried on with a view to assuring, under such requirements and procedures as the Commissioner shall prescribe, the use of such 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 “(5) the land developed or new community shall be served by public systems for water supply and sewerage consistent with other existing or prospective systems in the area: Provided, That if the Commissioner finds that a public system for water or sewerage is not feasible, he may, under such assurances and conditions as he may require with respect to eventual public ownership and operation, approve an adequate privately or cooperatively owned system regulated in a manner acceptable to the Commissioner with respect to user rates and charges, capital structure, methods of operation, and rate of return.

"SPECIAL CONDITIONS-NEW COMMUNITIES

"SEC. 1004. In the case of land development in connection with the establishment of a new community, a mortgage may be insured only if it is otherwise eligible and acceptable for insurance under section 1003 of this title and only subject to the following conditions:

"(1) the mortgage shall involve a principal obligation in an amount (A) in the case of basic community systems improvements, not to exceed the sum of 75 per centum of the estimated value of the land before land development, and 90 per centum of the estimated cost of land development, as such land and land development are required by or attributable to such improvements, or (B) in the case of other land development, not to exceed 75 per centum of the estimated value of the security as of the completion of the development to be financed with assistance under this title, and not to exceed the sum of 75 per centum of the estimated value of the land before land development and 75 per centum of the estimated cost of such land development: Provided, That the aggregate of principal obligations of mortgages insured under this title with respect to any one new community shall not exceed $50,000,000;

"(2) the new community site shall have been approved by the appropriate local public body or bodies, in accordance with procedures acceptable to the Housing and Home Finance Administrator;

"(3) the land development shall be in accordance with a detailed plan which has been approved by the Housing and Home Finance Administrator as providing reasonable assurance that the new community will be planned (i) to meet the housing and related needs of families with varying incomes and personal requirements, including lower income and elderly families, (ii) to establish sound land-use patterns, (iii) to encourage the most efficient use of transportation and other area wide facilities and the provision of a level of municipal or public services adequate to meet immediate and rea

sonably foreseeable community needs, and (iv) to promote employment opportunities and future economic growth in the community and urban area in which it is situated; and

"(4) the land development shall be consistent with such assurances as the Commissioner may require as to actions to be taken by local public bodies in order to permit the implementation of the new community plan.

"SPECIAL CONDITIONS-SUBDIVISIONS

"SEC. 1005. In the case of land development that is not in connection with a new community, a mortgage may be insured only if it is otherwise eligible and acceptable for insurance under section 1003 of this title and only subject to the following conditions:

"(1) the mortgage shall involve a principal obligation in an amount (A) not to exceed $2,500,000, (B) not to exceed 75 per centum of the estimated value of the security as of the completion of the development to be financed with assistance under this title, and (C) not to exceed the sum of 50 per centum of the estimated value of the land before development and 90 per centum of the estimated cost of such development; and

"(2) the land development shall be in accordance with a plan providing reasonable assurance that the land will be part of a well-planned residential neighborhood which will (A) have a long economic life, (B) be protected against undesirable traffic patterns and other adverse physical conditions. and (C) be served by such school, playground, shopping, recreational, and other facilities as the Commissioner deems adequate.

"PREMIUMS AND FEES

"SEC. 1006. The Commissioner shall collect reasonable premiums for the insurance of any mortgage under this title and shall make such additional charges as he may deem reasonable for the analysis of the new community or land development plan and the appraisal and inspection of the property and improvements. On or before January 1, 1968, the Commissioner shall make a report to the Congress concerning the premium rates and additional charges under this title which he estimates would be adequate to protect the solvency of the Land Development Insurance Fund and to provide income sufficient for the program established by this title to be self-supporting on a continuing basis.

"INSURANCE BENEFITS

"SEC. 1007. The provisions of subsections (e), (g), (h), (i), (j), (k), (1), (m), (n), and (p) of section 207 of this Act shall be applicable to mortgages insured under this title, except that as applied to such mortgages (1) all reference therein to the Housing Insurance Fund or the Housing Fund shall be deemed to refer to the Land Development Insurance Fund, (2) all references therein to section 207 or section 210 shall be deemed to refer to this title, and (3) any reference to an annual premium shall be deemed to refer to such premiums as the Commissioner may designate.

"INSURANCE FUND

"SEC. 1008. There is hereby created the Land Development Insurance Fund which shall be used by the Commissioner as a revolving fund for carrying out the provisions of this title. The Commissioner is authorized to transfer to the Fund a sum not to exceed $10,000,000 from the War Housing Fund created by section 602 of this Act. General expenses of operation of the Federal Housing Administration under this title may be charged to the Land Development Insurance Fund.

"INCONTESTABILITY PROVISIONS

"SEC. 1009. 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 of insurance so executed shall be incontestable in the hands of an approved mortgagee from the date of the execu tion of such contract, except for fraud or misrepresentation on the part of such approved mortgagee.

"RULES AND REGULATIONS

"SEC. 1010. The Commissioner is authorized to make such rules and regulations and to require such agreements as he may deem necessary or desirable to carry out the provisions of this title.