offering may be made upon terms which require the purchase of other securities of the corporation or of interests in such partnership. DIRECTORS Sec. 904. The corporation shall have a board of directors (hereinafter in this section referred to as the "board"), consisting of fifteen members. Three members of the board shall be appointed by the President of the United States, by and with the advice and consent of the Senate, effective on the date on which the other members are elected, and for terms of three years or until their successors have been appointed and have qualified, except that the first three members of the board so appointed shall continue in office for terms of one, two, and three years, respectively, and any member so appointed to fill a vacancy shall be appointed only for the unexpired term of the director whom he succeeds. Twelve members of the board shall be elected by the stockholders. FINANCING THE CORPORATION Sec. 905. The corporation shall have the power to create and issue the number of shares stated in its articles of incorporation. Such shares may be divided into one or more classes, any or all of which classes may consist of shares with par value or shares without par value, with such designations, preferences, voting powers, and special or relative rights, and such limitations, restrictions, or qualifications thereof as shall be stated in the articles of incorporaThe articles of incorporation may limit or deny the voting power of the shares of any class. tion. PURPOSES AND POWERS OF THE CORPORATION Sec. 906. (a) In order to achieve the objectives and carry out the purposes of this title, the corporation is authorized to- (1) plan, initiate, and carry out, pursuant to Federal programs or otherwise, the building or rehabilitation of housing and related facilities primarily for the benefit of families and individuals of low or moderate income; (2) buy, own, manage, lease, or otherwise acquire or dispose of property in connection with the developments, projects, or undertakings referred to in paragraph (1); and (3) provide such funds as may be necessary to accomplish the developments, projects, or undertakings referred to in paragraph (1) (b) Included in the activities authorized to the corporation for the accomplishment of the purposes indicated in subsection (a) of this section are, among others not specifically named- (1) to enter into partnerships, limited partnerships, joint ventures, and other associations with individuals, corporations, and private and governmental agencies, organizations, and (2) to act as manager or general partner of any such partnership, venture, or association; (3) to conduct or contract for research and studies related to the development, demonstration, and evaluation of improved techniques and methods of constructing, rehabilitating, and maintaining housing; (4) to provide technical assistance to nonprofit corporations, limited dividend corporations, and others with respect to the planning, financing, construction, rehabilitation, maintenance, and management of housing for low and moderate income families and individuals; (5) to make loans or grants including grants of interests in housing and related facilities, to nonprofit corporations, limited dividend corporations, and others, in carrying out its activities under subsection (a) of this section; and (6) to hire or accept the voluntary services of consultants, experts, advisory boards, and panels to aid the corporation in carrying out the purposes of this title. (c) To carry out the foregoing purposes and engage in the foregoing activities, the corporation shall have the usual powers conferred upon a stock corporation by the District of Columbia Business Corporation Act. (a) Nothing in this title shall have the effect of waiving or otherwise affecting the applicability of the provisions of the DavisBacon Act (40 U.S.C. 267a-276a-5), or any other law requiring compliance with labor standards, in the case of any construction to which such provisions would otherwise apply. NATIONAL HOUSING PARTNERSHIP Sec. 907. (a) The corporation is authorized to arrange for the formation, as a separate organization, of a limited partnership (hereinafter in this title referred to as the "partnership") under the District of Columbia Uniform Limited Partnership Act (D.C. Code, sec. 41-401 et seq.) for the purpose of engaging in any of the activities authorized for the corporation under section 906 of this title, and to enter into a partnership agreement governing the affairs of such limited partnership. (b) The partnership shall be subject to the provisions, to the extent consistent with this title, of (1) the District of Columbia Uniform Limited Partnership Act and (2) those provisions of the District of Columbia Uniform Partnership Act (D.C. Code, sec. 41-301 et. seq.) made applicable by section 6(2) of that Act (D. C. Code, sec. 41-305(2)). Notwithstanding any inconsistency between the provisions of such Acts, or of any other law, and the provisions of this section, the partnership organized pursuant to this section shall be deemed to have the legal status of a limited partnership. (c) The partnership is authorized to enter into partnerships, limited partnerships, or joint ventures organized under applicable State or local law for the purpose of engaging in low and moderate income housing developments, projects, or undertakings in particular localities. (a)The corporation shall be the general partner in the partnership. The capital of the partnership and the contributions of the partners shall be in such amounts and at such times as are set forth in or pursuant to the partnership agreement. (e) The partnership agreement shall include provisions designed to assure that (1) the partnership shall participate in low and moderate income housing developments, projects, or undertakings in a manner designed to encourage the participation therein of local interests, and (2) in any such development, project, or undertaking the partnership shall not subscribe to more than 25 per centum (including equity investments made in services or property) of the aggregate initial equity investment unless, in the judgment of the corporation as general partner, the balance of the required equity investment is not readily obtainable from other responsible investors residing or doing business in the local community. (f) The partnership agreement may without limitation (1)permit each of the stockholders of the corporation to become a member of the partnership as a limited partner, (2) authorize the inclusion of other limited partners in addition to the stockholders of the corporation, (3)provide that the assignee of the partnership interest of a limited partner of the partnership who is also a stockholder of the corporation may not become a substituted limited partner unless he also acquires the assignor's stock of the corporation, and (4) include provisions requiring that the corporation as a general partner approve the substitution or addition of a member of the partnership. (g) A corporation which is a limited partner in the partnership shall not become liable as a general partner by reason of the fact that (1) such corporation is a holder of shares of voting stock of the corporation constituting not more than 5 per centum of the total number of outstanding shares of such stock and exercises any of the rights (including voting rights) of a holder of such shares, and/or (2) a person who is an officer or director of such corporation (or of another corporation which controls or is subject to the control of, or is under common control with, such corporation) is a director of the corporation and performs the duties of that office. The interest of a limited partner in the partnership shall not be treated as a stock interest in the corporation, notwithstanding that such interest of a limited partner may be proportionate to his stock interest in the corporation. (h) The certificate of the partnership and any amendment thereof required by the District of Columbia Uniform Limited Partnership Act shall be executed and acknowledged by the corporation as member and by each other member of the partnership or his attorney-in-fact duly authorized by power of attorney in writing. The corporation may execute and acknowledge the certificate and any amendment thereof as attorneyin-fact for any member, member to be substituted or added, or assigning member, by whom the certificate or amendment is required to be executed and acknowledged and who has appointed the corporation as such attorney. Approved August 1, 1968 ** FHA Insured Loans and Mortgages Below-market Interest Rate Financing Rehabilitation of housing can be financed with FHA-insured housing loans and mortgages under various FHA programs. The FHA section 220 mortgage insurance program is designed specifically for housing in urban renewal areas. Loans supplementary to existing mortgages can be insured where they finance improvements to housing under certain FHA programs. Nonprofit organizations, public bodies, and cooperatives can finance the rehabilitation of multifamily housing with mortgages bearing below market interest rates under the FHA section 221(a)(3) mortgage insurance program. Nonprofit bodies can finance the purchase and rehabilitation of housing and resale of the housing to low income families with below market interest rates under the FHA section 221 (h) mortgage insurance program. Rehabilitated homeownership and rental housing for lower income families can be provided under the new interest rate reduction programs authorized by the Housing and Urban Development Act of 1968. FHA insures the mortgages and the Secretary of HUD may enter into contracts to make periodic payments to lenders in amounts necessary to make up the difference between the market interest rate on the mortgages and an interest rate as low as 1 percent. The reduction in interest rate paid by the mortgagor is designed to make housing available to lower income families at monthly mortgage payments or rentals they can afford. In the case of a homeowner, his monthly mortgage payment would not exceed 20 percent of the family's monthly income. the case of rental housing, the interest reduction payments will reduce rentals to a basic charge, and a tenant or cooperative member will either pay the basic charge or such greater amount as represents 25 percent of his income but not in excess of the charges which would be necessary without any interest-reduction payments. In Information on these programs can be obtained from the Regional Offices of the Department of Housing and Urban Development. UNIVERSITY OF MICHIGAN 3 9015 03801 4182 Rehabilitated housing can be used for housing for low-income families The under the rent supplement program and the public housing program. Regional Offices of the Department of Housing and Urban Development can provide information on these programs. Loans for housing rehabilitation can be made by Federal savings and loan associations. In rural areas (towns of 5,500 population or less) the Farmers Home Administration can provide insured loans and below market interest rate loans for housing rehabilitation. Information on these loans can be obtained from the county office of the Farmers Home Administration. U. S. GOVERNMENT PRINTING OFFICE 1968 346-479/28 |